Iridium Security’s Trades at 14,000% Premium Are Canceled
A security linked to Iridium Communications Inc. (IRDM), a communications-satellite operator, soared almost 14,000 percent today and triggered a volatility halt because of two trades that were later canceled.
The security climbed as much as $1,985.75, or 13,695 percent, to $2,000.25 in one trade at 9:52 a.m. New York time after jumping to $2,000 at the open of trading in New York. The two trades totaled 147 units and were executed on the Nasdaq Stock Market. Both trades were later voided, according to data compiled by Bloomberg.
The units, which are made up of one common share and one stock warrant, surged 72 percent to $14.50 yesterday and only have changed hands a total of six days in November, according to data compiled by Bloomberg.
The Iridium units rose 12 percent to $16.25 at 4 p.m. New York time after trading resumed following the halt at 9:52 a.m. Volatility circuit breakers are triggered when a security rises or falls 10 percent within five minutes. Iridium’s common shares added 1.8 percent to $6.14.
Robert Madden, a spokesman for Nasdaq OMX Group Inc. (NDAQ), and Ashley Eames, a spokeswoman for Iridium, confirmed that the trades were canceled.
To contact the reporter on this story: Whitney Kisling in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Lynn Thomasson at email@example.com