A Chinese tech stock skyrocketed 924% on its trading debut, breaking the record for a first-day gain

Theron Mohamed

July 9, 2020 10:00 AM

Shares in a Chinese tech company soared 924% during their trading debut on Thursday, according to Bloomberg .

QuantumCTek's stock price rose more than tenfold to about 370 yuan ($53), boosting its market capitalization to north of $4.2 billion.
The stock broke the Shanghai Star market's record for a first-day gain of 614%, set on Tuesday.
QuantumCTek's market cap is more than 110 times its sales last year, and 600 times its net income.
Visit Business Insider's homepage for more stories .

A Chinese technology stock skyrocketed 924% during its first day of trading on Thursday, according to Bloomberg .

QuantumCTek issued its shares at 36.18 yuan ($5.18) each, and they soared more than tenfold to close north of 370 yuan. The stunning increase boosted the group's market capitalization from the yuan equivalent of $414 million to over $4.2 billion.

Read More: UBS has compiled an investing playbook for all the possible election outcomes. Here are the 6 trades it recommends to profit from a Trump triumph and 10 for a Biden blue wave. The maker of network-security and communication systems listed its shares on the Shanghai Star market, which imposes no limits on price moves during a stock's first five days of trading, Bloomberg said. QuantumCTek broke the market's record for a first-day gain. Tinavi Medical Technologies set the previous record with a 614% rise on Tuesday. Geovis Technology surged 438% during its Wednesday debut as well. The Star market has added more than $1 trillion of value since June 30, Bloomberg said, underscoring the breathless hype around Chinese tech IPOs. Read More: Buy these 15 stocks that are shielded from COVID-19 fallout and primed to beat the market even as virus cases spike, Evercore says QuantumCTek earned the equivalent of $37 million in revenue last financial year, and $7 million in net income, according to China Knowledge . Investors are therefore valuing it at more than 110 times sales and 600 times net income, based on its current market cap. NOW WATCH: Why thoroughbred horse semen is the world's most expensive liquid See Also: Warren Buffett's Berkshire Hathaway struck a $10 billion deal to buy Dominion Energy's natural gas business. Here's why the energy giant sold. The most accurate analyst covering companies like Amazon says these 7 stocks are great bets for the future of e-commerce even as the coronavirus bump fades JPMORGAN: The coronavirus crisis has decimated one of the safest defenses against stock-market crashes. Here are 4 ways to pivot your portfolio now.