Millet has become a "perfect example" for some shareholders to become rich overnight. After the lifting of the ban on stocks of some shareholders on Wednesday, the selling pressure of millet stocks increased sharply.
For investors who participated in the earliest round of millet financing, this week's sale of stocks still yielded high returns. Millet's prospectus shows that during the financing round from September 2010 to May 2011, investors bought millet shares at a price of 1.95 Hong Kong dollars per share. Millet sold about 4 billion shares in this round of financing. If the shares were sold at the closing price of HK$11.1 on Tuesday, their returns would be as high as 568.23 times (regardless of stock splitting).
Analysts downgraded their expectations for millet profits and revenue on the grounds of weak smartphone sales and fierce market competition in China. Millet is one of the most hyped IPO deals in 2018, with an initial valuation of up to $100 billion. Currently, the market value of millet has shrunk to about $30 billion. (Compilation/Frost Leaf)