iFast not aware of digital banking licence outcome when SGX queried trading activity, Companies & Markets

Sat, Dec 05, 2020 – 5:50 AM

Singapore

IFAST Corporation was not aware of the outcome of the results of the digital banking licence as at Friday afternoon, it said in an exchange filing at 3.09pm in response to a query by SGX.

The mainboard-listed company was later revealed to have not secured the licence, an announcement by the Monetary Authority of Singapore after trading hours showed.

Singapore Exchange Regulation (SGX RegCo) had issued the query earlier in the afternoon in relation to iFast’s trading activity, after it noted “unusual price movements” in the company’s shares.

Shares of the wealth management and brokerage platform soared after the midday break, rising from S$3.67 to S$3.85 at around 1.39pm. At this point, the shares were up 5.5 per cent from the previous close.

In the query issued at 1.57pm, SGX RegCo asked if iFast was aware of any information not previously announced concerning the company that might explain the trading.

If the company was aware, the information should be announced immediately, it added.

iFast said in its response to SGX that there is expectation in the market that the result for the application of the digital bank licence in Singapore will be announced by the end of this year.

“As communicated to shareholders previously, the company is one of the digital wholesale bank applicants,” it said. “The company is not aware of the outcome of the result of the digital banking licence at this point of time.”

SGX RegCo also asked if iFast was aware of any other possible explanation for the trading, such as public circulation of information by rumours or reports. In addition, it asked the company to confirm its compliance with listing rules. iFast said it was not aware of any other possible explanation, and confirmed its compliance with listing rules.

Shares of iFast continued to climb in the afternoon, after it responded to the queries, rising to as high as S$3.95, which was 8.2 per cent above Thursday’s close.

Trading volume was also higher, with around 3.4 million shares changing hands during the day, above the daily average volume of 1.9 million in this quarter.

iFast shares closed at S$3.90 on Friday, up S$0.25 or 6.9 per cent from Thursday.

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