The shares of a Chinese technology company, QuantumCTek, soared 924% during its first day of trading on the STAR Market in Shanghai on Thursday, breaking the market’s record for a first-day gain.
Tinavi Medical Technologies set the previous record with a 614% rise on Tuesday. Geovis Technology also surged 438% during its Wednesday debut according to Business Insider.
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.
QuantumCTec Co Ltd is a manufacturer and wholesaler of communications equipment. The Company was founded in May 2009 and is located in Hefei, China. Its initial listing shares accounts for 25% of total outstanding shares.
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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.
According to Business Insider, the Star market has added more than $1 trillion of value since June 30, underscoring the breathless hype around Chinese tech IPOs.
QuantumCTek earned the equivalent of $37 million in revenue last financial year, and $7 million in net income, according to China Knowledge. The company’s initial price-to-earning ratio (PE) stands at 196.99.