Chinese Internet insurance technology company Waterdrop fell hard on its first day of trading on the New York Stock Exchange on Friday. Waterdrop, invested by China’s Tencent and handed over to American Depositary Shares (ADS) to assist in the listing, priced its IPO at $12. It broke at $10.25 on the opening day and closed at $9.70, a heavy drop of 19.2 percent. Waterdrop responded by saying that profitability is not our top goal at this time. This comes on the heels of news that Chinese regulators are taking a stance against Waterdrop seeking a U.S. listing in New York.
According to a Reuters report, China’s Waterdrop broke on its first day of listing on the New York Stock Exchange, closing down more than 19 percent from its offer price.
Waterdrop, which is invested by China’s Tencent 0700.HK, opened its American Depositary Shares (ADS) at $10.25 and closed at $9.70. Waterdrop priced its IPO at $12.
Waterdrop CEO Shen Peng told Reuters earlier on Friday that Waterdrop will focus on user growth more than profitability in the short term. According to Shen Peng, “profitability is not our top priority at this point,” he said, adding that achieving user growth and serving more customers is more important in the short term.
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