Why the Fatfish (ASX:FFG) share price is jumping today

The Fatfish Group Ltd (ASX: FFG) share price is on the rise today as the company increases its stake in a buy now, pay later (BNPL) provider.

| More on:
rising asx share price represented by smiling fat fish

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

The Fatfish Group Ltd (ASX: FFG) share price is jumping out of the water today. At the time of writing, shares in the tech investment company are trading at 12 cents – up 4.35%. By comparison, the All Ordinaries Index (ASX: XAO) is currently just 0.35% higher.

Today's price gains come as the company announced an increased stake in a buy now, pay later (BNPL) provider.

Let's take a closer look at today's developments.

Fatfish gets fatter

In a statement to the ASX, Fatfish announced it was "raising its stake in the Singapore BNPL provider [Smartfunding] to 89.4% from 78.7% earlier." Fatfish Group will now own 39.95% of stock directly and its Swedish subsidiary, Abelco, owns a 49.4% stake. Fatfish bought the extra shares under a rights issue worth $300,000.

As Smartfunding is headquartered in Singapore, Fatfish needed to seek the permission of the Singapore Central Bank to increase its ownership of the company under Singaporean law. The Central Bank subsequently gave its approval for the purchase.

Smartfunding is a fintech platform licensed by the Monetary Authority of Singapore. It recently launched a BNPL platform for small and medium enterprises throughout Southeast Asia.

The increased investment is going down well with investors, judging by today's Fatfish share price moves.

Speaking on the news, Fatfish CEO Kin W. Lau commented:

Smartfunding is pioneering the BNPL service for SMEs in Southeast Asia. By increasing our direct stake in Smartfunding, we will be in a stronger position to drive the business forward and to provide Smartfunding with all the support it needs to succeed.

This is not Fatfish's first foray into the BNPL industry. It recently announced the acquisition of Malaysian BNPL provider, Forever Pay.

Fatfish share price snapshot

Over the past 12 months, the Fatfish share price has increased by a massive 1,025%. It is, however, around 74% lower than its all-time high of 43 cents a share. The record was briefly achieved in intraday trading on 17 February this year, with the company's shares ending that day at just 18 cents. This also followed huge gains in the value of Fatfish shares during the prior day's trading session. 

Fatfish has a current market capitalisation of around $108 million.

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. 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 Technology Shares

Man pointing at a blue rising share price graph.
Technology Shares

Why this high-flying ASX defence stock is surging again today

The ASX defence stock is on another tear today. But why?

Read more »

two computer geeks sit across from each other with their laptop computers touching as they look confused and confounded by what they are seeing on their screens.
Technology Shares

'Signs of rotation' from ASX tech shares to value stocks and cyclicals: expert

Tech shares shone brightly in FY24 but will this trend continue in FY25?

Read more »

man on his phone in front of all his computer screens checking the market and the ASX 200
Technology Shares

Can WiseTech shares crack the $100 mark again?

This ASX broker expects WiseTech to return to a three-digit share price...

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Technology Shares

DroneShield share price sinks 13% on half year update

How did DroneShield perform during the first half? Let's find out.

Read more »

A man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.
Technology Shares

It's time to buy this ASX tech stock: Bell Potter

Why is the broker feeling bullish about this stock? Let's find out.

Read more »

A woman looks quizzical while looking at a dollar sign in the air.
Technology Shares

Are DroneShield shares still fundamentally expensive now?

DroneShield shares still look expensive, but the growth is there...

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Technology Shares

Should we be worried about a Nasdaq stock market crash?

The tech sell-off has seen the Nasdaq plunge 3.4% in two days. Now what?

Read more »

A group of six work colleagues gather around a computer in an office situation and discuss something on the screen as one man points and others look on with interest
Technology Shares

Buy this fantastic ASX 200 stock following the tech selloff

Bell Potter thinks that investors should snap up this stock while they can.

Read more »