Why Consultancy Firm VCI Global's Shares Are Spiking Up Today

VCI Global Ltd VCIG shares are spiking higher after its financial technology arm, Accuventures Sdn Bhd, agreed to acquire the Malaysian digital platform EVOLET. The financial details of the deal were not disclosed.

The acquisition is expected to provide VCI Global direct access to the local remittance market. EVOLET provides secured financial access and services for the unbanked, amongst others. 

The e-remittance features provided by EVOLET negate the need for the users, in particular foreign workers, to transfer money through less efficient conventional methods.

To date, EVOLET is serving over 13,000 users, from 13 countries, who are working in Malaysia.

In line with the growing e-wallet users in Malaysia, the digital remittances market, with a projected transaction value of RM3.6 billion (approximately $750 million) in 2023, is expected to record a compound average growth rate of almost 11% until 2026.

VCI held $3.3 million in cash and equivalents as of June 30, 2023.

"Post acquisition, we will be able to integrate Credilab which is our AI powered micro financing platform, with EVOLET. This will boost the business considerably by offering financing, primarily targeting the foreign workers in the country," said Dato' Victor Hoo, Group Executive Chairman and CEO.

Price Action: VCIG shares are trading higher by 16.2% at $2.64 on the last check Thursday.