The company Addentax deals with textile printing and logistics, employed 126 people as of March 31, 2022 and as of Wednesday with a market capitalization of $ 20.4 billion is worth more than a third of the companies in the leading American index S&P 500. Addentax, which is based in the United States is incorporated as a company but does business primarily through subsidiaries in China went public on the New York technology stock exchange Nasdaq at $5 a share on Wednesday.
Gregory Bruner
Editor in Business.
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In the course of the first trading day, the financial service Bloomberg registered price increases of up to 13,031 percent.
Trading in the shares has been suspended more than 20 times due to their volatility.
At the end of the day, it closed at around $412.
Addentax's trading debut brings back memories of AMTD Digital, a Hong Kong financial company that went public on the Nasdaq in July.
Its share price also rose by up to 32,000 percent within two weeks – without this being covered by outstanding business results.
Addentax reported a 49 percent decline in sales to $12.7 million as of March 31.
Comparable market capitalization companies in the S&P 500 earn an average of $40 billion.
The Magic Empire company also launched a comparable IPO in the summer under similar circumstances.
Magic Empire and Addentax name the same lead manager in their prospectus, Network 1 Financial Securities.
If you look at the history of the IPOs supported by Network 1, you will find mainly smaller companies from mainland China or Hong Kong that placed their shares on the Nasdaq.
The website specifically advertises small and medium-sized Chinese companies.