Lum Chang to list interior fit-out business separately on SGX Catalist

The proposed spin-off listing is currently in its preliminary stage.

Lum Chang Holdings has proposed to spin off its interior fit-out business, Lum Chang Interior (LCI) in a separate listing to the SGX Catalist.

LCI has been an indirect subsidiary of Lum Chang Holdings since 1 February 2018, with 80% of its shares held by another unit, Lum Chang Asia Pacific, and the remaining 20% owned by its managing director and co-founder, Lim Thiam Hooi.

In a bourse filing, the company stated that it may undertake a distribution-in-specie (DIS) of some ordinary shares in the capital of LCI to its shareholders.

Upon completion of the proposed spin-off listing and the proposed DIS, Lum Chang shareholders will become direct shareholders of LCI and will be entitled to the shares held in two separately listed companies without any additional cash outlay.

In addition, whilst the company structure is not yet finalised, Lum Chang intends to retain at least 51% of the shareholding interest in LCI following the proposed spin-off listing.

Lum Chang said that the move will “unlock the potential value of the interior fit-out and renovation business” and attract more investors as its business value will be more “accurately reflected’.

The proposed spin-off listing is currently at a preliminary stage. The company is in the process of appointing an issue manager and legal advisors for the proposal.