Why is the Fatfish (ASX:FFG) share price swimming 25% upstream today?

Could the company’s former subsidiary be behind Fatfish’s gains on Thursday?

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Pictured is two gold fish bowls one with six goldfish and one with none and one goldfish is jumping from the full bowl to the empty bowl representing this ASX share breaking away from its peers

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The Fatfish Group Ltd (ASX: FFG) share price is surging higher today despite no news from the company.

However, one of its major investments is readying itself to release what might be exciting news.

At the time of writing, the Fatfish share price is 6.8 cents, 25.93% higher than its previous close.

The broader market is also in the green today. The S&P/ASX 200 Index (ASX: XJO) has gained 0.16% while the All Ordinaries Index (ASX: XAO) is up 0.15%.

Let’s take a closer look at what might be driving Fatfish’s stock higher on Thursday.

Is this why the Fatfish share price has grown wings?

The Fatfish share price is surging today, forcing the ASX to issue the company with a speeding ticket.

In explanation to the ASX’s query, Fatfish stated its gains might have something to do with its former subsidiary, iCandy Interactive Ltd (ASX: ICI).

iCandy is in a trading halt today as it prepares to release news of a major acquisition and capital raise.

The gaming developer was originally a spin off from Fatfish and Fatfish still indirectly holds a 31.9% stake.

While there’s no word from iCandy defining its upcoming acquisition and capital raise, the market seems to be expecting big things.

As The Motley Fool Australia reported earlier today, the company had $7.9 million in the bank as of 30 September. That could suggest the cost of its upcoming acquisition will be more than the company’s other recent purchases.

Additionally, iCandy recently invested $1.59 million into Mighty Kingdom Ltd (ASX: MKL), receiving a 7.78% stake in the gaming developer.

The Mighty Kingdom share price is also soaring today, gaining 26% despite no word from the smaller gaming developer.

iCandy is set to release the defining details of its planned endeavour before Monday’s open. If it doesn’t release an announcement between now and then, its shares will initiate trade as normal next week or the trading halt will be extended.

Whether iCandy’s trading halt is behind the Fatfish share price’s surge today is unclear. However, it seems to be as good a guess as any.

Should you invest $1,000 in Fatfish right now?

Before you consider Fatfish, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Fatfish wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Brooke Cooper has no position in any of the stocks 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.

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