iFAST points to PCCW Solutions deal and Malaysia digital bank bid for share price surge

Hong Kong currency notesHong Kong currency notes

Wealth-management fintech platform iFAST pointed to two recent announcements as possible explanations for the around 13 percent surge in its share price this week.

That was in response to a query from SGX to explain the stock’s rise from Friday’s close at S$8.22 to Wednesday’s close at S$9.33 amid strong volume.

iFAST noted that in January, it announced it participated in PCCW Solutions’ successful tender for the eMPF Platform project, with the Singapore-listed company the prime subcontractor for “category C,” which includes Mandatory Provident Fund (MPF) scheme operation services, transformation services and user-delivery services.

The eMPF platform is intended to standardise and automate MPF scheme administration in a move to lower fees and create a largely paperless system.

“In recent months, the group has been engaging in discussion with industry players as part of its preparatory work for the project. 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,” iFAST said in its reply to SGX.

iFAST said it expects to give guidance for growth in its Hong Kong business for 2023-24 by the end of the year.

In addition, iFAST pointed to its lead position in a consortium applying for a digital bank license in Malaysia.

iFAST, which had S$14.45 billion in assets under administration as of end-2020, said it wasn’t aware of other possible explanations for the trading.