China’s Infobird Co. Ltd. (Nasdaq: IFBD) tumbled 21% Wednesday after debut-day gains.
The Chinese company, which provides SaaS customer engagement solutions powered by AI, raised $25 million on the Nasdaq Capital Market Tuesday and surged as high as 181% upon liftoff – to $11.25 per share from the fixed issue price of $4. By day’s end, it settled to close at $6.03 per share.
On Day Two, however, the stock ended in the red, at $4.74 per share.
Bloomberg notes a trend for small-cap listings from China. Earlier this month, UTime Ltd. (Nasdaq: UTME) skyrocketed on its IPO day to $28.07 per share from the issue price of $4. And contrary to Infobird, UTime continues to enjoy a strong trading run, having closed Wednesday at $38.20 per share. The company makes budget phones for the global market.
Infobird first publicly filed for an IPO in December, posting revenue and income decline for the first half-year of 2020 – and it has not provided updated financials in its latest filings. However, it has hired new underwriters. WestPark Capital, Inc. was the sole book-running manager, while GF Securities (Hong Kong) Brokerage Ltd., CLC Securities Ltd., Dawson James Securities, Inc., and WallachBeth Capital LLC helped secure the listing.
Serving mostly corporations in the finance industry, Infobird uses self-developed novel technologies involving cloud computing structure, AI and machine learning, patented VoIP technologies, and no-code development platform for easy customization of end-to-end solutions.
The company said it expects to use the IPO capital for strengthening sales and marketing, for research and development, and for working capital and general corporate purposes, including for future capital expenditures, such as the construction of a new cloud computing facility in Guiyang, China.