Nasdaq halts IPOs of small Chinese companies as it probes stock rallies - Mtpıx HEAD TOPICS

Nasdaq halts IPOs of small Chinese companies as it probes stock rallies

10/22/2022 9:55:00 PM

Nasdaq halts IPOs of small Chinese companies as it probes stock rallies

Rsbı Regulatory-Oversıght Mtpıx

Source

Reuters

Nasdaq halts IPO s of small Chinese companies as it probes stock rallies Nasdaq Inc has put the brakes on initial public offering ( IPO ) preparations of at least four small Chinese companies while it investigates short-lived stock rallies of such firms following their debuts, according to lawyers and bankers who work on such stock launches. (NDAQ.O)Douglas Ellenoff, a corporate and securities attorney at Ellenoff Grossman & Schole LLP, said he was informed by the Nasdaq that certain IPOs will not be allowed to proceed "until they determined what has been the aberrational trading activity in certain Chinese issuers earlier this year." "These were last-minute phone calls, just as we thought we were going to go somewhere with the deals," Ellenoff said.It is not clear what action the Nasdaq will take once it completes its probe and whether all or some of the halted IPOs will be allowed to continue. A Nasdaq spokesman declined to comment. Read more:
Reuters » Snap Inc. co-founders see their net worths drop over year: report Plastonix Inc. developed a way to recycle all types of plastic Snap stock plummets more than 25% as online advertising continues to struggle False-advertising lawsuit over Barilla’s claims of being Italian can proceed

Snap sets off alarm bells in ad-reliant social media sector

Snap Inc shares sank more than 30% on Friday and hit their lowest since the pandemic, after the company's forecast of zero revenue growth pointed to more pain ahead for a social media sector heavily dependant on digital advertising. Read more >> Snap Inc. co-founders see their net worths drop over year: reportSnap Inc. co-founders Evan Spiegel and Bobby Murphy have seen their respective net worths drop precipitously in a year, Bloomberg reported Friday. Oh well. Plastonix Inc. developed a way to recycle all types of plasticPlastonix Inc. a company in Canada, that repurposes plastics, launched a revolutionary technology that addresses the world’s massive plastic waste crisis. Chips? Snap stock plummets more than 25% as online advertising continues to struggleSnap’s shares worsened as the stock plummeted more than 20% in after-hours trading. Snap reported revenue growth of less than 6%, and said sales are growing only 9% so far in the 4th quarter while declining to provide full holiday-season forecast. No one uses Snap they should just sell themselves. Why does it make me happy whenever a social media company drops... False-advertising lawsuit over Barilla’s claims of being Italian can proceedA class action lawsuit accusing Barilla America Inc. of false advertising was allowed to proceed this week in the U.S. District of Northern California. I mean if guys can pretend to be women and give birth than it's open season 🤷🏻‍ Someone got mad after they're Italian neighbor dropped some knowledge. Exxon selling Montana oil refinery to Par Pacific in $310 million dealExxon Mobil Corp on Thursday agreed to sell its Billings, Montana, refinery and related pipeline properties to Par Pacific Holdings Inc for $310 million. PUBG Global Championship 2022 Announces Participating TeamsKrafton Inc. revealed new details today for the participating teams in the PUBG Global Championship 2022, happening next month. esports By The Nasdaq logo is displayed at the Nasdaq Market site in New York September 2, 2015.SNAP SETS OFF ALARM BELLS IN AD-RELIANT SOCIAL MEDIA SECTOR The company said it generated $1.plastics combined with a flame retardant rubber automotive components One of the very destructive petroleum-derived materials that the Plastonix system can process is Styrofoam.A bruising year for Snap Inc. REUTERS/Brendan McDermid/File Photo/File Photo NEW YORK, Oct 22 (Reuters) - Nasdaq Inc (NDAQ.O) has put the brakes on initial public offering (IPO) preparations of at least four small Chinese companies while it investigates short-lived stock rallies of such firms following their debuts, according to lawyers and bankers who work on such stock launches.08 billion. The stock exchange operator's actions come amid a surge in the shares of Chinese companies that raise small amounts, typically $50 million or less, in their IPO. Most Popular Many organizations and industries or industrial processes currently discard some petroleum-derived materials because there is deemed little to no economical value. These stocks rise as much as 2,000% in their debuts, only to nosedive in the days that follow, bruising investors who are bold enough to speculate on penny stocks. Meanwhile, its net loss widened from about $72 million to $360 million. Douglas Ellenoff, a corporate and securities attorney at Ellenoff Grossman & Schole LLP, said he was informed by the Nasdaq that certain IPOs will not be allowed to proceed "until they determined what has been the aberrational trading activity in certain Chinese issuers earlier this year. “Our revenue growth continued to decelerate in Q3 and continues to be impacted by a number of factors we have noted throughout the past year, including platform policy changes, macroeconomic headwinds, and increased competition,” executives said in a letter to shareholders, outlining the results. " Register now for FREE unlimited access to Reuters.  In this photo illustration, the Snapchat logo is seen displayed on a smartphone. Plastonix has three levels of services Consulting Businesses and other organizations around the globe are looking for better ways to recover plastic waste.com Register "These were last-minute phone calls, just as we thought we were going to go somewhere with the deals," Ellenoff said. Nasdaq started asking the advisers of small Chinese IPO candidates questions in mid-September." Snap said it saw "decreased brand-oriented advertising spending" and "lower bids per action and lower overall campaign budgets. The questions concerned the identity of their existing shareholders, where they reside, how much they are investing and if they were offered interest-free debt so they can participate, according to one of the bankers, Dan McClory, who is head of equity capital markets at Boustead Securities. Licensing The Plastonix technology is so disruptive that it offers an opportunity for the sector of plastic waste recovery to reinvent itself. The lawyers and bankers spoke to Reuters on condition that the names of the four companies whose IPOs were halted not be disclosed.” Snap’s results — the first among the major tech companies who rely heavily on digital advertising — likely portend even more turbulent times ahead for Alphabet Inc. It is not clear what action the Nasdaq will take once it completes its probe and whether all or some of the halted IPOs will be allowed to continue. A Nasdaq spokesman declined to comment. Seven sources who work on IPOs of small Chinese companies spoke to Reuters on the condition that neither they nor their clients be identified. These sources said that the ephemeral stock rallies were caused by a few overseas investors who concealed their identities and snapped up most of the shares in the offerings, creating the perception that the debuts were in demand. As a result, Chinese IPOs in the United States have returned this year on average a staggering 426% in their first day of trading, compared with 68% for all other IPOs, according to data from Dealogic.28%, Twitter Inc. The Securities and Exchange Commission (SEC) and other U.S. financial regulators have yet to announce a case of successfully prosecuting such pump-and-dump schemes because Chinese companies and their overseas bankers have so far been effective in carrying them out secretly, the seven sources said. An SEC spokesperson did not immediately respond to a request for comment. LOOPHOLES Nasdaq's intervention underscores how liquidity standards it adopted in the last three years to prevent stock manipulation in small IPOs have loopholes that Chinese companies are exploiting. Snap’s desultory news sent shares tumbling in extended trading for Pinterest (-8%), Trade Desk Inc. The rules dictate that a company going public should have at least 300 investors holding at least 100 shares each, totaling a minimum of $2,500. Yet these requirements have not been sufficient to prevent trading manipulation in some penny stocks. Small Chinese companies have been attracted to Nasdaq's exchange rather than the New York Stock Exchange because the former has traditionally been the venue of red-hot technology startups - an image these companies often try to project. "Almost all of these microcap IPOs are 'story' stocks, where the promoters try to convince unsophisticated retail investors that this could be the next Moderna or this could be the next Facebook," said Jay Ritter, a University of Florida professor who studies IPOs. There have been 57 listings of small Chinese companies in the last five years, up from 17 listings in the prior five years, according to Dealogic. “As a smaller player, Snap is more susceptible but no platform is immune,” Insider Intelligence analyst Jasmine Enberg told MarketWatch. So far this year there have been nine such listings despite the U.S. IPO market facing its worst drought in nearly two decades due to market volatility fueled by the Federal Reserve raising interest rates to fight inflation. McClory said the trend highlights the looser regulatory requirements for listings in the United States compared with China. "It is virtually impossible for these companies to list onshore in China, and now the Hong Kong market has completely shut down as well," he said. Snap’s sales increased less than 6% to $1. Register now for FREE unlimited access to Reuters.com Register Reporting by Echo Wang in New York Editing by Greg Roumeliotis and Matthew Lewis Our Standards: .