CFA Society Singapore
SINGAPORE (June 22): Serial System is planning to spin off its subsidiary Serial Microelectronics (HK) (SMHK) so that it can be listed separately on the Mainboard of the Stock Exchange of Hong Kong.
As part of the spinoff, the company also intends to transfer its listing from the Mainboard of the Singapore Exchange to Catalist.
SMHK is a private company incorporated in Hong Kong, which is 91% owned by Serial System through its wholly owned subsidiary, Serial Microelectronics. The remaining 9% of the shares of SMHK is owned by Lawrence Ho Yung, President of SMHK.
SMHK holds interests in the several subsidiaries and associated companies including Serial Microelectronics (Shenzhen) Co. (PRC), Serial Microelectronics (Beijing) Co. (PRC) and Unitrontech China Co. (Hong Kong).
The spinoff group is engaged in the business of distributing electronic components in Hong Kong and China. Its customers are primarily smartphone and telecommunications, household appliances, consumer electronics, automotive and industrial manufacturers based in China and Hong Kong.
Serial System also intends to maintain a controlling interest in the spinoff group after the move.
Serial System says a separate listing of SMHK will enable the group to unlock the value of the spinoff group, which the company can leverage to fund further growth and expansion.
The spinoff group will be able to independently raise new funds from the HK market, enabling the group to fund its business expansion independently of the company.
Independent access to capital will allow the spinoff group to augment its position in the burgeoning China market, without increasing the company’s exposure to the financial risks of the spinoff group.
Shares in Serial System closed at 18 cents.