Bloomberg (Bloomberg) — every quarter or so, at least one tiny business debuts in the US equity capital markets, totally blowing up charts and traders’ minds. Who is the new front-runner? UTime Ltd. (nasdaq utme at https://www.webull.com/quote/nasdaq-utme) is a company based in the United Kingdom.
The Chinese cell phone and accessory manufacturer went public in New York on Tuesday for $4 per share. By Wednesday, the stock had risen nearly 2,600% from its initial offering price to $107.33. Even after the stock retreated Thursday, the firm, which was valued at around $33 million when it first went public, now has a market capitalization of around $350 million.
According to data collected by Bloomberg for companies that raised more than $10 million, UTime’s first-day “pop” — as the debut session is called — was the highest in the United States since Internet service provider Freeserve Plc. jumped by 1,261 percent during the dot-com frenzy in 1999.
The company’s representatives did not respond to an email requesting comment.
UTime is a bona fide IPO darling, but it’s not the only one in recent years.
According to data gathered by Bloomberg, the organization was the latest of 22 U.S. IPOs to surge by at least 800 percent in their debuts over the last decade. These are small companies; UTime was the most successful, raising $15 million. Boutique banks are also in charge of their listings.
The IPO market had a record quarter in the first three months of the year, with $215 billion in proceeds. Still, nearly $100 billion of that came from a record wave of issuance by special-purpose acquisition firms, showing signs of slowing.
One trader described the market achievement seen with UTime as “amazing” but also as an indicator of investors’ desire to find and “grasp” what could become a new hot stock “initial on.” Stocks that suit this description, limited in size and have deals run by smaller banks, are notoriously volatile. UTime is now on its way back to Earth, as is customary. In New York, shares closed at $42.30, down 48.5 percent on the day.
In the China centered mobile phone manufacturer’s second day of trading on the Nasdaq, shares of UTime Ltd. jumped 133.3 percent in extremely unpredictablemidafternoon trading Wednesday, outpacing all gainers on major U.S. exchanges. The stock closed at $39 on Tuesday, up 875 percent from its initial public offering price of $4, which was at the low end of the planned range of $4 to $5 per share. The company raised $15 million by selling 3.75 million shares in its initial public offering. The company’s current market cap was $752.4 million, up from $33.1 million at the IPO price, with the stock currently selling about 23 times the IPO price. So far, on Wednesday, the market has been halted nine times due to uncertainty, compared to 14 times on Tuesday. After a loss of RMB11.9 million on RMB238.1 million in 2019, the company reported a net loss of RMB21.7 million on revenue of RMB 193.1 million in 2020. You can find more stocks like nasdaq goog at https://www.webull.com/quote/nasdaq-goog.