Avi-Tech Electronics placed on SGX watch-list

AVI-TECH Electronics has been added to the watch-list of Singapore Exchange (SGX) after it posted losses for the past three consecutive years.

With effect from Wednesday, the semiconductor solutions provider has two years to apply for removal from the watch-list or risk being delisted from SGX.

There are various ways for a company on the watch-list to apply for removal. One way is to achieve pre-tax profit for the most recent financial year and have an average market value of at least S$40 million over the last 120 market days.

Another route is to achieve a cumulative pre-tax profit of at least S$10 million for the last one or two years.

In its announcement on Wednesday, Avi-Tech told shareholders and business partners that the group's business will continue as usual.

The company's current state is a far cry from its prior years. Incorporated in Singapore in 1981, it was awarded the top slot in EDB's list of Singapore's 50 most enterprising, privately-held companies in 1999, and subsequently listed on SGX in 2007.

With Avi-Tech's inclusion, the number of companies added to SGX's watch-list this year is 15. These include steel company Novo Group and integrated potato producer China Essence Group, which in 2010 was named one of Forbes China's most promising companies.