Waton Financial Limited (NASDAQ: WTF), a British Virgin Islands-incorporated holding company providing securities brokerage and financial technology services, saw its stock plummet 6.32% in after-hours trading on Tuesday. This sharp decline came on the heels of the company's Nasdaq debut following its initial public offering (IPO).

Earlier in the day, Waton Financial announced the pricing of its IPO at $4.00 per share, with the offering of 4,375,000 ordinary shares. The company aimed to raise approximately $17.5 million before deducting underwriting discounts and commissions. Trading under the ticker symbol "WTF," the stock began trading on the Nasdaq Capital Market on April 1, 2025.

The after-hours plunge suggests that investors may be reassessing the company's valuation following its public debut. It's common for newly listed stocks to experience volatility in their early trading days as the market attempts to find an equilibrium price. The significant drop could indicate that some investors believe the IPO was overpriced or that there are concerns about the company's growth prospects in the competitive financial technology sector.