Lum Chang Creations Limited Receives Approval-in-Principle for Mainboard Transfer

Lum Chang Creations Limited, a Singapore-incorporated company listed on the Catalist Board of the Singapore Exchange Securities Trading Limited (SGX-ST), has announced a significant development that may impact its share price and investor outlook. The company has received an approval-in-principle from SGX-ST for its proposed transfer from the Catalist Board to the Mainboard, subject to certain conditions. This move is seen as a major milestone and is likely to be closely watched by investors and shareholders.

Key Highlights of the Announcement

• Approval-in-Principle Received: On 12 February 2026, Lum Chang Creations received a reply from SGX-ST indicating no objection to the proposed transfer, the waiver from Catalist Rule 408(1), and amendments to the voluntary moratorium provided by Mr Lim Thiam Hooi.
• Waiver Granted: The company was listed on Catalist on 21 July 2025 and does not meet the minimum 2-year listing requirement for Mainboard transfer. However, a waiver was granted based on the company’s strong financial performance and the timing of SGX rule changes, with pre-tax profits of S\$16.5 million recorded shortly before the Mainboard profit requirement was revised downward from S\$30 million to S\$10 million.
• Financial Performance: The company’s first audited annual report post-IPO showed pre-tax profits of S\$16.5 million, which was a key factor in SGX-ST’s considerations for the waiver and transfer.
• Proposed Amendments to Voluntary Moratorium: Amendments to the voluntary moratorium provided by Mr Lim Thiam Hooi were approved, subject to specific disclosure requirements and voting restrictions.
• Requirements for Final Transfer: The approval-in-principle is subject to compliance with SGX-ST listing requirements, shareholder approval via a special resolution, and several written undertakings and confirmations from the company, its sponsor, and its directors.
• Proposed Placement: The company must complete a placement to increase public shareholding to satisfy the Mainboard listing requirements.
• Extraordinary General Meeting (EGM): A circular detailing the Proposed Transfer and Amendments and notice of an EGM to seek shareholder approval will be sent out in due course.

Details Investors and Shareholders Must Know

• Potential Price Sensitivity: The transfer to the Mainboard is a significant event that typically increases a company’s visibility, may attract institutional investors, and potentially improves liquidity and valuation. However, completion is subject to shareholder approval and fulfillment of SGX-ST conditions.
• Shareholder Approval Required: Shareholders will vote on the transfer and the proposed amendments. Lum Chang Holdings Limited, Mr Lim Thiam Hooi, and their associates will abstain from voting, ensuring impartiality.
• Disclosure Obligations: The company must announce the waiver granted, reasons for seeking it, SGX-ST’s considerations, and whether the waiver conditions have been satisfied.
• Risk Factors: There is no certainty that shareholder approval will be obtained or that the transfer will complete. Investors are cautioned to consult their professional advisers before making any decisions.

Additional Information

• Board and Sponsor Confirmations: Written undertakings and confirmations are required from the company, its sponsor, and directors as per SGX Mainboard rules.
• Moratorium Amendments: The company must provide detailed disclosures in the circular, including options considered for meeting Mainboard shareholding requirements, rationale for the chosen approach, and sponsor/board assessments.
• Next Steps: The company will make further announcements on material developments related to the transfer and completion of remaining waiver conditions.

Conclusion

The approval-in-principle for Lum Chang Creations Limited’s transfer to the SGX Mainboard represents a pivotal moment for the company. While the move could enhance corporate visibility, attract new investors, and potentially improve share liquidity and valuation, completion is contingent on shareholder approval and fulfillment of regulatory requirements. Shareholders are encouraged to review the upcoming circular and participate in the EGM.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should exercise caution and consult their financial advisers before making investment decisions. There is no guarantee that shareholder approval will be obtained or that the proposed Mainboard transfer will be completed. The Singapore Exchange Securities Trading Limited has not reviewed or approved this announcement and assumes no responsibility for its contents.

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