Malaysian Company Loses Over 70% In Share Price Not Long After Nasdaq Debut

The Nasdaq listing is to bring strategic investments, partnerships, and joint ventures.

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Shares of Malaysia-owned Agape ATP Corporation (ATPC) took a nosedive after recently being listed on the Nasdaq Capital Market.

At the close of trade on Friday, the share price had plunged to an all-time low of USD1.09 (RM5.20) since its Nasdaq debut at USD4 (RM19).

The Nasdaq debut follows an upliftment from the OTC (Over-the-Counter) market.

Agape is a Malaysian company that sells dietary supplements and skincare products through a direct sales model.

As early as 2017, the company had declared its intention to go public through an initial public offering (IPO) on the New York Stock Exchange (NYSE) before opting for Nasdaq.

NST reported that Datuk Seri How Kok Choong, the founder and CEO of Agape, is excited and enthusiastic.

The company said that the listing on Nasdaq has provided a wealth of resources, and he is optimistic about the potential strategic investments, partnerships, and joint ventures.

It added that the health and wellness world is changing rapidly, and Agape is poised to take full advantage of the opportunities.

Notable Malaysian companies have also expressed interest in listing on the Nasdaq, such as Carsome and Capital A Bhd.

Before Agape, a Malaysian special purpose acquisition company (SPAC) named Bukit Jalil Global Acquisition 1 Ltd (Bujau) was successfully listed on the Nasdaq Capital Market on 28 June.

Stepping into the Arena: Playing with the Big Boys

Companies that lose money can also list on the Nasdaq, but they must meet certain financial standards, including minimum financial requirements such as net income, stockholders’ equity, and market capitalization.

Nasdaq has three distinctive tiers for stock market listings: the Nasdaq Global Select Market, the Nasdaq Global Market, and the Nasdaq Capital Market.

These tiers have specific listing requirements that companies must meet for each tier.

The listing requirements for the NASDAQ Capital Market are less stringent than the other NASDAQ markets.