Challenger Technologies’ shares jumped on Wednesday (Oct 13) after it said Dymon Asia will spend S$32.8 million to raise its stake in the electronics retailer to 14.9 per cent from 1 per cent. The move comes two years after a failed privatisation bid by Digileap Capital, a vehicle set up by Dymon and Challenger’s controlling shareholders. In the new share deal, Digileap will subscribe for 56.6 million new shares at S$0.58 apiece. The issue price represents a premium of 14 per cent to Challenger’s volume-weighted average price of S$0.50 for trades done on Oct 12, the last full market day before the share subscription agreement was signed. Shortly after the counter resumed trading on Wednesday afternoon, Challenger’s shares rose 12.9 per cent or S$0.065 to a high of S$0.57 as at 1.33 pm – just 1 cent shy of the share subscription price. The counter later closed at S$0.55, up 8.9 per cent or S$0.045. The company had called for a trading halt on Wednesday morning before the market opened. Challenger said it will use half of the net proceeds for strategic investments as well as mergers and acquisitions. The other half will be used for product and business development and business expansion.
Challenger Technologies
