The Business Times

iFast attributes share price rise to news of Hong Kong tender and Malaysia consortium

Janice Heng
Published Wed, Jul 14, 2021 · 07:09 PM

RESPONDING to queries from the Singapore Exchange Regulation about unusual price movements in its shares on Wednesday, wealth management platform iFast Corporation cited earlier announcements about a successful tender bid for a Hong Kong project and a consortium application for a digital bank licence in Malaysia.

iFast shares jumped after lunch time on Wednesday to an intra-day high of S$9.65, before closing at S$9.30, up S$0.30 or 3.33 per cent. The stock has been rising steadily since July 8, when it closed at S$8.08.

In its response, iFast said that on Jan 30, it announced its successful participation in the tender for Hong Kong's eMPF (Mandatory Provident Fund) platform. It has been in discussion with industry players in recent months, as part of its preparatory work for the project, it added.

"Although the full contractual terms of the project have not been finalised, the potential benefit that the project is expected to bring the group may be linked to the trading activity, where investors may be anticipating a potential substantial impact on the group's revenue in the years ahead," it said.

By the end of this year, iFast aims to be able to "give some guidance on the potential growth of its overall Hong Kong business for 2023/2024 and beyond".

Another possible explanation is the June 30 announcement that it has led a consortium to apply for a digital bank licence in Malaysia, with iFast to own a 40 per cent stake if the application succeeds, said iFast.

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"The group is not aware of any other possible explanation for the trading," it added.

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