Leifras Co. Ltd. (LFS), a Japanese sports education and social business services provider, experienced a sharp decline in its stock price during its U.S. market debut on Thursday. The stock plummeted 26.50% in intraday trading, reflecting a challenging start for the newly listed company.

The disappointing performance began immediately as trading commenced, with LFS opening at $2.88, already 28% below its initial public offering (IPO) price of $3.50 per share. This significant gap between the IPO price and the opening trade suggests that investors may have concerns about the company's valuation or growth prospects in the U.S. market.

Leifras Co. Ltd., which operates more than 4,500 facility locations across Japan and serves over 65,000 members nationwide, aimed to expand its presence by listing on the U.S. stock exchange. However, the market's initial reaction indicates that the company may face hurdles in gaining investor confidence in this new territory. As trading continues, it remains to be seen whether LFS can recover from this rocky start and demonstrate its value proposition to U.S. investors.