Asia’s largest LGBTQ platform BlueCity Holdings Ltd. (Nasdaq: BLCT) enjoyed its debut on Wednesday in New York watching its shares soar 60% by midday.
The company sold 5.3 million American depositary shares at $16 each in its IPO, representing the midpoint of the expected range. As of intraday, BlueCity watched its stock hit a whopping high of $35.89 per share, surging 124% passed its IPO price.
"It’s a huge milestone for us and the global LGBTQ+ community that we proudly represent! We will continue optimizing our products and services to our users,” BlueCity told CapitalWatch after lifting off trading on Nasdaq.
It was a warm welcome for BlueCity by American investors despite warnings from U.S. regulators against Chinese firms. Ma Baoli, the chief executive officer and founder of Blue City told Reuters in an interview that the company has its sights set on expanding in Asia.
"We will make further expansion after in-depth evaluation," he said ahead of BlueCity's debut.
The underwriters are AMTD Global Markets Ltd., Loop Capital Markets LLC, Tiger Brokers (NZ) Ltd., Prime Number Capital LLC, and R. F. Lafferty & Co., Inc. If they exercise the option to acquire an additional 795,000 ADSs, BlueCity would raise $97.5 million.
The operator of the app Blued intends to use the proceeds from the IPO for geographic expansion, technology, and big data, and general corporate purposes.
Investors will want to keep a close eye on BlueCity, as it will look to carry the momentum passed today’s impressive debut.