SINGAPORE (Nov 9): IT parts distributor Serial System has scrapped plans to spin-off a subsidiary via a Hong Kong listing. The application to list, made six months ago, has lapsed.

“In allowing the application to lapse, the board considered various factors, including the overall weakening market sentiment of the Hong Kong capital markets,” the company states on Friday.

“The board believes that the lapse of the Application has no material adverse effect on the group’s business,” the company adds.

The company did not make reference to earlier announcements that executive chairman Derek Goh has been asked to “personally assist” in certain investigations under the Securities and Exchange Act of Taiwan.

Earlier, when Serial System announced the proposed spin-off, it said it will also downgrade its current mainboard listing status on the Singapore Exchange to Catalist. It won’t be making this shift for now.

Serial System has suffered from a string of bad news in recent months. Besides Goh’s legal entanglement in Taiwan, the company is poised to lose its largest supplier by end of this year.

On Oct 2, Serial System announced that Texas Instrument, which has supplied semiconductors for the former to distribute since its founding years, plans to cut off this relationship.

The distribution of TI’s products accounted for US$442.5 million, or 54% of Serial’s revenue for the half year ended June 30 2018.

On Nov 9, Serial System shares closed unchanged at 8.5 cents, down 46.9% year to date.