Reasons for SC Rejection of IPO Applications 2007 (For Q1 2007)


Reasons for Rejection

Second Board (SB)


Company 1/07/SB

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

  • Concerns over the future growth prospects of the Applicant given that it was highly dependent on limited contracts.

  • The above constituted a non-compliance with paragraphs 6.15 and 6.18 of the Policies and Guidelines on Issue/Offer of Securities (Issues Guidelines).