Reasons for SC Rejection of IPO Applications 2007 (For Q2 2007)


Reasons for Rejection

Main Board (MB)


Company 1/07/MB

  • The Applicant was not in a healthy financial position given its weak cash flow position. It had recorded a continuous deficit in its closing cash balances for the past financial years.

  • Concerns over the Applicant’s ability to recover the long outstanding amount of trade and non-trade receivables.

  • The Applicant did not have sufficient contracts-in-hand from non-related parties to sustain a reasonable level of profits for at least 3 years after listing.

  • The above constituted a non-compliance with Paragraphs 6.15 and 7.04(b) of the SC’s Policies and Guidelines on Issue/Offer of Securities.