SGX RegCo has issued a "trade with caution" warning on Digilife Technologies BAI .
The technology service and solution provider saw its shares climb steadily from $1.12 on Jan 6 to $2.88 on Apr 11, representing an increase of $1.76 or 157%. The Straits Times Index (STI) rose by 21.11 points to 0.64% during the same period.
In particular, SGX highlighted that shares in Digilife rose $1.08 or 60% to $2.88 from $1.80 between Mar 1 and Apr 11, with Digilife’s share buyback account contributing about 70.6% of the buy volume for the stock.
As a result of this, its market capitalisation rose by about $14.3 million to reach $38.6 million on Apr 11, above its latest announced net asset value of $30 million as at Dec 31, or $2.321 per share.
On April 12, the same day the "trade with caution" warning was issued, Digilife disclosed that it has bought additional 2,600 shares at $2.86. This brings the total bought back under the current mandate to 114,900 shares.
The company has a base of 13.52 million shares as at Dec 31 2022.
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Digilife underwent a name change with effect from May 6. It was previously known as Sevak, which was earlier served with a similar "trade with caution" alert issued on Jan 31, 2019 in relation to trading activities by its share buyback account.
SGX RegCo says it is reviewing and monitoring trades in Digilife shares and will take all necessary actions including referring the case to statutory authorities where warranted.
The company's controlling shareholder is chairman Bhupendra Kumar Modi, who, according to filing on April 4, holds 57.03% of the shares.
Shares in Digilife closed at $2.86 on Apr 12.
