Hot stock: V2Y surges as much as 33.3% on planned placement to raise S$2 million
The counter was up S$0.005 to S$0.02 with 3.2 million shares having changed hands when the market opened, after a trading halt was lifted
SHARES of V2Y Corporation rose as much as 33.3 per cent on Thursday (Jul 11) morning, after it proposed to raise S$2 million by issuing a total of 135.1 million new ordinary shares at S$0.0148 apiece.
The counter was up S$0.005 to S$0.02 with 3.2 million shares having changed hands when the market opened, after a trading halt was lifted.
By 9.51 am, V2Y was one of the most actively traded counters by volume. Its shares were trading up 6.7 per cent or S$0.001 at S$0.016. No married deals were recorded in early trade, ShareInvestor data showed.
The counter ended S$0.001 or 6.7 per cent higher at S$0.016 on Thursday.
On Wednesday, V2Y said it entered into three subscription agreements with Felix Ang, a business owner in the food and beverage and wholesale sector; Muhammad Asyraf, a property investor; and Teng Jun Jie, owner of an interior design company.
As part of the agreement, the trio will subscribe for the placement shares through two tranches.
Under the first tranche, Ang will subscribe for 20.3 million of the new shares for S$300,000, while Asyraf and Teng will purchase 6.8 million shares each for S$100,000.
In the second tranche, Ang will purchase 40.5 million shares for S$600,000, while the other two will purchase 30.4 million shares each for S$450,000.
Following the completion of both tranches, V2Y’s share base will increase to 489,021,044 shares from 353,885,908 currently.
Ang, Asyraf and Teng will each hold about 12.44 per cent, 7.6 per cent and 7.6 per cent, respectively, of V2Y’s enlarged capital post the new share placement. The trio will also become substantial shareholders of the company.
The issue price represents an approximate 9.98 per cent discount to its volume weighted average price of S$0.0164 per share for trades done on the Singapore Exchange from Jul 4 to 12 pm on Jul 8, the last full trading day before the offer announcement.
The Catalist-listed company called for a trading halt during the midday break on Jul 8, after experiencing a significant surge in trading volumes in the morning.
V2Y said it believes the proposed placement will increase capital resources available to the company, with net cash proceeds of about S$1.9 million.
It intends to use 54 per cent of this for expansion via mergers and acquisitions, joint ventures, partnerships and investments, while the remaining 46 per cent will be used for general working capital.
Assuming the subscription had taken place on Dec 31, 2023, the company’s FY2023 net tangible per share would have been S$0.0035 as opposed to a loss of S$0.0004.
Loss per share for the fiscal year would have been S$0.0019 rather than S$0.0026, had the transaction been completed on Jan 1, 2023.
The company was known as Synagie before it was renamed in 2020, following the disposal of its e-commerce business.
Its core insurtech business segment is mainly focused on the general insurance market and device protection in Singapore, covering smart watches, mobile phones, tablets and laptops.
