Shares of Off the Hook YS Inc. (OTH) plummeted 12.49% during intraday trading on Thursday, marking a disappointing debut for the yacht and boat wholesaler on the New York Stock Exchange American. The significant drop comes just after the company priced its initial public offering (IPO) at $4 per share, raising approximately $15 million in gross proceeds.

According to a late Wednesday announcement, Off the Hook YS offered about 3.8 million shares in its IPO, with an additional 45-day option granted to underwriters to purchase up to 562,500 more shares at the offering price. The company plans to use the IPO proceeds for working capital to service its floorplan and for potential down payments to acquire and develop waterfront properties, among other objectives.

The sharp decline in OTH's stock price on its first trading day suggests a lukewarm reception from investors. Market analysts speculate that the negative reaction could be due to concerns about the company's valuation, future growth prospects, or general market conditions affecting the luxury boat industry. It's also possible that investors found the initial $4 per share pricing too optimistic, leading to a correction in the stock's value as it hit the public market.