iFast seeks Greater China investors to grow business
Annabeth Leow
Singapore
IFAST Corp could see its stake in its Greater China business diluted by 15 per cent, with the wealth management firm now looking for investors.
It plans to use the potential proceeds to grow its business in Hong Kong and mainland China, such as through a planned virtual banking business in Hong Kong, the board said on Tuesday. iFast had earlier disclosed that it has applied for a virtual banking licence in that territory.
The move to enlarge the share capital of iFast Hong Kong Holdings and iFast China Holdings would see iFast's Hong Kong subsidiaries restructured, to be held directly under iFAST Hong Kong Holdings.
"The proposed investment is expected to be done at above book value of the Greater China business and this is estimated to bring about a positive effect on the group's net tangible assets," the board said.
It added that the proposed investment would have raised the group's FY2017 net profit of S$9.04 million by some S$340,000 had its interest in the Greater China business been diluted by 15 per cent at the start of the year.
PricewaterhouseCoopers Corporate Finance was appointed lead financial adviser in the hunt for institutional and/or other investors.
iFast's board added in a cautionary statement: "There is no certainty or assurance as at the date of this announcement that the group will be awarded the virtual banking licence or that the proposed investment will be successful and completed."
iFast closed up by S$0.01, or 0.89 per cent, to S$1.13, before the news.
