iFast responds to SGX query, cites contract bids, news and industry reports

IFAST has responded to the Singapore Exchange's (SGX) earlier query on its share price movements, saying it has participated in the bidding of projects, including "certain ones in Hong Kong" which may have a material positive impact on its business should they prove successful.

This comes after SGX this morning issued its fourth query to iFast in the past six months, as its stock surged S$0.24 or 5.5 per cent to S$4.59 as at 9.45am on Friday.

In its filing to the bourse on Friday afternoon, the wealth management platform said it is unable to provide any further comments at this point of time due to the projects' confidentiality requirements and uncertainty of their outcomes.

iFast also cited news of its assets under administration growth to S$14.45 billion as at Dec 31, 2020 as a possible explanation for the trading activity on Friday. This is in addition to an initiation research report from Jefferies Singapore issued this week, as well as a research update from CGS-CIMB on the company's business, it said.

Jefferies initiated a "buy" on the counter in a Jan 11 report with a target price of S$3.51. CGS-CIMB maintained its "hold" recommendation on iFast in its latest Jan 13 report, but raised its target price to S$4.15 from S$3.41 previously on expectations of record earnings for Q4 FY2020.

Other than those mentioned above, iFast said it is not aware of any possible explanation for its share price surge, and confirmed its compliance with the mainboard listing rules.

iFast was reported by Bloomberg on Aug 6, 2020, to have been working with telecommunications provider PCCW to bid for Hong Kong's project to digitise its retirement funds system. The group was queried for its share price surge the following day and in its response cited the article as a possible reason for the trading activity, although iFast said it did not provide comments in the report.

Shares of iFast were trading S$0.24 or 5.6 per cent higher at S$4.52 as at 2.52pm on Friday.