Shares of Singapore clean room equipment firm Kyodo-Allied Industries (KYDA.SI) rose as much as 7.8% on Monday after announcing a planned reverse takeover deal worth $600 million with Chinese property developer Weiye Group.
At 9:37 a.m., Kyodo-Allied shares were up 3.1% at $0.066 on a volume of 11.6 million shares, more than 17 times the average daily volume so far this year.
In comparison, the broader Straits Times Index <.FTSTI> was down 0.9%.
“The market is playing up the shares on the news of the RTO deal, though at this point it's a bit too early to say how good the company is,” said a local trader.
Kyodo-Allied will issue 1.64 billion new consolidated shares at S$0.365 each. Upon the completion of the acquisition, Weiye through its holding company Great Spirit will hold around 83.81% of the enlarged share capital of Kyodo-Allied.
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