Why the Fatfish (ASX:FFG) share price is rocketing 38% higher today

This small cap is having a very strong finish to the week…

| More on:
Iluka share price 3D white rocket and black arrows pointing upwards

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 has returned from its week-long suspension with a bang.

In early trade, the technology venture company's shares were up as much as 38% to 10.5 cents.

The Fatfish share price has since eased back but remains up 18.5% to 9 cents at the time of writing.

Why is the Fatfish share price zooming higher?

The Fatfish share price is zooming higher today after the company announced an agreement to acquire BNPL Next for a consideration of A$4.14 million.

The release explains that BNPL Next is a holding company that aims to provide various corporate and consumer financial services in the South East Asia market.

The company also owns a 60% interest in Circopay, which is an Earned Wage Access (EWA) solutions provider allowing employees early access to earned wages. It has raised just over A$1million in funding and secured credit lines of A$5 million to facilitate its EWA services.

Management notes that the Circopay business is in an early growth phase and therefore it is not able to quantify the revenue income for Fatfish as a proposed 60% shareholder. If and when the revenue impact of the Circopay business can be responsibly determined, Fatfish will make further disclosure to the market at that time.

Why acquire BNPL Next?

According to the release, management believes the acquisition of BNPL Next fits into its strategy to invest in and build on emerging global technology trends in digital financing needs. This is especially the case given its existing plan to roll out buy now pay later (BNPL) services across Southeast Asia.

In addition to this, it believes the EWA market is an attractive place to be. This is due to its "win-win nature for both employees and employers."

Another positive it sees from the deal is the first-mover advantage it gives the company. It notes that as one of the pioneer EWA service providers in Southeast Asia (where a large proportion of the working population have comparatively lower income as well as limited access to financial services), Circopay is poised to capitalise on its first-mover advantage within the region.

Despite today's strong gain, the Fatfish is down a whopping 79% from its 52-week high.

James Mickleboro does not own any shares mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Share Gainers

A young boy wearing a hat, sunnies and striped singlet looks fierce and flexes his arm in victory.
Share Gainers

Here are the top 10 ASX 200 shares today

It was certainly a day to remember for ASX investors this Friday...

Read more »

Three girls compete in a race, running fast around an athletic track.
Share Gainers

Do you own the 3 best performing ASX 200 shares of FY 2025?

The top three ASX 200 shares have already gained 13% to more than 20% in FY 2025!

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Share Gainers

Why Immutep, Kingsgate, Netwealth, and Ora Banda shares are storming higher

These shares are ending the week with a bang. But why?

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors enjoyed a day to remember this Thursday...

Read more »

Man pointing at a blue rising share price graph.
Share Gainers

3 ASX All Ords shares rocketing over 10% today

Investors are buying these shares with fever today.

Read more »

rocket taking off indicating a share price rise
Share Gainers

Why did this ASX mining stock just explode 203%?

Investors are sending the ASX mining stock to the moon on Thursday. But why?

Read more »

two men smiling with a laptop in front of them, symbolising a rising share price.
Share Gainers

Why Ora Banda, Paladin Energy, Seven Group, and Telix shares are charging higher

These shares are shining brightly on Thursday. But why?

Read more »

A woman wearing a black and white striped t-shirt looks to the sky with her hand to her chin contemplating buying ASX shares today as the market rebounds
Share Gainers

Would I be crazy to buy DroneShield shares now at over $2?

After soaring more than 700% in a year, can DroneShield shares keep flying high?

Read more »