Union Gas Holdings has received in-principal approval from the Singapore Exchange Securities Trading (SGX-ST) for a proposed transfer to the Mainboard, subject to shareholders' approval at an Extraordinary General Meeting to be convened.
Union Gas, which has been listed on the Catalist board since July 2017, had submitted the application for the transfer on April 27.
See also: Union Gas Holdings draws SGX query after share price leap
In its press release dated June 11, Union Gas says it believes a listing on the Mainboard would provide the company with greater visibility and recognition in the market.
“The Group believes that listing on the Mainboard would provide us with a wider platform to reach out to a larger investor base (which may include institution investors and/or overseas based investors), with greater opportunities for future fund raising and corporate actions,” says Teo Hark Piang, executive director and CEO of Union Gas.
“This could potentially facilitate the Group to better tap into capital markets (both equity and debt) where such opportunities for certain fundraising activities are presented to companies of larger market capitalisation and/or companies listed on the Mainboard, to meet the Union Gas’ funding requirements and provide the Group with greater flexibility to pursue its future plans,” Teo adds.
Shares in Union Gas closed 1 cent or 1% lower at 95.5 cents on June 10.
Cover photo: Union Gas Holdings