Why the Fatfish (ASX:FFG) share price is up 74% today

The Fatfish share price is flying today as the company announced its response to an earlier speeding fine. We take a closer look.

| More on:
Man drawing illustration of a big fish eating a little fish representing a takeover or acquisition.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Fatfish Group Ltd (ASX: FFG) shares are storming higher today after its investee iCandy Interactive Ltd (ASX: ICI) announced the sale of its digital iCandy platform. At the time of writing, the Fatfish share price has surged an astounding 73.58% higher to 9.2 cents.

The company received a speeding ticket and was placed in an enforced trading halt late on Friday but resumed trading at 12:13 pm today to continue its recent run.

Why is the Fatfish share price flying?

The Fatfish share price is skyrocketing today as the company released its response to the ASX price query.

Fatfish was asked if it was aware of any information that may be driving the share price up, to which it responded that it was not. However it did note the recent announcement by iCandy regarding the sale of a subsidiary.

Moreover, Fatfish suggested the strong recent rise in its share price may be as a result of the recent strong performance of buy now, pay later (BNPL) shares generally. For example, both IOUpay Ltd (ASX: IOU) and Zip Co Ltd (ASX: Z1P) shares have been storming higher in recent sessions. To this point, on 3 February, Fatfish announced that its Singaporean based investee company, Smartfunding, had completed the development of its online BNPL platform. It launches on 13 February.

iCandy sale

As mentioned, also announced today was the sale of iCandy Digital for $4.8 million to Rightbridge Ventures. This is noteworthy as Fatfish has a 50.1% ownership of the company through its interest in Abelco Investments Group. Complicated as it is, Fatfish also has a 33% interest in iCandy.

However, as the transaction does not result in any material change in Fatfish' interest in iCandy, the information should theoretically have no material effect on the Fatfish share price. 

Rightbridge is a Swedish company that is looking to execute an initial public offering (IPO) in 2021. Its core business is investing in companies that shape the future of e-sports and videogames as part of the global digital entertainment industry.

When the transaction is complete, Fatfish will become a major shareholder in the listed shares of Rightbridge. It's worth noting, the deal still requires shareholder approval.

About the Fatfish share price

Fatfish is a global tech venture investment and development firm. It partners with entrepreneurs to help them build and grow internet businesses via a co-entrepreneurship model. Among the company's investments is, as mentioned, Abelco, which is invested in the cryptocurrency and blockchain ventures Minerium and Kryptos-X.

The Fatfish share price is up a remarkable 820% in the last year.

Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A young man in a city street with a hopeful look on his face.
Share Market News

Here are the top 10 ASX 200 shares today

It was a return to form for ASX 200 shares this Thursday.

Read more »

Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices
Broker Notes

Morgans names 3 ASX stocks to buy following results

Here are three stocks that Morgans is feeling bullish on this week.

Read more »

A man stands in a building site featuring brick walls with building equipment in the background.
Mergers & Acquisitions

CSR share price jumps again as blockbuster bid confirmed

Investors are excited about a potential takeover.

Read more »

A man and woman sit next to each other looking at each other and feeling excited and surprised after reading good news about their shares on a laptop.
Share Gainers

Why Bega Cheese, Domino's, Lovisa, and Universal Store shares are rocketing today

These ASX shares are catching the eye on Thursday. But why?

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Share Fallers

Why Clinuvel, Medibank, Sayona Mining, and Tabcorp shares are sinking today

These ASX shares are out of favour with investors on Thursday. But why?

Read more »

rising asx share price represented by drone flying in the air
Technology Shares

How has the DroneShield share price gained 90% in a month?

DroneShield shares are once again at a new record high today.

Read more »

Woman smiles at camera at she buys greens from the supermarket.
Broker Notes

Are Woolworths shares dirt cheap following the selloff?

Is now the time to pounce? Let's see what one leading broker thinks.

Read more »

A bored woman looking at her computer, it's bad news.
Share Market News

Sayona Mining share price crashes 19% after Piedmont Lithium says sayonara

This lithium miner's shares are taking a beating on Thursday.

Read more »