It was back to earth at the close for Golden Heaven Group Holdings Ltd. (GDHG). The stock ended at $4.01 – up 1 penny from its $4.00 IPO price – after rising more than 10 percent during its first day of NASDAQ trading on Wednesday (April 12, 2023). Volume: 892,303 shares. The Chinese amusement park operator’s IPO – a carry-over from last week – was downsized at pricing to 1.75 million shares – down from 2.0 million shares in the prospectus. The IPO was priced at $4.00 – the low end of its $4.00-to-$5.00 price range – on Tuesday night (April 11, 2023).
Golden Heaven Group’s IPO raised $7 million – or $2 million less than it would have, if the full 2.0 million shares had been priced at the $4.50 mid-point. The stock in the IPO was offered by the Cayman Islands-incorporated holding company – and not by the underlying Chinese business.
Revere Securities and R.F. Lafferty & Co. were the joint book-runners.
Golden Heaven Group’s subsidiaries operate six properties – amusement parks, water parks and related recreational facilities – in southern China. The company is based in the Yanping District of Nanping City in Fujian Province. The parks are accessible to about 21 million people.
For the fiscal year that ended Sept. 30, 2022, Golden Heaven Group earned net income of $14.33 million on revenue of $41.79 million.