Dapai to place S$1.6m of shares for move to Catalist, targets Thai smart card business

BACKPACK maker Dapai International Holdings Co plans to place S$1.6 million of new shares to transfer its Singapore listing to the Catalist board, and will also acquire a Thai smart card business by issuing additional shares.

The new shares represent 20 per cent of existing share capital and will be sold at 0.8 Singapore cent apiece. The issue price is a 6.8 per cent discount to the volume-weighted average price of 0.86 Singapore cent for Dapai shares on Feb 10, the last full trading day for the stock before trading was halted on Feb 12.

The placees are five Thai individuals, who will each take up shares equal to 3.33 per cent of the enlarged share capital.

The proceeds of the placement will be used to pay expenses related to a planned transfer of Dapai's listing from the Mainboard to the Catalist board of Singapore Exchange.

Dapai said it also plans to acquire Thai smart card company Smart Traffic Co in a share swap, although the exact consideration rate has not been determined. The acquisition will give the company a profitable business with an operating track record and growth opportunities in an "exciting" industry, Dapai said.

Trading in Dapai shares will resume on Wednesday (Feb 17).