MICT Inc. (NASDAQ: MICT) gained 3.66% after its Board of Directors approved a $60 million capital injection to its wholly-owned subsidiary, Magpie Securities. Magpie developed and will run MICT’s online stock trading site from Hong Kong.
Magpies to receive capital from MICT in two tranches
The company will transfer the amount to Magpie in two tranches, with the first $30 million invested in equity. The other $30 million will be in the form of a subordinated loan subject to approval by the Hong Kong Securities and Futures Commission. The capital infusion for the trading platform will support MICT’s growth ambitions.
MICT CEO Darren Mercer said that the $60 million investment in Magpie would appropriately capitalize the firm to support MICT’s ambitious expansion objectives. In addition, Mercer said that it would equally enable to offer competitive margin and IPO funding to its underlying customers with the imminent introduction of a mobile stock trading app.
MICT included in the MSCI USA Index
Recently the company announced that it had been included in the MSCI USA Micro Cap Index, effective as of May 27, 2021. The MSCI USA Micro Cap Index, which measures the performance of the microcap segment of the US equity market, has chosen MICT as a component company.
CEO Darren Mercer stated that the company’s inclusion in the MSCI Index boosts its reputation among institutional investors. He added that the Index is extensively used as a benchmark by institutional investors worldwide to help them optimize their investment portfolios. Mercer said that the selection by MSCI, which came after a thorough screening procedure, is a testament to what the company has accomplished in such a short time since entering the fintech industry in September 2020.