KUALA LUMPUR (Sept 4): IFCA MSC Bhd rose as much as seven sen or 10% on news of the software entity's RM32 million acquisition of PT IFCA Consulting Indonesia (PICI).

IFCA signed a business sale agreement with PICI for the acquisition, which would be equally financed with new IFCA shares and cash. IFCA said the acquisition would accelerate its expansion into Indonesia.

According to IFCA, the purchase was timely, as PICI has an established track record as the group's sole distributor in Indonesia for the past ten years.

Today, shares of IFCA rose to its highest so far today at 78 sen. At 12:30pm, IFCA shares pared gains to settle at 73.5 sen, for a market capitalisation of RM410.87 million.

The stock saw some 76 million shares traded.

At IFCA's current share price, the stock may still have room for further gains, based on analysts' target price (TP) for the shares.
 
In a recent note, CIMB Investment Bank Bhd maintained its "add" call on IFCA shares, with a TP of RM1.32.

“The stock remains an add and potential catalysts include concluding the Indonesia distributor acquisition and the successful implementation of its e-commerce platform,” CIMB said.