Khaz­anah-backed, newly-listed cloud de­vel­oper surges 2,000%

The Star Malaysia - StarBiz - - News -

NEW YORK: Traders should have some fun with this small-cap stock whose quadru­ple-digit gain has man­aged to go un­der the radar.

Phunware Inc, a cloud soft­ware provider that man­ages the app de­vel­op­ment life­cy­cle, is off to a dra­matic start in 2019, with shares hav­ing climbed more than 2,000% from last year’s low.

The rally started after the com­pany con­sum­mated its merger with Stel­lar Ac­qui­si­tion Inc in late De­cem­ber, thrust­ing it into the pub­lic mar­ket.

Chief tech­nol­ogy of­fi­cer Luan Dang, who was an an­gel in­vestor in Von­age Hold­ings Corp, be­came the sec­ond largest holder with a 683,534-share stake. Malaysia-based in­vest­ment fund Khaz­anah Na­sional Bhd is the big­gest in­vestor with 2.2 mil­lion shares.

Shares ended 2018 at US$14.26 and closed at a record US$220 on Wed­nes­day. After ini­tially ex­tend­ing its me­te­oric rise on Thurs­day – surg­ing as high as US$550 – the stock sub­se­quently turned sharply lower, end­ing down 29% on the day at US$157.

It was halted mul­ti­ple times for volatil­ity rea­sons. Vol­ume amounted to 29,170 shares for a to­tal traded value of US$2.2mil.

At cur­rent lev­els, Phunware has a mar­ket cap­i­tal­i­sa­tion of about US$4.4bil, up from US$56.5mil at the end of last year.

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