A Chinese tech stock skyrocketed 924% on its trading debut, breaking the record for a first-day gain
AP/Richard Drew
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.
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.
Read the original article on Business Insider
