F J Benjamin, a storied Singapore operator of luxury fashion brands under franchise, said Thursday SGX had granted the company’s application for a 12-month extension of the 36-month period for exiting the watch-list.
Failure to meet the requirements for removal from the watch-list can result in delisting or suspension of a company’s shares.
The “cure period” for meeting the requirements for removal from the watch-list had been set to end on 4 December 2019, F J Benjamin said in a filing to SGX.
F J Benjamin said it sought the extension for three reasons:
- The company has made “concerted efforts” to improve its profitability, including discontinuing money-losing brands and taking cost control measures, and it has marked a return to profit, the filing said.
- The stock’s small market capitalization is due to the market pricing the shares at a “significant discount,” the filing said, adding that has resulted in a low price-to-book ratio of 0.534.
- The company is pursuing “new and exciting strategic initiatives,” with a view to meeting challenging retail conditions in Singapore, Malaysia and Indonesia, the filing said.
That includes implementing online sales channels and diversifying the company’s brand portfolio, it added.
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