Citing its "market position, stage of growth and relative stability", Koh Brothers Eco Engineering plans to transfer its Catalist listing to the Mainboard, so as to enhance long-term value for shareholders.
KBEE, noting its $1.1 billion order book as at end of last year, says it is "confident in navigating the evolving business environment" even as it continues to "adopt a prudent yet proactive approach in pursuing sustainable growth opportunities."
The company, which was in the news in recent months for its controlling stake in separately listed Oiltek International, says its orders are from across its engineering and construction segment and bio-refinery and renewable energy segment.
KBEE says that investors tend to place a premium on Mainboard listings versus those quoted on the Catalist.
Oiltek, 68.14%-held by KBEE, listed on the Catalist on March 22 and was transferred to the Mainboard last June, and is in the midst of listing on the Bursa as well. Its latest market cap is around $870 million.
KBEE, in contrast, is valued by investors at $358.7 million. It was listed on the Catalist since Feb 2006.
Koh Brothers Group, the parent company of KBEE, is valued at $175.2 million. It holds 54.81% of KBEE.
KBG has resisted a couple of attempts by shareholders who want to receive distribution in specie of Oiltek shares.
"Listing on the Mainboard will accord the company greater visibility and recognition in the capital markets and amongst public investors.
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"This could in turn result in better liquidity and improve the performance of the shares of the company," says KBEE.
The transfer is subject to the approval of SGX and KBEE's own shareholders at an EGM to called.
