Bloomberg — MGO Global Inc. (MGOL), the manager of a clothing and lifestyle brand for football star Lionel Messi, is encountering another high-volume wave of price swings in the first day since its volatile debut.
Shares briefly fell below the $5.00 initial public offering price on Tuesday after jumping to $7.10 during premarket trading. More than 12 million shares traded as of 11:20 a.m. in New York. The whipsaw follows a 232% intraday surge during MGO’s debut on Friday that was erased entirely by the session’s close.
Retail traders have been actively discussing MGO Global in online forums on Tuesday. The stock is among the 15 most-traded assets on Fidelity’s platform as of 11:11 a.m. in New York and is trending on popular chatroom Stocktwits.
Individual investors joined Friday’s volatile debut, trading $6.2 million worth of stock. However they held on to just $740,000 of shares over the holiday weekend, Vanda Research data show.
Dramatic debuts like MGO Global have become increasingly common among small-cap listings. Last year’s pattern of pops and ensuing selloffs has drawn scrutiny from regulators and stock exchanges.
Messi, who led Argentina to its World Cup victory last month in Qatar, is not a disclosed shareholder in MGO Global. He instead receives royalty payments that comprise 12% of net sales, according to the IPO filing.
Read More: Lionel Messi’s MGO Global Is Latest in Tiny IPO Trading Frenzy
--With assistance from Sunil Kesur
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