Online brokerage firm iFast – Singapore’s best-performing stock over the past year – hit a record high on Monday, pushing the market cap of the company to about S$2.8 billion (US$2.07 billion) during trading hours.
Photo credit: iFast
The company’s stock jumped by 7.5% in the past week to reach S$10.1 (US$7.47), triggering a trading query from the Singapore Exchange. The surge in its share price may have been a result of high investor confidence in the company, boosted by potentially “strong” growth prospects in Hong Kong, iFast said.
Founded in 2000, iFast is a wealth management platform that initially focused on the business-to-consumer segment, providing self-directed investors with research and easy access to mutual funds through its Fundsupermart.com brand. Since then, it has expanded to other segments including business-to-business and B2B2C.
In July, iFast signed a contract to be the prime subcontractor for a pension project in Hong Kong, which will have a “very material” financial impact on the company from 2023 and beyond. However, it didn’t disclose the deal value of the contract and its impact on the bottom line.
The Hong Kong project deal comes after the company participated in the tender for the eMPF platform project (mandatory provident fund) with PCCW Solutions. Under the project, iFast will serve as the prime subcontractor for a category that includes MPF scheme operation services, transformation services and user delivery services.
The eMPF platform aims to streamline and automate the MPF scheme administration processes, creating room for fee reduction and a predominantly paperless experience.
See also: IFast could be Singapore’s most underrated public internet company
Along with the release of its third quarter results, which is likely to be announced next month, iFast aims to provide a forecast on the potential of growth for its overall Hong Kong business from 2023 to 2024 and onwards.
Over the past year, iFast has seen its share price soar by over 400%, fueled by strong revenue and profit growth. The company was one of nine applicants shortlisted by the Monetary Authority of Singapore to progress to the next stage of assessment for a digital wholesale bank license.
Currency converted from Singapore dollar to US dollar: US$1 = S$1.35.
Editing by Samreen Ahmad and Eileen C. Ang
(And yes, we’re serious about ethics and transparency. More information here.)
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
