Key Points from the Announcement
- SGX-ST Approval: Prospera Global Limited has received confirmation from the Singapore Exchange Securities Trading Limited (SGX-ST) that it may use its adjusted net asset value, reflecting the effects of its recent Placement Exercise, to compute relative figures for the proposed disposal of its investment property under Catalist Rule 1006.
- Transaction Classification: The disposal will be classified as a “disclosable transaction” under Chapter 10 of the Catalist Rules and Practice Note 10A. Importantly, no shareholder approval is required for this transaction.
- Financial Impact: The disposal is the sale of a profitable asset by a loss-making issuer. The net asset value of the property being disposed is S\$797,102 (US\$615,000), which represents 11.86% of the Group’s adjusted net asset value. The purchase consideration is US\$550,000 (approximately S\$712,855), which equates to only 1.74% of the Company’s market capitalisation.
- Profitability: The asset being disposed generated a net profit of S\$2,916 (US\$2,250) for 1H2025, while the Group posted a net loss of S\$1,616,000 for the same period.
- No Equity Issuance: There will be no new equity securities issued as part of this disposal.
- Financial Effects: The disposal will have a minor impact on net tangible assets (NTA) per share and loss per share (LPS). NTA per share will decrease marginally from 1.01 cents to 1.00 cents. LPS for FY2024 will increase from 0.46 cents to 0.47 cents.
- Caution to Shareholders: The transaction is subject to conditions and there is no certainty at this stage that it will be completed. Shareholders should exercise caution when dealing in the Company’s securities.
Detailed Analysis for Investors
Background: Prospera Global Limited and its subsidiaries are proposing to dispose of a group investment property. This follows a recent Placement Exercise which raised gross proceeds of S\$7,040,471 via the issuance of 414,145,370 shares, with the effects of this exercise reflected in the financial calculations for this disposal.
SGX-ST No Objection
The Company received confirmation from SGX-ST on 15 December 2025 allowing it to use its adjusted net asset value for calculating the transaction’s relative figures under Catalist Rule 1006. This regulatory assurance removes a key uncertainty and enables the transaction to proceed as a “disclosable transaction” without requiring shareholder approval.
Transaction Details
- Property Net Asset Value: S\$797,102 (US\$615,000)
- Group Adjusted Net Asset Value: S\$6,719,471 (post-placement, as of 30 June 2025)
- Purchase Consideration: US\$550,000 (approximately S\$712,855)
- Market Capitalisation: S\$41,000,392 (based on 828,290,740 issued shares and volume-weighted average share price of S\$0.0495)
- Net Profits (1H2025): Property: S\$2,916. Group: Net loss of S\$1,616,000
- Relative Figures:
- Net asset value to be disposed: 11.86%
- Net profits attributable to disposed asset: (0.18)%
- Purchase consideration vs. market cap: 1.74%
- No issuance of new shares and no mineral, oil, or gas assets involved.
Practice Note 10A Analysis
The disposal qualifies under paragraph 4.4(d) of Practice Note 10A as a disposal of a profitable asset by a loss-making issuer, with the sum of the net profit attributable to the asset and the loss on disposal equating to 5.4% of the consolidated net loss (exceeding 5% but not 10%). Since the relative figures for the asset value and purchase consideration do not exceed 50%, the transaction only requires disclosure, not shareholder approval.
Financial Effects Post-Disposal
| Financial Metric |
Before Disposal |
After Disposal |
| NTA (S\$’000) |
8,333 |
8,249 |
| NTA per Share (S\$ cents) |
1.01 |
1.00 |
| Loss Attributable to Shareholders (S\$’000) |
3,195 |
3,285 |
| LPS (S\$ cents) |
0.46 |
0.47 |
These figures are calculated assuming the Placement Exercise occurred at the start of FY2024. The impact on NTA and LPS is minimal, suggesting the disposal is not expected to materially affect the Group’s financial health or shareholder value in the near term.
Shareholder Considerations and Price Sensitivity
- No Shareholder Approval Required: The transaction’s classification means shareholders will not vote on this disposal.
- Price Sensitivity: Given the small size of the asset relative to the Group and the minimal impact on key financial metrics, the transaction is unlikely to have a significant immediate impact on the share price.
- Ongoing Disclosure: The Company will continue to update shareholders on any material developments related to the disposal.
- Uncertainty: The disposal remains subject to certain conditions and may not be completed. Shareholders should remain vigilant and seek independent advice if uncertain.
Conclusion
While the proposed disposal of investment property by Prospera Global Limited is a significant regulatory event and constitutes a disposal of a profitable asset by a loss-making issuer, its financial impact is minor and does not warrant concern over major shifts in shareholder value at present. However, investors should monitor further announcements for any changes that may arise as the transaction proceeds.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult their own professional advisers or conduct independent research before making investment decisions related to Prospera Global Limited. The information herein is based on public company disclosures and may be subject to change.
View ProsperaGlobal Historical chart here
