China Gaoxian receives SGX delisting notice, must provide exit offer

THE Singapore Exchange (SGX) has ordered yarn supplier China Gaoxian Fibre Fabric Holdings to delist because of its failure to meet mainboard requirements on profitability and market capitalisation.

The stock will continue to trade until the market close of April 2, 2019, and thereafter remain suspended until the completion of an exit offer. Shares in China Gaoxian closed flat at 0.8 Singapore cent apiece on Feb 20.

China Gaoxian was placed on the watch-list on March 3, 2016, for posting three consecutive years of pre-tax losses and for failing to maintain a market cap of at least S$40 million.

On Thursday, SGX notified the company that it has rejected its Feb 18 application requesting a 12-month extension to meet certain requirements in order to exit the watch-list, and that it would be delisted if it is unable to exit the watch-list by March 2.

SGX also ordered the company or its controlling shareholder to advise the exchange on a "reasonable" exit offer proposal within a month.