iFAST share price gunning for $10?

Lifetime Membership Is SGX truly dead and buried? Many people claim that SGX is in a complete state of moribund. Apart from the 3 local bank stocks, many of the SGX stocks have been in insipid forms for the past two years, no thanks to the US Federal Reserves interest rate hikes. Everyone is looking for the next super-hero of SGX, one that could capture the imagination of SGX investors, like what AEM did in 2021.

Against this backdrop, investors must be holding their breath when iFAST share price seemed to return to form in February 2024 after hitting a high of $8.35. Will iFAST share price enjoy another fairy-tale run in 2024?

For background, iFAST Corp is a global digital banking and wealth management platform, with assets under administration (AUA) of $20.0 billion. Incorporated in the year 2000 in Singapore, iFAST Corp is also present in Hong Kong, Malaysia, China and UK. The Group offers access to over 21,000 investment products including unit trusts (“funds”), bonds and Singapore Government Securities (“SGS”), stocks and exchange traded funds (“ETFs”), and insurance products. It also provides services such as wealth management solutions, banking services, research and investment seminars, Fintech solutions, pension administration and investment administration and transaction services to financial advisory (“FA”) firms, financial institutions, banks, Fintech and Internet companies, as well as retail customers and high net worth (“HNW”) investors.

iFAST share price became stuff of legend in SGX when the counter rocketed from $1.00 in 2020 to an incredible high of $10 in 2021. The mind-blowing form of iFAST share price certainly took the local investment community by storm and created plenty of wealth for many investors back then. Subsequently, a series of events combined to send iFAST share price in a bizarre journey of heaven and hell.

iFAST share price was actually in so-so form during 2020. Yes, the business performance was given a lift as many investors were working from home. Unable to travel due to borders’ restrictions, there were also plenty of opportunities for retail investors to capitalize on the market corrections during that period. As a result, iFAST’s Asset under Administration (AUA) rose from $14.45 billion in FY2020 to $19 billion in FY2021. In light of the improving business performance, iFAST share price did increase, albeit at a decent pace.

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What truly propelled iFAST share price were the media reports in late 2020 alleging iFAST was on the verge of securing a Hong Kong ePension project. Upon SGX’s query, iFAST admitted that it was involved in the tender but was not yet being awarded the project by the Hong Kong government. Nonetheless, the response from the management sent iFAST share price soaring more than three-fold to hit a high of $3.90 in December 2020.

But apparently, good times don’t last. At least for iFAST share price. On 7 December 2020, iFAST share price plunged to $2.70 following the Group’s failure to secure a digital wholesale bank (DWB) license from Monetary Authority of Singapore. The ill-fated project had unexpectedly punctured the form of iFAST share price but not for long as iFAST share price recovered to continue its spectacular rally in 2021.

Investors of iFAST would then mark down 30 January 2021 as the day that iFAST took SGX by storm as iFAST officially announced that it “participated in successful tender for eMPF Platform Project”. Since that fateful announcement, iFAST share price confounded all analysts and investors and went on a rampage to hit nearly $10 in September 2021.

However, the bullish form of iFAST share price did not sustain as the Group stunned investors with the shock acquisition of a UK Bank – BFC Bank – in January 2021 for $73.3 million. To support the acquisition of BFC bank, the Group issued 14 million placement shares at $7.50 to raise $105 million. Following the shares placement, the share price bombed out to a low of $6.13 on 28 January 2021.Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in iFAST before. Whether iFAST share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.

iFAST share price to fulfil its destiny

Looking back, the reason for the management to acquire BFC Bank must be for hedging purpose. This is because the Group subsequently announced on [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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