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 Shanghai's 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.
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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.
The maker of network-security and communication systems listed its shares on Shanghai's 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 had set the record on Tuesday with a 614% rise. 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.
QuantumCTek earned the equivalent of $37 million in revenue in 2019 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.