CATALIST-listed Asia-Pacific Strategic Investments (AP Strategic) has entered into a conditional subscription agreement with IFH Technology for an aggregate consideration of S$6.3 million, the real estate player announced in a Saturday (Jun 29) bourse filing.
Based on the agreement, inked on Jun 26, IFH Technology will subscribe for about 3.1 billion new ordinary shares in AP Strategic.
The subscription shares are expected to represent about 14.99 per cent of the enlarged issued share capital.
Allocated at S$0.002 per subscription share, the issue price represents a 100 per cent premium to the volume weighted average price on the trades done on the Singapore Exchange on Jun 25, the last full market day before the agreement was signed, said the real estate company.
Close to half of the net proceeds from the proposed subscription is intended to be used for general working capital. About 30 per cent will be used to defray the costs and expenses arising from the company’s acquisition of data solutions provider Mobii Genius, which was announced in April, and the remainder will go to repayment of AP Strategic’s term loan.
For illustrative purposes, the proposed subscription would bring the group’s net tangible assets (NTA) per share for FY2023, ended Jun 30, 2023, to 0.12 Singapore cent as opposed to an NTA of 0.11 cent, assuming completion on Jun 30, 2023.
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Loss per share for the fiscal year would be 0.03 Singapore cent, the same both before and after the proposed subscription, assuming completion on Jul 1, 2022.
After the proposed subscription, the group would have a gearing ratio of 0.05, compared with 0.13 before, assuming completion on Jun 30, 2023.
IFH Technology is a private limited company incorporated in Hong Kong, fully owned by Carson Wen, the founder of Bank of Asia and BOA International Financial Group.
Shares of Catalist-listed AP Strategic last closed flat at S$0.001 on Jun 26 before the group called for a trading halt the next day. Its shares will resume trading on Monday, following the announcement.
