Are speculators driving today’s 44% Ioupay (ASX:IOU) share price gains?

The Ioupay share price is going skywards today, up 44% in late afternoon trading, earning a ‘please explain’ from the ASX.

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Fintech company Ioupay Ltd (ASX: IOU)‘s share price is going skywards today, up 44% in late afternoon trading.

As you’d expect with this kind of price action, the big share price leap earned the company a price query from the ASX earlier today. That query noted that Ioupay’s share price had leapt from a low of 15 cents per share to a high of 23 cents today, a swing of more than 53% at that time, though shares have retraced a tad later in the day.

The ASX also noted a significant increase in the volume of shares trading from 16 October through to today. That comes as the Ioupay share price has rocketed 115% since Thursday’s closing bell to the current 22 cents per share.

If you haven’t heard of Ioupay yet, you’re not alone. The company only listed on the ASX last month, on 21 September. Since listing the share price is up 207%.

For comparison, the All Ordinaries Index (ASX: XAO) is up 7% over that same time.

What does Ioupay do?

Ioupay is a fintech and digital commerce software solutions and services provider. The company’s technology platform enables institutional clients to authenticate end-user customers and process financial transactions securely using any mobile device.

Its 3 business divisions – mobile banking, digital payments, and digital services – service Malaysia’s top 20 banks as well as telcos and other corporations in Malaysia and Indonesia.

How did Ioupay respond to the ASX price query?

Investors hoping for clear insight into today’s initial 53% Ioupay share price leap will be disappointed.

The company replied to the ASX price query saying it was not aware of any explanation for the increased share price that has not been announced to the market. Ioupay did go on to say:

However, it is the view of the Board that shareholders may be speculating on the impact of the 249D Shareholder Meeting being held on 6 November 2020, the Board asserts that it would have an impact on shareholder sentiment and potentially drive the price and volume movements.

We Fools don’t have any insight into what the 6 November shareholder meeting will reveal. But with Ioupay’s 53% speculative share price gains from this morning in mind, we’ll be marking that date on our calendar.

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Returns as of 15th February 2021

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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