iFAST Corporation Announces Strategic Acquisition of 30% Stake in Financial Alliance Corporation Limited

Date: 5 January 2026

Key Highlights

• Transaction: iFAST Corporation Ltd. (“iFAST”) has entered into a conditional agreement to acquire a 30% stake in Financial Alliance Corporation Limited (“FACORP”) for a total consideration of S\$19,575,000.
• Valuation: The acquisition price represents a Price-to-Earnings (P/E) ratio of approximately 16x for FY2025 and 12x for FY2026, indicating expectations of earnings growth and profitability at FACORP.
• Funding: The purchase will be funded through a mix of internal resources and external borrowings, demonstrating iFAST’s confidence in its financial position and ability to leverage for growth.
• FACORP & Subsidiaries:
  • FACORP is the holding company of Financial Alliance Pte Ltd (“FAPL”), a leading Singapore-based financial advisory firm with over 450 representatives.
  • FAPL is a licensed Financial Adviser and Capital Markets Services Licensee with a longstanding profitable track record.
  • FACORP is also the majority shareholder of FA Advisory Sdn Bhd, a licensed Financial Planning and Advisory Firm in Malaysia, expanding iFAST’s reach in the region.
• Strategic Rationale: The acquisition positions iFAST to enhance its wealth management capabilities, deepen collaboration between its digital wealth platform and B2B financial advisory business, and lay a scalable foundation for future expansion.
• Industry Opportunity: iFAST views the financial advisory industry in Singapore as having substantial growth potential, and FACORP is seen as a leading non-insurance company-owned player poised to benefit from ongoing industry consolidation.
• Potential Listing: FACORP has the potential to pursue a public listing in the next two to three years, which could further unlock value for iFAST and its shareholders.
• Regulatory Approvals: Completion of the transaction is subject to the approval of regulatory authorities, including the Monetary Authority of Singapore, Bank Negara Malaysia, and Securities Commission Malaysia.
• Financial Impact:
  • The net asset value of the assets being acquired is approximately S\$13 million; iFAST’s 30% share amounts to S\$3.9 million.
  • The transaction is not expected to have a material impact on iFAST’s earnings per share (EPS) or net assets per share for the financial year ending 31 December 2026.
  • However, it is expected to be earnings and EPS accretive, based on normal operational performance.
• Shareholder Interests: No directors or substantial shareholders of iFAST have any direct or indirect interest in the transaction beyond their existing shareholdings or directorships.

Potential Share Price Impact & Investor Considerations

• The acquisition signals iFAST’s commitment to scaling its wealth management and advisory business, likely strengthening its competitive position in Singapore and Malaysia.
• The strategic investment in a high-performing, fee-based advisory firm could positively influence iFAST’s future earnings and growth prospects, potentially supporting share price appreciation over the medium term.
• FACORP’s potential IPO within the next two to three years represents a possible future value unlocking event for iFAST shareholders.
• Investors should monitor the progress of regulatory approvals, as these are conditions precedent for the completion of the deal.
• While not immediately material to EPS or net asset value for FY2026, the accretive nature of the deal and synergy potential could become more significant in subsequent years.
• The deal, though classified as a non-discloseable transaction under SGX rules due to its relative size, reflects strategic intent and could be price sensitive if synergies and future growth materialise as expected.

Conclusion

The proposed acquisition by iFAST Corporation Ltd. of a 30% stake in Financial Alliance Corporation Limited is a strategic move to cement its position as a major player in the regional wealth management and financial advisory industry. With FACORP’s proven profitability, strong market presence, and potential listing in the near future, iFAST stands to benefit from enhanced scale, operational efficiency, and expanded adviser support. Investors should keep a close watch on further developments, regulatory approvals, and integration outcomes, as these will be key drivers of future value.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any security. Investors are encouraged to conduct their own research and consult a qualified financial adviser before making investment decisions. The information herein is based on publicly available documents and may be subject to change as further details emerge.

View IFAST Historical chart here