Chinese Hip-Hop Promoter’s Hot Debut Turns Into 790% Rally
(Bloomberg) -- Some stocks do really well following initial public offering debuts. But a 700% jump goes beyond “well” -- it’s off the charts.
Pop Culture Group Co. is the latest outlier and quickly becoming a potential example of stock market exuberance. The China-based hip-hop promoter went public on Wednesday at $6 per share and a market value of about $140 million. Fast forward to Friday, the stock is up roughly 790% and the company’s market value swells to $1.27 billion after that rally.
It boasts the fifth-biggest U.S. trading debut this year after jumping 405% on Wednesday, according to data compiled by Bloomberg. E-Home Household Service Holdings Ltd. tops that list with an eye-watering 1,100% rally in its May trading debut.
The blistering post-IPO rally cooled off a bit on Friday with its shares sliding 11% to $53.40, which is still about $47 above its IPO price.
Pop Culture’s IPO prospectus said it generated about $15.7 million in revenue during the 12-months ended June 2020, with almost half of that tally coming from event hosting. At today’s price, it trades at more than 300 times earnings, about 10 times that of Apple Inc, according to data compiled by Bloomberg.
A call for comment and message to Pop Culture investor relations’ group wasn’t immediately answered.
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