Matex International Terminates Share Subscription Agreements Amid Ongoing Trading Suspension: What Investors Need to Know

Key Points from the Announcement

• Matex International Limited has formally terminated two subscription agreements for new shares with Ms Lim Yan Peng and Ms Gan Peiling, with all parties consenting to the termination.
• The move follows a settlement agreement signed on 14 September 2025 between the Company and the two individuals.
• No new shares will be allotted or issued to Ms Lim or Ms Gan, and there are no further liabilities or obligations among the parties related to these agreements.
• The termination is not expected to have a material impact on Matex International’s net tangible assets or earnings per share for the financial year ending 31 December 2025.
• The company’s securities remain under trading suspension since 23 July 2025.

What Investors Need to Know

This announcement is significant for shareholders and potential investors for several reasons:

1. Aborted Capital Injection: The initial subscription agreements would have resulted in new capital being injected into Matex International via share allotments to Ms Lim and Ms Gan. The termination of these agreements means that the Company will not receive these potential funds, which could affect its future capital structure and growth plans.
2. No Immediate Dilution: Since no new shares will be issued, existing shareholders will not see their holdings diluted by the entry of new investors at this stage.
3. Trading Suspension Remains: The Company’s shares continue to be suspended from trading, a situation that may concern both current shareholders and prospective investors. The lack of liquidity and price discovery could impact investor sentiment and valuation when trading resumes.
4. Uncertainty Ahead: The announcement provides no further guidance on the Company’s strategic direction or plans to lift the trading suspension, leaving investors in a state of uncertainty.
5. No Material Immediate Financial Impact: Management states that the termination will not have a material impact on the Group’s net tangible assets or earnings per share for the current financial year. However, longer-term implications for capital-raising capacity and business growth remain undetermined.

Potential Share Price Implications

The news is potentially price-sensitive for several reasons:

• The aborted share subscription may signal challenges in attracting new investment or executing previous strategic plans.
• The ongoing trading suspension creates continued uncertainty, which could weigh on the stock once trading resumes.
• Any future capital-raising efforts may be scrutinized more closely by the market and regulators.

Other Notable Details

• The announcement was made by Mr Tan Chong Huat, Non-Executive Non-Independent Chairman, on 22 September 2025.
• It has been reviewed by ZICO Capital Pte. Ltd., the Company’s sponsor, but not by the Singapore Exchange Securities Trading Limited (SGX-ST), which assumes no responsibility for its content.
• Shareholders and potential investors are advised to seek professional advice if in doubt about actions to take regarding the company’s shares.

Conclusion

The termination of the subscription agreements removes a potential source of new capital for Matex International and prolongs uncertainty for investors, especially with the ongoing trading suspension. Shareholders should continue to monitor company announcements for updates on the suspension and any new strategic initiatives.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors are urged to conduct their own due diligence and consult with professional advisers before making any investment decisions. The author and publisher assume no responsibility for any actions taken based on this information.

View Matex Intl Historical chart here