TIAN RUIXIANG Holdings Inc. (TIRX) stock declined by 79.47% at the last trading close whereas the TIRX stock rises by 17.22% in the pre-market trading session. Following this rise and fall in TIRX stock price, there is no recent news hitting the media. TIAN RUIXIANG Holdings Ltd is a Chinese insurance broker with its headquarters in Beijing. It sells a wide variety of insurance products that are divided into two categories:
- Property and casualty insurance, such as car, commercial property, and liability insurance.
- Life insurance, including individual and group life insurance.
What is happening?
There hasn’t been any news about TIRX in a long time. However, there has been speculation on social media that this stock has been the target of a boiler scheme.
Chinese stocks, on the other hand, have been under pressure for some time. A selloff in a variety of ADRs monitoring Chinese-listed companies has resulted from deteriorating US-China ties. With these stocks, it seems that investors are pricing in higher levels of risk today. These fears have been heightened by reports that the US could delist Chinese companies that fail to meet auditing standards.
On February 2, 2021, TIRX announced the completion of its initial public offering of 3,000,000 Class A ordinary shares at a price of US$ 4 per share. Until deducting underwriting discounts and other associated costs, the Company earned gross proceeds of US$ 12 million from this Offering. In addition, the underwriters have a 45-day option to buy up to 450,000 additional Class A ordinary shares at the public offering price.
The revenue will be used to launch new branches, as well as for research, growth, and operational investment in the Company’s new Internet insurance center and general working capital.
The underwriters for the Offering were Network 1 Financial Securities, Inc. and Brilliant Norton Securities Company Limited. In connection with the Offering, Hunter Taubman Fischer & Li LLC acted as counsel to the Company, and VCL Law LLP acted as counsel to Network 1 Financial Securities, Inc.