Hong Kong's Magic Empire stock tumbles 80% in wake of spectacular IPO

Nikada

Magic Empire (NASDAQ:MEGL) stock plunged over 80% in midday trading Tuesday after scoring tremendous gains during the two sessions following its $20M initial public offering.

Shares of the Hong Kong corporate financial services group opened at $85.30, reaching an high of $89.97 in early trading before tumbling to a low of $19.19. The stock recently traded at $20.92, down 83% from Monday’s close, at approximately 12:00 p.m. ET.

Magic Empire made its US market debut on Friday, offering 5M shares priced at $4 per share. After several halts due to volatility, the stock ended its first session 2,325% higher at $97 per share. The stock rose 21% on Monday.

For a more in-depth look at Magic Empire, check out SA contributor Donovan Jones’s “Magic Empire Global Limited Pursues $23 Million US IPO.”