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Argo Blockchain Shares Fell 14.1% After Its American Shares Debuted on the Nasdaq

Simon Mugo trader
Updated 24 Sep 2021

Shares of Argo Blockchain PLC (LON: ARB) fell 14.1% in the London market after the debut of its American depository shares (ADS) on the Nasdaq Global Select Market yesterday.

The company priced each ADS at $15 representing 10 of its London-listed shares, and offered 7.5 million depository shares representing 75 million of its UK shares.

The depositary shares opened flat but later rallied higher to close at $16.75, an 11.67% premium to the IPO price.

Argo Blockchain listed its shares by filing an IPO prospectus with the U.S. Securities and Exchange Commission (the “SEC”) describing the terms of the proposed offering.

Given the sophisticated nature of US investors and the higher liquidity available in the US markets, Listing on the US markets is a significant achievement for Argo.

The bitcoin mining company raised over $112.5 million via the IPO, which leaves it in a solid financial position to keep advancing some of its capital intensive projects.

The company’s UK shares fell back into the trading range that they had just broken out off, and it remains to be seen whether the shares shall rally higher in future.

The decline over the past two days seems to reflect the US IPO, which valued Argo’s London shares at a discount to their closing price on Wednesday afternoon.

Argo’s American shares were up 2.63% during the US premarket session when this article was published. A rally in the US ADSs is likely to trigger a corresponding rally in its UK shares.

*This is not investment advice.

Argo Blockchain share price.

IG chart of Argo Blockchain share price 24-09-2021

Argo Blockchain shares fell 14.1% to trade at 124.99p, falling from Thursday’s closing price of 145.50p.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading