SGX on Dividend Announcements & Blackout Periods

Dividend announcements

An issuer must not announce dividends for 1Q or 3Q without the quarterly financial statements unless:

1. the issuer has a committed dividend policy to announce dividends on a quarterly basis which has been communicated to shareholders;

2. the issuer confirms for a 1Q or 3Q dividend that it has sufficient financial resources to fulfill its liabilities as and when they fall due, after paying the dividend; and

3. an issuer which is a corporation confirms for a 1Q or 3Q dividend that it complies with Section 403 of the Companies Act (i.e. dividends may only be paid out of profits) or equivalent requirements in its place of incorporation.

Blackout periods for bonus issues, rights issues, records date (fka books closure date) & capital returns

Two categories of issuers & blackout periods:

1. Issuers announcing financials on half year and full year bases – blackout periods start from end of half year/ full year until financial statements announced

2. Issuers announcing financials on quarterly basis – blackout periods start from end of each quarter until financial statements announced

Reference materials:

SGX Practice Note 7.7 (Announcement of dividends and other corporation actions)
SGX Catalist Practice Note 7G (Announcement of dividends and other corporate actions)