Tim Hortons China stock falls 18% on second day of trading since SPAC merger

BalkansCat/iStock Editorial via Getty Images

Shares of newly public TH International (NASDAQ:THCH), which operates nearly 500 Tim Hortons coffee shops in China, saw its shares fall 18% during its second day of trading.

TH International shares opened at $6.21, climbing to an early high of $7.30 before falling to a low of $5.97 in late afternoon trading. The stock closed at $5.98, down 18% from Thursday's close.

Shares of the coffee vendor, also known as TimsChina, made their market debut on Thursday following the company's merger with SPAC Silver Crest Acquisition Corp. The stock ended its first session at $7.29, down 9% from its pre-merger close of $7.99 on Wednesday.

The companies confirmed plans to merge in August 2021, with an estimated enterprise value of around $1.69B.

TH International currently operates 460 stores in China, with plans to have 2,750 stores by 2026. The company was a joint venture between Tim Hortons Restaurants International, a subsidiary of Restaurant Brands International (QSR), and private equity firm Cartesian Capital.

Silver Crest shareholders voted in favor of the merger on Aug. 18.