Why did PEXA Group shares shoot 18% higher today?

What a day for this ASX small-cap stock!

PEXA Group Ltd (ASX: PXA) shares flew 18.1% higher to a three-year peak of $15.30 in intraday trading on Thursday.

PEXA Group shares were the fastest risers of the S&P/ASX 200 Index (ASX: XJO) today.

The share price surge followed an announcement by the online property exchange platform provider this morning.

Let's take a look.

Man pointing at a blue rising share price graph.

Image source: Getty Images

PEXA Group shares soar to a 3-year high

PEXA Group announced that its United Kingdom subsidiary and NatWest bank have formally committed to an implementation program.

This is the first implementation program agreement that PEXA Group has achieved with a Tier 1 lender in the UK.

The program will enable NatWest to settle future remortgage and sale and purchase transactions on PEXA's platform.

This will mean increased speed and certainty for the processing of digital remortgage transactions for UK homeowners.

It will also allow NatWest to offer a wider range of digital property transactions through PEXA's sale and purchase functionality.

PEXA management noted that this engagement marks a key milestone in the strategic partnership between PEXA and NatWest.

The company also said it represents an important step in its journey towards executing on its strategic goals in the UK.

The implementation program should see remortgage transactions commence in the first half of calendar year 2026.

Sale and purchase transactions will commence at some point after that.

In a statement, PEXA Group said the commencement of transactions was subject to the completion of industry standard due diligence procedures and final terms and conditions.

PEXA Group also intends to launch its sale and purchase solution to the wider market before the end of calendar year 2025.

The company estimates that its platform has the capability to support more than 70% of property transactions in England and Wales.

What did management say?

Russell Cohen, CEO and Group Managing Director of PEXA, commented:

In this next step of our partnership, we look forward to working with them to digitise the property transaction process to deliver an enhanced customer experience.

This important milestone strengthens our collaboration with leading UK bank NatWest.

I would like to thank the PEXA UK team and the broader PEXA Group for their dedication and hard work towards digitising the property transaction process for the UK market, as currently enjoyed by our customers in Australia.

PEXA Group share price snapshot

The Pexa share price closed at $15.09, up 16.53% for the day.

The PEXA Group share price is up 16% in the year to date and up 9% over the past 12 months.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended PEXA Group. 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 Scott Phillips.

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