Finance

A Chinese tech stock skyrocketed 924% on its trading debut, breaking the record for a first-day gain

  • Shares in a Chinese tech company soared 924% during their trading debut on Thursday, according to Bloomberg.
  • QuantumCTek’s stock price rose more than tenfold to about 370 yuan ($53), boosting its market capitalization to north of $4.2 billion.
  • The stock broke the Shanghai Star market’s record for a first-day gain of 614%, set on Tuesday.
  • QuantumCTek’s market cap is more than 110 times its sales last year, and 600 times its net income.
  • Visit Business Insider’s homepage for more stories.

A Chinese technology stock skyrocketed 924% during its first day of trading on Thursday, according to Bloomberg.

QuantumCTek issued its shares at 36.18 yuan ($5.18) each, and they soared more than tenfold to close north of 370 yuan. The stunning increase boosted the group’s market capitalization from the yuan equivalent of $414 million to over $4.2 billion.

Read More:UBS has compiled an investing playbook for all the possible election outcomes. Here are the 6 trades it recommends to profit from a Trump triumph — and 10 for a Biden blue wave.

The maker of network-security and communication systems listed its shares on the Shanghai Star market, which imposes no limits on price moves during a stock’s first five days of trading, Bloomberg said.

QuantumCTek broke the market’s record for a first-day gain. Tinavi Medical Technologies set the previous record with a 614% rise on Tuesday. Geovis Technology surged 438% during its Wednesday debut as well.

The Star market has added more than $1 trillion of value since June 30, Bloomberg said, underscoring the breathless hype around Chinese tech IPOs.

Read More: Buy these 15 stocks that are shielded from COVID-19 fallout and primed to beat the market even as virus cases spike, Evercore says

QuantumCTek earned the equivalent of $37 million in revenue last financial year, and $7 million in net income, according to China Knowledge.

Investors are therefore valuing it at more than 110 times sales and 600 times net income, based on its current market cap.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

17 − 16 =

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Most Popular

To Top