Ridiculous.
IPO pulled because of a S$1.83m insurance premium - huh?
That has got to be the most ridiculous thing I've heard.
Albeit amounting to 4.96% of earnings, it represents a mere 1.6% of the offering (pre-greenshoe). Furthermore, IPO fees alone are S$6.2m. Under Section 241 of the SFA - should a new circumstance arise since the prospectus was lodged with the MAS, the person making the offer shall take reasonable steps to inform potential investors of the lodgment of any supplementary or replacement document. Couldn't they have issued a separate supplementary statement?
A similar scenario happened 2 years back when DBS, SCB, Macquarie underwrote ARA's Dynasty REIT. The reason provided was weak market sentiments. Now, that's reasonable given Religare Health, Astro and HuiXian crashed post debut.
Pity the lawyers and bankers who have spent hours drafting the prospectus. Been there, done that...
Nevertheless this is a failure in due diligence and the architects of the IPO have only themselves to blame.
On a side note, my first post on an IPO ended so theatrically bad. Coincidence?
Exciting times ahead!
GS
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