Reasons for SC Rejection of IPO Applications 2007 (For Q3 2007)


Reasons for Rejection

Second Board (SB)


Company 1/06/MB

  • Concerns over the growth prospects of the Applicant given that it was involved in a small domestic market size and recorded a stagnant level of overseas sales. Furthermore, the value added activities carried out by the Applicant on its products were rather minimal.

  • The Applicant was not in a healthy financial position given its high inventory level, trade receivables and turnover period.

  • The above constituted a non-compliance with Paragraph 6.18 and 6.15 of the SC’s Policies and Guidelines on Issue/Offer of Securities.