Ellipsiz Ltd Sells LCH Shares: What Retail Investors Must Know About the \$1.3 Million Disposal

Key Highlights

• Ellipsiz Ltd disposes 2.91 million shares in Lum Chang Holdings Limited (LCH) via open market transactions.
• Estimated net proceeds of S\$1.3 million, yielding a net gain of S\$0.2 million.
• The disposal constitutes a “discloseable transaction” under SGX rules, with relative figures relevant to shareholders.
• Proceeds intended to boost Group liquidity and support future business and investment opportunities.
• No change to total share capital; NTA per share marginally increases, EPS marginally decreases.
• No directors or controlling shareholders have an interest in the transaction aside from their Company shareholdings.

In-Depth Overview: What Happened?

Ellipsiz Ltd, a company listed in Singapore, announced that it has sold a total of 2,910,100 shares in Lum Chang Holdings Limited (“LCH”) between 1 and 8 September 2025. These LCH shares were originally distributed to Ellipsiz Ltd by RMDV Investments Pte. Ltd. in June 2021, following the exercise of a share option tied to an earlier investors’ agreement involving a mandatory conditional cash offer for LCH.

Why Did Ellipsiz Sell?

According to the Board, this disposal follows a strategic review of the Group’s operational, investment, and business needs. The sale is aimed at improving liquidity and providing the Group with a pool of funds to pursue new business or investment opportunities, with the intention of enhancing shareholder value. The Board emphasized that this move is believed to be in the best interests of both the Company and its shareholders.

Is This a Big Deal for Shareholders?

The disposal, while not a massive deal-changing event, does constitute a “discloseable transaction” under Chapter 10 of the Singapore Exchange (SGX) Listing Manual. The key relative figures as calculated under Rule 1006 are as follows:

• Net asset value of disposed assets vs. Group NAV: 1.0%
• Net profits attributable to disposed assets vs. Group net profits: 5.1% (exceeds 5%, making this a discloseable transaction)
• Aggregate consideration received vs. Company market cap: 2.9%

The Company’s market capitalisation was about S\$45.6 million at the time of the transaction, with the shares sold at a volume weighted average price of S\$0.275 each.

Financial Impact: What Changes?

• NTA (Net Tangible Assets) per Share: Slight increase from 52.05 cents to 52.19 cents.
• EPS (Earnings Per Share): Slight decrease from 2.19 cents to 2.13 cents.
• Estimated net proceeds: S\$1.3 million with a net gain of S\$0.2 million compared to the NAV of the disposed shares.
• No new shares issued; no dilution for existing shareholders.

It’s important to note that the gain from the sale will be reclassified from the fair value reserve to retained earnings, as the LCH shares are treated as financial assets measured at fair value through other comprehensive income.

Management and Shareholder Interests

The Company confirmed that no directors, controlling shareholders, or their associates have any direct or indirect interest in the disposal, except through their existing shareholdings in Ellipsiz Ltd.

What Should Shareholders Watch?

• This transaction improves the Company’s liquidity position, which could support future growth or opportunistic investments.
• Given that the relative figures are modest, the impact on share price may be limited, but the increased cash position gives management more flexibility.
• Investors should monitor how the Company deploys these new resources, as future investments or acquisitions could be price-sensitive events.
• The disposal confirms management’s focus on capital efficiency and prudent balance sheet management.

Conclusion

While the disposal of LCH shares by Ellipsiz Ltd is not a game-changing transaction, it nonetheless reflects proactive capital management and a readiness to seize new opportunities. The move marginally strengthens the Company’s financial position and signals to the market that management remains focused on shareholder value. Retail investors should keep an eye on how the proceeds are utilized in the coming months, as this could have a more significant impact on the Company’s growth prospects and share price.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Retail investors should conduct their own research or consult a financial advisor before making investment decisions. The writer and publisher assume no liability for any actions taken based on the information provided above.

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