Top Win International Limited (NASDAQ: TOPW), a Hong Kong-based luxury watch wholesaler, experienced a dramatic after-hours plunge of 28.98% on Wednesday, capping off a highly volatile first day of trading following its initial public offering (IPO). The steep decline came after a roller-coaster regular trading session that saw the stock initially soar before retreating.

TOPW priced its IPO at $4.00 per share, offering 2,664,000 ordinary shares to raise approximately $10.6 million in gross proceeds. The stock began trading on the Nasdaq Capital Market under the ticker symbol "TOPW" on Wednesday, initially surging nearly 90% in early trading. However, the enthusiasm waned as the day progressed, with the stock reversing course and dropping 6.50% during regular trading hours.

The significant after-hours plunge suggests that investors may be reassessing the company's valuation following the initial excitement. Several factors could be contributing to this sharp decline, including profit-taking by early investors who capitalized on the initial surge, concerns about the sustainability of the luxury watch market in the face of economic uncertainties, or simply the volatile nature of newly listed stocks, especially those of smaller companies. As Top Win International faces its first days as a public company, the market appears to be grappling with how to value this niche luxury wholesaler in the competitive Asian market.