Addvalue plans to hold at least 51% a post spin-off stake, and that itself intends to remain listed on SGX’s Mainboard
Addvalue Technologies has received the nod from SGX that its proposed Nasdaq spin off of space connectivity business is not deemed a chain listing, spurring a surge in its share price.
Addvalue will next call for an EGM to get shareholders’ nod to list this subsidiary business organised under its unit Addvalue Solutions.
Besides space connectivity, which includes the fast-growing inter-satellite data relay system, Addvalue’s other business lines include advance digital radio, satcom connectivity and strategic design services.
For now, Addvalue plans to hold at least 51% a post spin-off stake, and that itself intends to remain listed on SGX’s Mainboard.
Addvalue says it has yet to submit any formal listing application and there is no assurance this listing will go ahead.
News of this potential spin off has inspired Jarick Seet of Maybank Securities to raise his target price from 12 cents to 31 cents, as he believes this corporate action can help lift Addvalue’s valuation.
Seet estimates that IDRS, the business to be spun off, will potentially generate US$15-20 million in FY2027 revenue and grow to US$25-30 million come FY2028.
Link: https://sg.finance.yahoo.com/news/addvalue-surges-sgxs-nod-nasdaq-155850183.html