The company yesterday completely subscribed to Application Hosting's capital-increase shares, raising its registered capital from Bt11 million to Bt23 million as part of its plan to hold a 75-per-cent stake, Dragon One CEO Jrarat Pingclasai told reporters on the sidelines after that company's shareholders' meeting.

Dragon One is to own the entire stake in Application Hosting later.

Dragon One's shareholders resolved for the company to acquire Application Hosting. The acquisition is crucial for Dragon One to qualify to keep its listing status, after it transferred all of its assets, liabilities and business operations to Diana Convenience Store, which later sold out to another investor.

Jrarat said the sale of the company's 200 million capital-increase shares would be postponed, as requested by foreign investors.

"The recapitalisation plan will be slowed down, because foreign investors have lost confidence in Thailand's political situation," he said.

He earlier expected the newly issued shares would be sold out, due to strong demand from foreign and local fund managers. The company will allocate 200 million shares at a price not less than Bt2.50 apiece, well above the market price of Bt1.65.

Commenting on the controversial issue of whether Dragon One should have a silent period, he said the company would soon discuss the issue with the SET and the Securities and Exchange Commission.

He insisted that a silent period - an interval during which major shareholders are prohibited from selling their shares - should not be applied to Dragon One's case, because the company listed in the stock market through back-door listing regulations.

Dragon One recently took over the financially ailing Diana Department Store. The SET earlier said it preferred major shareholders of Dragon One to have a silent period, in order to build investor confidence that they intend to invest in the company for the long run.