Renaissance United says revised share subscription plan again rejected by SGX

Renaissance had previously sought approval from SGX to allow two Malaysian private investors -- Tan Chin Chuan and Tan Chek Meng -- to subscribe to 1.23 billion new shares in the company at $0.000900177 each. The proposed subscription, which was first announced on Feb 27, would have some $1.1 million.

In its Thursday night filing, Renaissance said SGX had rejected the first application because “any issue of shares at or below the minimum trading price of $0.001 would artificially inflate the company's market capitalisation".

In its second application which was also rejected, Renaissance had revised the subscription price to $0.0011 per share price that would have raised some $1.4 million for the company.

Explaining the rejection, SGX said it has taken into account that Renaissance shares have been trading at the minimum trading price of $0.001 or $0.002, “which is one tick above the minimum trading price”.

SGX said the $0.001 price differential could potentially “cause the company’s market capitalisation to double and increase by more than $6 million based on its 6.18 billion shares as on July 31.

“In this regard, the concerns on the possible artificial inflation of the company’s market capitalisation have not been addressed,” says the regulator.

In its previous reincarnation as IPCO, it was one of nearly a dozen companies linked to the penny stock crash of 2013. Its former CEO Quah Su-Ling and boyfriend John Soh Chee Wen are currently on trial for being the alleged masterminds of the crash of three pennt stocks -- Blumont Group, Asiasons Capital, renamed as Attilan Group, and LionGold Corp –– that wiped off some $8 billion in market value.

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See: John Soh named in US suit filed against former IPCO International

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Shares in Renaissance last traded at $0.002.