Shares of HiTek Global (HKIT) popped above $6.00 – up more than $1.00 from their $5.00 IPO price – after a flat start today (Friday, March 31, 2023) in their NASDAQ debut. HiTek Global, the Cayman Islands holding company of a Chinese IT consulting business, priced 3.2 million shares – down from 4.0 million shares in the prospectus – at $5.00 apiece on Thursday night (March 30, 2023). The IPO raised $16.0 million – 20 percent less than the $20.0 million in estimated IPO proceeds.
HiTek Global was among a trio of micro-cap IPOs priced on Thursday night – plus one NYSE uplisting deal – as bankers rushed to book some more business before writing “finis” on the first quarter of 2023.
R.F. Lafferty & Co. and Pacific Century Securities were the joint book-runners.
HiTek Global’s stock opened at 11:39 a.m. EDT today at $5.00 – the same as its IPO price – in its NASDAQ debut. By 12:02 p.m. EDT, HiTek Global was trading at $6.11. Two hours later, HiTek Global was trading at $5.66 – up 13.2 percent from its IPO price. Volume for the day so far stands at around 1.51 million shares.
HiTek Global (HKIT) is the holding company of a Chinese business that provides IT consulting and solutions services (software and related services) to small and medium businesses in China as well as services (hardware and software sales) to large businesses in China, the prospectus says. The Chinese business is based in Xiamen City in Fujian Province.
For the 12 months that ended June 30, 2022, HiTek Global earned net income of $1.44 million on revenue of $6.33 million.
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