By Jerry Kronenberg | Moomoo News
Building-technology company $INNO Holdings (INHD.US)$ tumbled nearly 85% Friday on its second trading day following an initial public offering, giving back the entire 380% intraday rally that it enjoyed on Thursday and then some.
INHD fell 84.6% to close at $2.13, far below the $4 a share that its IPO priced at. The pullback came one day after the stock soared 380.25% to a $19.21 intraday high.
However, the rally quickly began to lose steam, with INHD pulling back to $13.87 by the time markets closed on Thursday. Shares kept falling Friday, dropping to as low as $1.96 intraday before partly recovering.
Inno Holdings creates steel studs, tracks and other building materials that it believes can replace traditional wooden construction materials.
The company sold 2.5 million shares at $4 each as part of its IPO, raising $10 million. It also granted underwriters overallotment options on another 375,000 shares.
Thursday’s rally briefly took INHD’s market capitalization to around $400 million, although Friday’s sell-off dropped the company’s value back down to about $45 million.