Afterpay Surges 24pc Following Stake Sale To China’s Tencent
SYDNEY: Shares in Melbourne-based Afterpay leapt almost 24 percent on the ASX yesterday, following the weekend announcement that Chinese giant Tencent has acquired a five percent interest in the Australian company, which offers shoppers across the world the opportunity to split payments for major purchases of goods into four instalments spread over some months.
The shares, which had been trading around the $29 mark, leapt 35 percent to $40 in early trading, but then dropped back to a 23.8 percent mark-up, closing at $36.10.
Some market watchers were predicting a move by Afterpay into the Asian market, including China, by AfterPay, though Afterpay did not comment on this, and RBC analyst Tim Piper stressed that an Asian move is likely to be a longer-term objective by AfterPay.
AfterPay shares yesterday closed at $36.16, up $7 or 24 percent.