ManagePay Systems shares down 9% after failing to secure digital banking licence

ManagePay Systems shares down 9% after failing to secure digital banking licence
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KUALA LUMPUR (May 5): Shares of ManagePay Systems Bhd (MPay), a fintech and payment solution enterprise, fell as much as 8.57% to touch an intraday low of 16 sen during the morning session after failing to secure a digital banking licence from Bank Negara Malaysia (BNM).

In a bourse filing on Thursday (May 5), MPay said its application, which was supported by strategic partners, was not one of the successful applicants for a digital bank licence.

"MPay wishes to thank the authorities, our strategic partners and the consultant for their time and efforts in this application," it added.

Last Friday (April 29), BNM announced the five successful applicants for the digital bank licences, which included the consortiums of Boost Holdings Sdn Bhd and RHB Bank Bhd; GXS Bank Pte Ltd and Kuok Brothers Sdn Bhd; Sea Ltd and YTL Digital Capital Sdn Bhd; AEON Financial Service Co Ltd, AEON Credit Service (M) Bhd and MoneyLion Inc; and one led by KAF Investment Bank Sdn Bhd.

In July last year, MPay announced that its wholly-owned subsidiary ManagePay Services Sdn Bhd on June 30, 2021 submitted an application for a digital bank licence to the central bank, supported by three bumiputera-controlled strategic partners — Trustgate Bhd, Crescent Capital Sdn Bhd and RichWorks International Sdn Bhd.

Investment and strategic consulting firm Crescent Capital was founded and is headed by Tan Sri Mirzan Mahathir, a son of former prime minister Tun Dr Mahathir Mohamad, while RichWorks International was founded by businessman Datuk Wira Azizan Osman.

MPay shares have fallen 23.81% year to date to settle at 16 sen at noon market break on Thursday, valuing the group at RM133.99 million.

Kang Siew Li