- Plenti (ASX:PLT) shares were up more than 80 per cent today
- The company added nearly 40 cents to its share price in the first twenty minutes of trade
- The enthusiasm comes as Plenti teams up with NAB
- Plenti is a small personal loan provider but its move-in with the big boys has clearly caused excitement
- Shares last traded at 54 cents
Plenti (ASX:PLT) shareholders are having a fantastic day. The catalyst? The listed small loan provider has teamed up with NAB (ASX:NAB).
Also helping is likely Plenti’s 1HFY24 report. Revenue jumped 52 per cent over 1H FY23 to $97 million.
However, overall profits were far lower – a relatively measly $1.5 million. This was only up 10 per cent versus 1H FY23.
Revenues are always great, but earnings are what people like. Probably most readers would concede that $1.5 million isn’t world-changing.
And yet, the company’s share price jumped nearly 40 cents in the first twenty minutes of trade today.
PLT shares hit a morning peak at 72.5 cents at 10:15 am AEDT.
It’s looking like the deal with NAB is the main catalyst behind the surge.
Line chart history lesson
Prices opened at 10:00 after gapping up to 53 cents. However: PLT shares closed at 34 cents yesterday.
Today, as at around 2:00 pm AEDT, 1.043 million shares in Plenti have turned over on the bourse.
This is compared to a four-week volume average of only 16,680 – emphasising how a thin trading base has helped Plenti soar on the charts today.
This is a relative turning point for the company. Since July of 2021, the company’s share price has been in decline.
On 21 July 2021, shares were worth $1.63.
They were worth 34 cents yesterday and this range they’ve remained in all of 2023.
Plenti shares are now at an eleven-year high.
NAB deal details
A co-branded car and EV loan program will be launched by NAB in the first six months of next year.
Called “NAB powered by Plenti”, NAB customers accessing loans will be exposed to Plenti branding – and Plenti will be exposed to NAB’s customer base.
NAB will be responsible for product marketing, credit and policy setting, and loan funding.
Plenti will be responsible for “loan application experiences”, the assessment of loan seekers, and ongoing customer management.
What’s more, the two financial players are aiming to integrate their software systems for ease of use.
Plenti also offers renewable energy finance solutions, and NAB will dangle these before their own customers, too.
Plenti sees its scale and profitability growing over time, and in turn, NAB may acquire a 15 per cent shareholding in Plenti.
Shares last traded at 54 cents.