IOUpay (ASX:IOU) share price halted amid acquisition news

The digital commerce software solution’s company’s shares are on ice this Tuesday.
The post IOUpay (ASX:IOU) share price halted amid acquisition news appeared first on The Motley Fool Australia. –

Shares in fintech and digital commerce company IOUpay Ltd (ASX: IOU) are sat in limbo at the time of writing amid a company-requested trading halt.

Before it was put on the back-burner, the IOU share price was set to open at 18.5 cents, a slight gain from last week’s close.

Let’s take a closer look.

Why is the IOU share price halted?

The company requested a trading halt to be put in place on its shares today, in relation to the acquisition of a 42% interest in I.Destinasi Sdn Bhd (IDSB). IDSB is a provider of consumer credit services in Malaysia.

The trading halt is requested to be in place until the commencement of trade on 2 December 2021 or when that announcement is released to the market.

IOU previously announced the acquisition back in September, where it penned a letter to investors outlining the particulars.

It is set to acquire the interest on a $41.3 million consideration finalised over 2 tranches in a 6-month period. A contingency in the deal could allow IOU to acquire IDSB for less if its pre-tax profit is less than $9.8 million for FY21.

IOU will finance the transaction on an all-cash consideration that will be completed in 50% lots, pursuant with the 2 tranches outlined above.

In a separate release last week, the company also advised that it was waiting for consent from one of IDSB’s banking partners to finalise the acquisition. It appears this may have been finalised judging by IOU’s language today, but the company is yet to confirm in full.

Today’s announcement builds on momentum after the company released its operations update last week. In that report, IOU recognised $3.2 million in total transaction value (TTV) whilst growing its consumer downloads by 67% since September 30.

The company’s operations in Malaysia is performing, securing over 100 merchants operating more than 300 outlets to the myIOU platform during this quarter so far.

It has also deployed staff to grow its base in regional areas outside of the Klang Valley central economic hub which is by Kuala Lumpur and Selangor.

There has been no movement on this update since the ASX announced the trading halt earlier in the session on Tuesday.

IOU share price snapshot

In the last 12 months, the IOU share price has gained almost 9% after rallying another 12% this year to date.

Despite this, it has fallen 26%% in the last month and has collapsed a further 12% this past week alone.

The post IOUpay (ASX:IOU) share price halted amid acquisition news appeared first on The Motley Fool Australia.

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

Before you consider IOUpay, 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 IOUpay wasn’t one of them.

The online investing service he’s run for nearly 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 August 16th 2021

More reading

Why is the IOUpay (ASX:IOU) share price tumbling 7% on Tuesday?

The author has no positions 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!