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Wedding consulting firm shares almost double on OTC debut

Wedding consulting firm shares almost double on OTC debut

Shares of Da Lue International Holding Co., a China-based wedding consulting firm, moved sharply higher on the first trading day on the local over-the-counter (OTC) market Friday, with its share price almost doubling from its issue price, dealers said.

While large-cap stocks on the main board remained in the doldrums, investors rushed to park their funds in smaller stocks, such as Da Lue, which reported a significant improvement in its bottom line, they said.

Shares of Da Lue closed up 98.17 percent from its issue price of NT$82.00 (US$2.51) at NT$162.50, off an early high of NT$180.00, on the OTC market, where the index ended up 0.68 percent at 131.46. The weighted index closed down 0.68 percent at 8,398.60.

In Taiwan, a newly listed company is not confined to the maximum daily 10 percent in fluctuations.

For the primary listing on the OTC market, Da Lue, which was incorporated in the Cayman Islands, issued 2.5 million new shares at NT$82 each to raise a total of NT$205 million from the local market as working capital for future expansion.

"To my knowledge, Da Lue has intensified its efforts in acquisitions and mergers to grow in a bid to grab a larger share and strengthen its profitability, which has drawn much market attention," Nan Hua Securities analyst Kevin Su said.

Da Lue, headquartered in Shanghai, is planning to extend its reach to Beijing in the first quarter of next year to provide one-stop wedding consulting services, including wedding planning, wedding banquets and wedding photography.

Updated : 2021-09-17 02:21 GMT+08:00