Shares in iFast Corporation plunged nearly 11% within the first hour of trading on Aug 19 to an intra-day low of $8.63 after its second-biggest shareholder CP Invest sold shares at a 6.7% discount to Monday’s $9.77 closing price.
CP Invest, a subsidiary of Temasek-owned Cuscaden Peak, priced its block trade at $9.12 per share, near the bottom of the marketed range, according to terms of the deal seen by Bloomberg.
According to Bloomberg, CP Invest had priced 14.35 million shares at a 6.7% discount to Monday’s closing price, and the shares were offered at $9.09 to $9.29 each. Morgan Stanley and UBS reportedly arranged the deal.
iFast later confirmed this in an Aug 19 bourse filing.
CP Invest had pared its stake in iFast twice earlier this year. The investment holding company sold 75,000 shares for $559,117.50, or $7.45 apiece, on Jan 2, bringing its stake in the company to 10.99% from 11.01%.
After the release of the digital wealth management platform operator’s results for FY2024 ended Dec 31, 2024 on Feb 12, CP Invest sold 872,700 shares in iFast, netting it some $6.84 million, or $7.83 per share, on Feb 13. Its stake in iFast subsequently fell to 9.95% from 10.24% previously.
See also: iFast confirms CP Invest’s sale of 14.35 mil shares, bringing interest down to 4.9%
Temasek Holdings does not have any direct interest in the shares of iFast. Temasek is deemed interested in the shares through Cuscaden Peak and DBS Group Holdings.
At iFast's results briefing and annual general meeting on April 28, iFast chairman and CEO Lim Chung Chun acknowledged a "perceived share price overhang" after CP Invest pared down its stake. CP Invest had a 9.75% direct interest in iFast as at March 7, according to iFast's latest annual report.
Lim was responding to shareholder questions about a 12% share price plunge despite 1QFY2025 net profit rising 31.2% y-o-y.
See also: iFast earns higher price targets across the board with stronger 2H2025 expected
iFast is one of the top-traded counters so far today, with nearly 18 million shares changing hands over the first hour. Only three other stocks are more actively traded so far: Rex International, Marco Polo Marine and International Cement Group.
As at 10am, shares in iFast are trading 86 cents lower, or 8.8% down, at $8.91.
After today’s decline, iFast shares have risen nearly 20% year to date.
