Singapore Exchange (SGX) today ordered the delisting of FM Holdings from Catalist as the company has failed to engage a sponsor for more than three continuous months as required by Catalist rules. This is the first time a Catalist-traded company has been asked to do so since the market was established in February 2008.

Catalist, a sponsor-supervised listing platform, requires its companies to have a sponsor at all times. The responsibilities of sponsors are to supervise and advise Catalist companies on corporate governance matters and compliance with the Catalist rules.

FM Holdings was listed on Sesdaq in May 2005 and transited to Catalist with the appointment of a sponsor in September 2008. In January, FM Holdings’ sponsor, PrimePartners Corporate Finance as well as two of its three independent directors resigned from their appointments, citing lack of transparency in the management of the company.

On March 23, the board of FM Holdings then requested for suspension of trading in its shares.

As the last day of appointment of the former sponsor was April 18, FM Holdings was required to appoint a sponsor by July 18. Since the PrimePartners had resigned in January, this means the company failed to appoint a sponsor for six months. It applied to the Exchange for a one-month extension for the purpose of allowing a prospective sponsor to complete due diligence prior to engagement. The company has since informed SGX that it is unable to secure a sponsor within the extension of time requested.