LONDON, UK: Fintech Asia (LON:FINA) an investment company established to acquire businesses focused on improving the delivery and use of financial services in Asia, announce intention for the company’s shares to be admitted to the Standard Listing segment of the Official List and to trading on the Main Market of the London Stock Exchange.
Highlights
| • | Fintech Asia was incorporated on 28 May 2021 to undertake the acquisition of one or more companies or businesses in the Fintech sector, that offer new technologies that seek to improve and automate the delivery and use of financial services, primarily targeting the Asia-Pacific region. |
| • | Trading in the Company’s shares on the London Stock Exchange is expected to commence on or around 15 September 2022. |
Background
Fintech describes the ecosystem of companies that apply technological innovation such as data and analytics, software, artificial intelligence or mobile technology to disrupt and/or improve the financial services industry. These companies can be existing financial or technology firms developing in this area, or companies specifically created to focus on financial technologies.
Technological transformation is changing many aspects of how people live and work, in particular financial services. Innovations in financial technology like mobile banking, digital payments and blockchain are taking us into a new era of disruption.
The global fintech market was estimated to be worth US$127 billion in 2018 and it is anticipated to grow at a CAGR of 24.8% reaching a market value of US$310 billion by 2022, according to a white paper by Infobip.
Acquisition Strategy
The Company has been formed to undertake acquisitions of target companies or businesses in the Fintech sector. Fintech Asia does not have any specific acquisitions under consideration and does not expect to engage in substantive negotiations with any target company or business until after Admission. Consideration for an acquisition is likely to be funded through a combination of the issuance of new ordinary shares or convertible debt securities to the shareholders of the acquisition as well as through capital raised on Admission.
The Directors expect that the target business will have a Fintech related business model which will allow it to expand globally. While there is no restriction as to the geographical location of the target business, the Directors expect that the first acquisition(s) will likely target a business in the Asia-Pacific region or businesses with the potential to expand quickly into the Asia-Pacific region, due to the extensive experience and network of the Company’s CEO, advisors, and key management personnel.
The acquisition may comprise of the acquisition of a single company or business, or a series of acquisitions by way of a “roll-up” strategy whereby the Company acquires and merges several businesses in a particular sector. The benefits of this strategy include the reduction of total overhead costs, leveraging a diverse client base, speed to enter new markets and possibly having a wider geographical reach.
It is envisaged that the Company will seek to acquire target businesses which have one or more of the following key characteristics:
| • | a strong Fintech related product, technology or service; |
| • | an experienced management team that has a proven track record; |
| • | growth potential beyond its home market, ideally with the potential to expand globally; |
| • | a solid reputation with their customers / clients; and |
| • | shareholders who are willing to accept ordinary shares or other securities in the Company as a significant part of the consideration for their businesses. |
The Directors will also consider investing into start-ups if some of the above criteria are met, particularly if the management team is experienced and has a strong network.
Oliver Fox, CEO of Fintech Asia, said: “I am delighted to announce the plans to list Fintech Asia on the London Stock Exchange. We believe there are attractive long term acquisition opportunities in our chosen sector. We plan to use Fintech Asia as a vehicle to acquire one or more exciting businesses in these areas in order to generate attractive returns for our shareholders.”
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