BRIEF: Intercont shares fall in first two trading days after U.S. IPO

Shares of shipping company Intercont (Cayman) Ltd. (NCT.US) sagged in their first two trading days, after the company raised $10.5 million in gross proceeds through the sale of 1.5 million shares in its New York IPO. The stock fell 2% from its IPO price of $7 on its first trading day last Friday, then tumbled 16.5% during its second day on Monday to close at $5.72.

Intercont is a shipper of bulk materials like coal and iron ore, using a fleet of one self-owned and three leased ships. Its revenue rose 3.5% year-on-year to $32.4 million in 2023, and its net income was up 28% that year to $10.9 million, it said in its IPO prospectus last year.

In a new initiative, the Hong Kong-based company is aiming to assemble a fleet of eight “ocean factory” ships for a sea-based operation that would recycle pulp from cardboard. It said that part of the IPO proceeds would be used to develop that business.

By Doug Young

To subscribe to Bamboo Works free weekly newsletter, click here