TalkMed Group submits application to transfer listing to SGX mainboard

TECHNOLOGY specialist TalkMed Group 5G3 : 5G3 0% 's board of directors said it intends to transfer the listing of the company from the Catalist board of the Singapore Exchange (SGX) to the mainboard.

The group submitted an application for the transfer on Friday (Feb 25), it said in a bourse filing.

The company said that a listing on the mainboard will enhance the long-term value for its shareholders, as public investors tend to "accord a premium" to mainboard-listed firms as compared to companies on the Catalist board.

"Listing on the mainboard would provide the company with greater visibility and recognition in the capital markets and amongst public investors, which could result in better liquidity and improve the performance of its shares," said TalkMed.

A mainboard listing will also provide the company with access to a wider and more diverse investor base, as certain institutional and international investors may be less inclined to invest in companies listed on the Catalist board, it noted.

This could enableTalkMed to better tap into both the equity and debt capital markets to meet its future funding requirements, and provide the group with greater flexibility to pursue further growth opportunities to expand both its geographical reach and diversify its revenue streams.

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Finally, TalkMed reckons a mainboard listing will enhance its image and profile both locally and overseas, and strengthen its branding. This will help improve its ability to attract talent and increase its business opportunities.

TalkMed's board feels that the transfer is "timely and appropriate", given the company's existing business strategies and geographical reach.

The transfer is subject to TalkMed receiving in-principle approval of the SGX-ST, the company's ability to meet all the relevant listing requirements in the Listing Manual for the transfer, as well as the approval of shareholders via a special resolution at an extraordinary general meeting that will be convened, among other conditions.

TalkMed said it will update shareholders as and when there are material developments relating to the transfer.

Shares of TalkMed ended Friday flat at S$0.40.