(Yicai Global) June 16 – Share prices at Meitu Inc. [HKG:1357] have undergone severe fluctuations since the firm went public in December 2015, peaking at HKD23.05 (USD2.96) a share in March this year with a market cap of HKD100 billion (USD12.8 billion), before slumping to just HKD8.3.
The share price fell drastically yesterday after the six-month lock-up period ended and one of its larger shareholders dumped 66 million shares at HKD8.5 before trading opened. The price slipped to HKD8.3 before closing at HKD8.5, after the company's founder said he would not be selling stock.
The shareholder made the sale in order to raise USD72 million, Beijing News reported.
"We have been paying attention to the long-term development of the company's fundamentals," Meitu said, "rather than the fluctuations in share price. The company values each shareholder and respects their investment decisions. We are committed to creating long-term value for our shareholders and would like to reiterate that our founder will not be cutting holdings."
Meitu stock is considered unusual by many market participants, mostly because its performance rarely matches forecasts or data, Tang Xin, an internet analyst, said. This drop in share price comes after an inflated price that wasn't backed by performance, he added.