Waton Financial (WTF, Financials) shares surged nearly 400% on their first day of trading on the Nasdaq Capital Market, closing at $19.85 after being priced at $4 per share. The rally brought the company into focus as one of the most volatile debut listings of the year. After the initial spike, the stock has pulled back, trading around $7.20, according to market data from Wednesday.
The company, which operates through subsidiaries in Hong Kong, raised $20.1 million in gross proceeds through its initial public offering, according to an April 2 announcement posted on GlobeNewswire. The offering included 4,375,000 ordinary shares sold at $4.00 apiece, resulting in $17.5 million in gross proceeds. Underwriters exercised their full over-allotment option, purchasing an additional 656,250 shares for $2.63 million.
Waton Financial said it plans to use the $17.5 million raised in the offering to upgrade its trading platform and bolster its asset management segment. The company provides securities brokerage, asset management, and technology support services through Waton Securities International Limited and Waton Technology International Limited in Hong Kong.
