IFAST Corp. raised S$105 million in an over-subscribed placement of 14 million new shares at S$7.50, the top end of the S$7.30 to S$7.50 price range, the Singapore-listed wealth-management platform said in a filing to SGX Tuesday.
The pricing is a discount of around 4.5 percent to the closing price of S$7.85 on 7 January, and a discount of 7.4 percent to the volume-weighted average price (VWAP) of S$8.10 on the same day, the filing said.
The placement to institutional and accredited investors received over S$150 million in total subscription, more than double the deal’s initial base size of S$75 million, iFAST said.
The new shares represent 4.8 percent of iFAST’s enlarged share capital, the filing said.
Lim Chung Chun, chairman and CEO of iFAST, said: “The funds will be used for the proposed acquisition of the U.K. bank which we believe to be a significant milestone in our company’s growth towards building a truly global wealth management business. Additional funds that are raised from this placement exercise will be used for working capital purposes.”
Last week, iFAST said it entered a deal to acquire an 85 percent stake in BFC Bank, which is fully licensed in the U.K. for around 25 million British pounds, or around S$45.9 million from BFC Group. The Singapore fintech said it will also inject around 15 million pounds into the bank.
Lee Thiam Wah, was an anchor investor in the placement, subscribing for S$51 million in iFAST shares, the filing said. Lee is the founder and major shareholder of 99 Speed Mart, one of iFAST’s consortium partners in its application for a Malaysian digital bank license, the filing said.
iFAST has applied for digital bank licenses in Hong Kong and in Malaysia in mid-2021, as part of consortiums. The company was among the bidders for a Singapore digital bank license, but didn’t receive the nod.
CGS-CIMB was the sole placement agent for the deal, the filing said.
Shares of iFAST were down 3.31 percent at S$7.59 at 10:49 a.m. SGT on Tuesday.