Shares of Mega Fortune Company Limited (MGRT) plummeted 6.25% during intraday trading on Wednesday, marking a disappointing debut for the Internet of Things platform provider on the Nasdaq. The significant drop comes just hours after the company priced its initial public offering (IPO) at $4 per share.
Mega Fortune raised $15 million in gross proceeds through its IPO, offering approximately 3.8 million shares. The company announced late Tuesday that trading would commence on Wednesday under the ticker symbol 'MGRT'. Additionally, underwriters have been granted a 45-day option to purchase up to an additional 562,500 shares.
The sharp decline in Mega Fortune's stock price on its first trading day suggests that investors may be skeptical about the company's valuation or growth prospects. It's not uncommon for newly listed companies to experience volatility in their early trading days as the market assesses their true value. Factors such as overall market conditions, sector-specific concerns, or a perception that the IPO was overpriced could all be contributing to the negative sentiment surrounding MGRT's debut.
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