SingPost chairman Lim Ho Kee steps down
The Singapore Post sign at a post office in Singapore November 2, 2015. Reuters

Shares in Singapore Post plunged more than 7 percent on the first day of trading after the company reported a 28 percent fall in third quarter net profits and as it warned of a write-down in TradeGlobal, the US e-commerce firm it bought in 2015.

SingPost shares fell to S$1.365, the lowest level since August 31, with more than 35.1 million shares traded. The sharp market downturn came even as shareholders raised concerns if the company had overpaid for the TradeGlobal acquisition.

In the earnings statement SingPost said it concluded that the poor performance of TradeGlobal had given rise to significant impairments. The Board also said it will review all the investments of SingPost.

Singpost said its third quarter earnings fell due to operating losses at TradeGlobal and a drop in mail volumes. It said net profit was down to $31.4m, 28.5 percent lower than the previous quarter.

The company said the full extent of the losses incurred by TradeGlobal will be reported in the full year results.

SingPost shares had spiked in October after regulators approved Alibaba Group Holding's stake increase in the company. China's largest e-commerce company now has a 14.4 percent stake in the postal delivery company, up from 10.2 percent, making it the second largest shareholder after Singtel.