Can iFAST Soar Higher for 2022?
Here's what you need to know about iFAST's latest acquisition on a UK digital bank: BFC Bank. And whether it's a good deal for investors.
I find it odd.
That this quiet Singapore financial firm is buying over a major UK bank.
But I can understand why they are doing this.
iFAST Corporation (SGX:AIY) announced it will buy over an 85% stake in a little-known bank called BFC Bank Limited from BFC Group (that’s based in Bahrain). And iFast plans to raise S$75 million in a private placement to fund the purchase.
A private placement is allows a company to sell additional shares to a pre-selected group of investors, to raise money in the stock market.
The higher the share price, the more beneficial for the company to do a private placement.
What struck me was the huge geography mismatch. iFAST’s main business is in Asia, while the acquisition is in Europe’s biggest financial centre.