Yahoo Finance Tiny Telehealth Stock Sinks 85% as IPO Rally Collapses
(Bloomberg) -- The Singaporean telehealth provider Mobile-Health Network Solutions, once the top-performing US IPO this year, tumbled below its IPO price for the first time since its April public listing.
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The stock plunged 85% Friday to close at $3.39 a share, below the company’s $4 IPO price. The movement triggered multiple volatility halts.
It’s a swift reversal for the stock, which surged more than 580% in its first weeks of trading, making it one of the hottest US IPOs of the year. The stock began trading above its IPO price on April 10 and rallied to close at more than $27 a share at its peak, pushing the company’s market value to more than $925 million at the time.
Friday’s plunge erased $635 million from the company’s valuation, bringing it to about $115 million. The telehealth provider brought in $7.9 million in revenue in the fiscal year through June 30, though it lost about $3.2 million in the period.
Mobile-Health Network Solutions’ IPO was led by Network 1 Financial Securities Inc., a little-known New Jersey brokerage with a history of wild stock offerings. The offering this year was the firm’s first since 2022.
Read more: Tiny NJ Broker Behind Booming IPOs Is Back With 380% Blockbuster
--With assistance from Bailey Lipschultz.
(Corrects revenue figure in fourth paragraph in story published May 3.)
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