The Li-S Energy Ltd (ASX: LIS) share price is tumbling again today despite no news having been released by the ASX newbie.
Li-S Energy floated on the ASX on Tuesday, gaining a massive 175% on the day of its initial public offering (IPO).
It gained another 3.85% on Wednesday before falling 14.8% yesterday.
The plunge is continuing into today’s session. At the time of writing, the Li-S Energy share price is $1.90, 8.21% lower than its previous close.
However, that’s still 123% higher than its prospectus’ offer price of 85 cents per share. That offer price saw Li-S Energy raise $34 million through its IPO.
Let’s take a closer look at the lithium-sulphur battery technology company’s first week on the ASX.
What’s up with the Li-S Energy share price?
Li-S Energy’s shares are in the red for the second day in a row despite the company’s silence.
Li-S Energy debuted on the ASX on Tuesday, delighting market watchers when its stock’s value soared to finish its first day’s trade at $2.34.
In fact, the company’s stock set its first, and so far only, record high of $3.05 in intraday trade on Tuesday.
However, the market might have since calmed down from its initial excitement. The Li-S Energy share price has tumbled on Thursday and Friday, though it’s still miles above its offer price.
Currently, Li-S Energy has a market capitalisation of around $1.2 billion. That’s impressive considering the company has anticipated it would float with a market capitalisation of around $544 million.
Oddly enough, the company from which Li-S Energy spawned – PPK Group Limited (ASX: PPK) – has been struggling on the ASX this week.
The PPK share price has been falling all week despite Li-S Energy’s successful float. PPK owns 45.4% of Li-S Energy’s stock.
The PPK share price is currently 18% lower than it was at last Friday’s close.
The post Why is the Li-S Energy (ASX:LIS) share price sliding 9% today? appeared first on The Motley Fool Australia.
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More reading
- Why is the Li-S Energy (ASX:LIS) share price tumbling 13% today?
- Why BlueBet, Gold Road, Li-S Energy, & Myer shares are dropping
- Li-S Energy (ASX:LIS) share price up another 3% in second day of trading
- Why PPK (ASX:PPK) and Li-S Energy are this fund’s largest positions
- Li-S Energy (ASX:LIS) IPO booms amid excitement over huge market opportunity
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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