One wild ride: Shares ofRoma Green Finance, Ltd. (ROMA) closed at $2.90 – down $1.10 or off 27.5 percent from their $4.00 IPO price – after soaring beyond a moonshot in their opening trade today – Tuesday, Jan. 9, 2024 – on the NASDAQ. Volume was about 3.4 million shares. At the first tick, ROMA shares jumped to $10.00 – up $6.00 for a pop of 150 percent from their $4.00 IPO price – at 10:45 a.m. EST today. A moonshot occurs when an IPO’s stock doubles in price – up 100 percent – on its first day of trading as a public company.
ROMA cooled slightly within minutes to trade at $9.00 – up $5.00 or 125 percent from their $4.00 IPO price – on volume of more than 140,000 shares. ROMA retraced some ground, losing a little of the Ziggy Stardust effect by around 11:10 a.m. EST today, trading at $7.92 – up $3.92 or 98 percent – from its $4.00 IPO price. By 1:50 p. m. EST, ROMA dipped closer to earth, trading at $5.41 – up $1.41 or up 35.48 percent from its $4.00 IPO price – on volume of 1.24 million shares.
The ESG-focused company’s micro-cap IPO became the first IPO to get done in 2024. Roma Green Finance, Ltd. (ROMA) priced 3.08 million shares – the number in the prospectus – at $4.00 – the low end of its $4.00-to-$5.00 price range – to raise $12.32 million on Monday night, Jan. 8, 2024. (Note: The new year’s first big IPO – Smith Douglas Homes Corp. (SDHC proposed) – a $150 million deal – is scheduled for pricing on Wednesday night, Jan. 10, 2024 – to trade Thursday, Jan. 11, on the NYSE.)
Spartan Capital Securities was the sole book-runner.
The stock in ROMA’s IPO was offered by the Cayman Islands-incorporated holding company, Roma Green Finance, Ltd., and not by the underlying Hong Kong climate sustainability services business.
Roma Green Finance, Ltd. says it operating subsidiaries in Hong Kong and Singapore provide services focused on ESG, climate sustainability and corporate governance. (ESG stands for environmental, social and governance.)
For the fiscal year that ended March 31, 2023, Roma Green Finance reported a net loss of $130,000 on revenue of $1.75 million, according to financial statements in the prospectus.
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