LET'S face it. When trading on a stock is suspended by the Singapore Exchange , the one thing buoying it from being booted from the bourse is hope - copious amounts of it - that it will one day be worthy of trading again.
Three years ago, the stock exchange started giving its well-intentioned six-monthly updates of the companies on the suspended list, so as to keep shareholders in the loop.For one, the number of suspended companies is growing; it had doubled to 41 in three years, as at April this year.One in eight made their way back to the bourse courtesy of reverse takeovers , or as a result of other factors such as meeting the free-float rule.
Just last week, it began a new chapter as Revez Corp following an RTO of a technology business. The Catalist-listed counter finished at 43 Singapore cents on Tuesday - up from 14.8 Singapore cents on June 10, the first day it resumed trading. Truth is, white knights that are eager to pull off a backdoor listing on the SGX by swooping in to inject assets into these languishing firms are few and far between. For one thing, they may be repelled by the suspended companies' questionable governance that landed them in the soup in the first place.