Concorde International Group (NASDAQ: CIGL) saw its stock price plummet by 6.50% during intraday trading on Tuesday, following the announcement of its initial public offering (IPO) pricing. The company, which specializes in electric vehicular mobile command centers, priced its IPO at $4.00 per share, raising $5 million in gross proceeds.
The IPO consists of 1.25 million Class A ordinary shares, with underwriters granted a 45-day option to purchase an additional 187,500 shares. Concorde International Group stated that the offering is expected to close around Wednesday, with the stock beginning to trade on the Nasdaq Capital Market under the ticker symbol "CIGL".
The significant drop in share price could be attributed to investors' perception of the IPO pricing and the relatively small size of the offering. The company plans to use the proceeds for various purposes, including the rollout of its electric vehicular mobile command centers, research and development, market expansion, product development, and general corporate use. However, the market's initial reaction suggests that investors may have concerns about the company's valuation or growth prospects in the competitive electric vehicle and mobile command center markets.
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