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Stocks to watch: Challenger, Lafe Corp, companies joining SGX watch-list

THE following companies saw new developments that may affect trading of their shares on Thursday:

Challenger Technologies: Challenger said on Tuesday night that the Singapore Exchange (SGX) has no objection to its delisting, subject to compliance with listing rules. This follows the mainboard-listed electronics retailer's March 20 announcement of its proposed voluntary delisting, with Digileap Capital making a cash exit offer for all Challenger shares at 56 Singapore cents each. Challenger said it will send the delisting circular and exit offer letter to shareholders in due course, including notice of the extraordinary general meeting at which shareholder approval for the delisting will have to be obtained. Challenger shares closed down 0.5 Singapore cent or 0.91 per cent at 54.5 cents on Tuesday.

Lafe Corp: Mainboard-listed Lafe Corp has received a notification of delisting from Singapore Exchange Securities Trading (SGX-ST) dated June 4, after having been on the exchange's financial watch-list since June 3, 2016, the developer announced on Wednesday evening. Firms on the financial watch-list need to fulfil exit requirements within 36 months, namely to record consolidated pre-tax profit for the most recently completed financial year, and post an average daily market cap of at least S$40 million over the last six months. Lafe Corp was informed that, having not met the requirements for removal, SGX-ST will proceed to delist it. The company or its controlling shareholders must provide "a reasonable exit offer" to shareholders, and must advise SGX-ST of the exit offer proposal no later than one month from the date of the delisting notification. Trading in Lafe shares will continue until 5pm on July 3, after which trading will be suspended from 9am on July 4 till the completion of the exit offer. Lafe shares last closed unchanged at 23 Singapore cents on June 4.

SGX watchlist: Six more mainboard-listed companies have announced they will be included on the SGX watch-list with effect from June 6, with one of them due to the financial entry criteria, and the other five not meeting minimum trading price (MTP) requirements. Late Wednesday night, ASTI Holdings announced it would be placed on the financial watch-list because it had pre-tax losses for its three most recently completed consecutive financial years, and failed to maintain an average daily market cap of at least S$40 million over the last six months.

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On Thursday morning, Tye Soon, Anchun International Holdings, Design Studio Group, Dynamic Colours, and First Ship Least Trust’s manager made regulatory filings announcing their inclusion to the MTP watch-list. These five firms are joining the watch-list under the MTP criteria, which means they had a volume-weighted average price of less than S$0.20 per share, and an average daily market cap of less than S$40 million over the last six months. This brings the total number of companies joining the MTP watch-list to 27, as of Thursday morning before the market opened, after SGX’s latest half-yearly review. The companies notified shareholders and business partners that their operations are continuing as per normal.

Earlier on Wednesday, six companies announced their inclusion on the MTP watch-list with effect from June 6: Advanced Holdings, China Jishan Holdings, China Mining International, Kencana Agri, PSL Holdings and Sakae Holdings.