Nasdaq Scrutinizes Share Allocations After Mysterious IPO Gains
- Exchange is asking for more details on small-cap IPOs
- Some recent new listings have seen huge stock price swings
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Nasdaq Inc. is asking for more specifics relating to share allocations for initial public offerings by small-cap firms as it boosts scrutiny in a corner of the market that’s seen a number of huge price swings.
The exchange in the past few weeks asked a slew of applicants for information including the names and account details for individuals being allocated shares during the IPO process, according to Gordon Tsang, a partner at Hong Kong-based law firm Stevenson, Wong & Co. Nasdaq also requested detail on the quantity of shares allocated and the brokerages involved, said Tsang, who has advised on recent US IPOs including Magic Empire Global Ltd. and Top Financial Group.