iFast cites Bloomberg report after SGX query about its 13% share surge

Singapore

SHARES of mainboard-listed iFast Corporation rose 13 per cent on Friday, prompting queries from the Singapore Exchange (SGX) about the "unusual" price movements.

In its reply to SGX, the wealth management and brokerage platform noted a Bloomberg report that Hong Kong had shortlisted two finalists to digitalise its retirement funds system.

The finalists are a consortium led by Oneconnect Financial Technology and a group led by telecommunications provider PCCW, with the group said to be working with iFast, said Bloomberg's report.

iFast shares hit an intra-day high of S$2.245 at 2.54pm, up S$0.315 from Thursday's close of S$1.93.

They ended the day at S$2.19, up 13.5 per cent or S$0.26, after 6.9 million shares changed hands. ShareInvestor data showed there were no married trades.

The bourse operator on Friday morning asked iFast if it was aware of any possible explanation for the share-price movements. iFast responded during the midday break, citing the Bloomberg article published this week.

It added that it did not provide comments in the media report, and that it may from time to time take part in the bidding for projects or tenders.

"Due to the confidentiality requirements and uncertainty of outcome linked to the bidding of projects or tenders, the group would like to add that it is unable to provide any comments at this point of time," it said.

iFast also noted that the trading in its shares has increased in recent months.

This could be linked to the group's net profit doubling year on year to S$8.2 million in H1 2020, and that its assets under administration hit a new high of S$11.15 billion as at June 30, it said.

iFast reported its latest results on July 23, when chief executive and chairman Lim Chung Chun said that the company was growing its staff size in anticipation of a Singapore digital banking licence, and on "considerable" growth in its business in the city-state.