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The volatile market for small initial public offers of the United States is “booming” thanks to an increase in Chinese listings on the Nasdaq in New York while companies run to overcome a change of rules that blocks the smallest offers.
The increase in the listings began at the end of last year with 42 small offers in the last three months of 2024, followed by 41 in the first quarter of this year, the two most occupied quarters in the 15 -year records, Chordal Gate (Cmuity Capital). This was 20 in the second quarter of 2024 and 29 in the third.
Fifty -three of the last two lists of rooms were from China and Hong Kong, with only 18 of the United States, and all but nine in Nasdaq. CMG data excludes special purpose acquisition vehicles, which collect money to take care of a private business.
“The microcap IPO market is booming,” said Matthew Kennedy, a senior strategist of Renaissance Capital, citing small Chinese companies in sectors from pharmaceutical products to construction. “It is a highly speculative area,” he said, and many investors lost because most shares fall well below their initial sacrifice price.
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The OPI advanced to a series of policy changes promulgated by Nasdaq, as of April 11, which include requesting the company list on its lowest step under certain standards to raise at least $ 15 million. The stock exchange and values commission said that the new Nasdaq rules “would promote fair and orderly markets” and “would protect investors and public interest.”
Daniel McClory, Chief of Variable and Chinese Income Markets in the US insurance. [companies in] Southeast of Asia and Gran China ”.
Meanwhile, the Listing Market of Grand Capitalization has decreased the hopes of a rebirth under Donald Trump. Market volatility waves around the president’s advertisements led the bankers to postpone several highly anticipated technological opi, while other large lists received a great reception.
This has not stopped a burst or agreements of less than $ 50mn as tariffs shook the markets in April. Little OPI have continued despite the fact that Nasdaq increased the bar last month, with eight additional offers from the change of rules.
The “explosive yields” of companies such as Diginex, based in Hong Kong, a ESG data group, and the Chinese Epwk Holdings group, a crowdsourcing platform, “can boost the interest of merchants who expect rapid profits,” Kennedy said.
Diginex shares have risen 1,375 percent since it appeared in January. Last Tuesday, he said that the Eau Royal Sheikh Mohammed Bin Sultan Bin Hyan Al Nahyan had reached a $ 300mn agreement giving him the right to buy 6.75mn or his shares before the end of the year.
EPWK had increased 470 percent in the months after its debut in the February market, but 75 percent lunch last Monday.
The market of these small offers is dominated by amateur merchants, which are more willing to take advantage of the bargains perceived in the time of interruption of the duration of the stock market when large money administrators remain away.
The US Financial Industry Regulatory Authority in 2023 Warned Investors About “Unusual Price Increases On The Day of Or Shortly after the Ipos of Certain Small-Cap Issuers, Most of Which Involve Issuers With Operations outside The Us” and “Ipos Raising $ 25 and“ IPOS RAISING ” Raising $ 25 and “Ipos Raising” and “Ipos Raising ‘and“ Ipos Raising ”and“ Ipos Raising ”and“ Ipos Raising ”and” Ipos Raising “and” Ipos Raising “and” Ipos Raising “and” Ipos Raising “and” Opis
The average value of the money raised in the small OPI tracked by CMG in the six months until March was around $ 9 million.
The runners say there could be smaller opi if market conditions improve. “If the market was established and cooperated, we could make an opi a week,” McClory said. “As things are, we are pointing to one a month.”
The two most prolific insurers in space, Dominari Securities and RF Lafferty, have seven companies seven companies are public, including the Chinese company of “artificial vision” Lianhe Sowell and the Hong Konpot Masterbeef chain.
RF Lafferty is based in the Trump building in the New York Financial District. Dominari Securities, who acted as a main subscriber for Diginex OPI, is a subsidiary of Dominari Holdings, a group of Fintech headquarters with approximately four miles north in the Trump tower.
Dominari Holdings’ shares increased 580 percent in the six weeks prior to a February 11 presentation that revealed that the children of President Donald Trump JR and Eric Trump had joined their advisor Board, Financial Times reported last month.
Dominari and RF Lafferty did not respond to comments requests.
The avalanche of the smallest OPI occurs when the concerns revolve among some investors about whether Trump will dry what the Chinese exchanges of US exchanges amid commercial tensions with Beijing.
A banker from a small US corridor said that Chinese companies in the United States had recently “invested their corporate structure” to obscure where they carry out most of their business. He said that Chinese companies with a subsidiary abroad were turning their operational company into the parent company “to disinfect the Chinese nature of the list.”
McClory said he expected any Trump prohibition to sign up for large state companies and sensitive industries instead of small businesses. He dismissed Conerns that the Chinese opi in the US were taking investment dollars that would otherwise be American businessmen.
“Virtualy, all these Asian opis were full of investors from the Gran China, or Chinese-American investors in the United States and outside China,” he said. “It is not that they come to the United States and take money from American widows and orpans.”
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