Daqo New Energy (DQ) stock is soaring 8.22% in Thursday's trading session, outperforming the broader market of Asian equities traded in the US. This significant uptick comes as the company announced a major development regarding its share structure.
According to a company statement, the lock-up period for 1.6 billion shares of Xinjiang Daqo New Energy Co Ltd, a subsidiary of Daqo New Energy, is set to end. These shares are scheduled to start trading on July 25th. This impending influx of tradable shares appears to be driving investor interest and contributing to the stock's rapid ascent.
The news of the lock-up period ending could be interpreted positively by investors for several reasons. It may signal increased liquidity for the stock, potential for institutional investment, or confidence from insiders who have held these shares. However, investors should also be aware that an increase in tradable shares could potentially lead to increased volatility in the short term.
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