Recent debutant Addentax falls 99% from its post-IPO peak
07/09/2022 15:28
** Shares of Chinese garment maker Addentax Group Corp
ATXG.O extend losses, down 10.7% to $5.18
** ATXG opened at $27 at its Nasdaq debut on Wednesday last
week and eventually finished session at $656.54, up 8,654% from
OTC pink sheet close of $7.50 the prev day
** Stock is now down 99.2% from that high
** "The Addentax story seems similar to the recent rise and
fall of AMTD Digital HKD.N , which shed more than 90% of its
value after reaching its peak. What is common in these stocks is
that they are illiquid, volatile and carry the potential for gap
risk," says Krisztian Gatonyi, FX trader and senior analyst at
BrokerChooser.
** The Shenzhen-based firm sold 5 mln shares at $5 for $25
mln raise last week with Network 1 Financial Securities acting
as sole bookrunner
** ATXG is the fourth most trending stock on retail investor
focused forum Stocktwits.com
(Reporting by Bansari Mayur Kamdar in Bengaluru)
((BansariMayur.Kamdar@thomsonreuters.com;))