It's Day Two of trading, and Qilian International Holding Group Ltd. (Nasdaq: QLI) is up 21% as of Wednesday morning, at $12.11 per share.
The Chinese company, which sells traditional Chinese medicine products, sold 5 million shares at $5 apiece on Tuesday and doubled by close of debut day. Last week, as the countdown began, Qilian set the price range at $5 to $7 per share, with the low end just reaching the minimum IPO size of $25 million as required by the Nasdaq.
Having first filed for a listing before the Covid-19 outbreak, going public was a long-awaited triumph for Qilian. Its success on the first two days of public trading shows investors’ appreciation for small-cap Chinese stocks, especially for a profitable company like Qilian.
For the six months through March 2020, Qilian reported $27.8 million in revenue, up 2% year-over-year. It managed to lower its selling, general, and administrative expenses by 18% to $1.4 million, though net income also declined to $3.9 million from 4.3 million in the same period of 2019, according to the prospectus.
The company achieved revenue growth during the period despite a reduced supply of raw materials amid the Covid-19 outbreak and the early 2020 lockdowns. For the year through September 2020, Qilian estimated net revenue growth of between 5% and 8% thanks to the rebounding market conditions.
Qilian sells traditional Chinese medicine products, specifically, “licorice products, oxytetracycline products, traditional Chinese medicine derivatives (TCMD) product, heparin product, sausage casings, and fertilizers.”
Also on Tuesday, China’s Kuke Music Holding Ltd. (NYSE: KUKE) celebrated its $50 million IPO on Wall Street.
Kuke ended Day One ten cents above pricing at $10 per share, trading up 6% early Wednesday, at $10.71 per share.