Koh Brothers Eco Engineering proposes transfer to SGX mainboard

[SINGAPORE] Catalist-listed engineering solutions provider Koh Brothers Eco Engineering has proposed a transfer to the mainboard of the Singapore Exchange (SGX) to enhance the long-term value for its shareholders.The company said on Wednesday (May 27) in a bourse filing that it has submitted an application for the transfer.Koh Brothers Eco Engineering is a subsidiary of construction and property group Koh Brothers. The latter holds a 54.8 per cent stake in the unit.The board of Koh Brothers Eco Engineering said listing on the mainboard will enhance the long-term value for the company’s shareholders for a number of reasons.First, the company’s directors called the proposed transfer “timely and appropriate”, on account of the company’s “market position, stage of growth and relative stability”.The board noted that Koh Brothers Eco Engineering has been listed on the Catalist board of SGX since Feb 27, 2006, and that the transfer “would better reflect the company’s current stage of development and future growth trajectory”.Second, the board said the group “remains confident in navigating the evolving business environment”. It added that it will continue to strengthen strategic collaborations and adopt a “prudent yet proactive approach” in pursuing sustainable growth opportunities.It noted that as at Dec 31, 2025, the group’s total order book across its engineering and construction segment, as well as bio-refinery and renewable energy segment, stands at a “healthy level” of an estimated S$1.1 billion.Third, the board said a listing on the SGX mainboard will enhance the profile of Koh Brothers Eco Engineering locally and overseas. This is because public investors tend to place a premium on mainboard-listed companies compared to Catalist-listed companies.“Listing on the mainboard will accord the company greater visibility and recognition in the capital markets and amongst public investors,” it explained.It added that a mainboard listing could therefore result in better liquidity and improve the performance of the company’s shares, as well as enable it to recruit better talent, strengthen its brand and attract new business opportunities.Fourth, a mainboard listing will provide the company “with a wider platform and greater opportunities” for future fundraising, on top of giving it access to a larger and more diverse investor base.This includes institutional and overseas investors whose mandates may be confined to investment in only mainboard-listed companies, the board said. It added: “This is expected to enhance the liquidity of the shares and encourage greater institutional investor participation.”Thus, the directors believe a mainboard listing will result in a market valuation “that better reflects the underlying value” of the group and provide it with “greater flexibility” to pursue growth opportunities locally and overseas.Fifth, the board noted that companies listed on the mainboard generally benefit from “broader and more consistent” analyst coverage.“Increased research coverage may improve market transparency, reduce information asymmetry, and support a more accurate and efficient valuation of the shares,” it said.The board thus expects the proposed transfer to enhance the company’s credibility and visibility with key stakeholders, including customers, suppliers, lenders and prospective strategic partners.Having a mainboard status also provides “improved peer comparability” within the larger-capitalisation segment and reinforces the group’s corporate profile, it added.The company said it will update shareholders as and when there are material developments with regard to the proposed transfer.Shares of Koh Brothers Eco Engineering closed at S$0.132 on Tuesday, down S$0.003 or 2.2 per cent, before the announcement.