Key Takeaways:
BASICSEMI (09971.HK) plunged as much as 39.9 percent to HKD40.04 on Tuesday, extending a two-day slump for the silicon carbide equipment maker that listed in July.
The stock opened 1.8 percent higher and touched an intraday high of HKD67.8 before reversing course, according to AASTOCKS Financial News. It was last at HKD49.48 in the afternoon session, down 25.71 percent, with trading volume surging to 1.6934 million shares and turnover reaching HKD86.06 million.
The mainland silicon carbide power device integrated equipment manufacturer listed in early July with an offer price capped at HKD31.62 per share, raising net proceeds of HKD766 million. Sinolink Securities (Hong Kong) and BOCI acted as joint sponsors on the deal.
The reversal marks the second consecutive daily decline for the newly listed stock, which had run up sharply after its debut. Even after the two-day slide, the shares still trade about 56 percent above the HKD31.62 offer price, a level that may leave the stock vulnerable to further profit-taking as early investors lock in gains. The sharp swing in a stock that only began trading in July highlights the volatility that can follow a strong post-IPO run-up in Hong Kong's small-cap market.
This article is for informational purposes only and does not constitute investment advice.
