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
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