FSL Trust placed on SGX watch-list under minimum trading price rule

Singapore-listed First Ship Lease Trust (FSL Trust) has been placed on a ‘watch-list’ on Thursday by the Singapore Exchange (SGX) relating to the Minimum Trading Price (MTP) rule.

FSL Trust Management, the trustee-manager of FSL Trust, said it received a notification from SGX that FSL Trust has recorded a volume-weighted six-month average price of less than SGD0.20 ($0.15) and a six-month average daily market capitalization of less than SGD40m.

Due to the MTPEntry Criteria set out in SGX’s listing rule, FSL Trust has been placed on the watch-list with effect 6 June 2019.

“Accordingly, the trustee-manager must take active steps to record a volume-weighted six-month average price of at least SGD0.20 and a six-month average daily market capitalization of SGD40m or more in order to meet the MTP Exit Criteria outlined in Listing Rule 1314(2),” FSL Trust Management stated.

It pointed out that while FSL Trust remains on the watch-list, trading in its securities will continue.

However if the shipping trust did not manage to comply with the listing rule within 36 months from 6 June 2019, SGX would either remove the trust from listing or suspend trading of its shares with a view to removing it from listing.

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FSL Trust Management, meanwhile, said the trust has recently raised gross proceeds of SGD43.03m from a preferential offering, which is expected to “positively impact the trust’s market capitalisation.”

The SGX MTP watch-list criteria was introduced in March 2015 to address the risk of low-priced securities being more susceptible to excessive speculation and potential market manipulation.

Posted 06 June 2019

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Lee Hong Liang

Asia Correspondent

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