Shares of WELLCELL Plunge Over 80% in Early Trading Following Stock Split

Stock News05-21

WELLCELL HOLD (02940) and WELLCELL H-NEW (02477) saw their shares plummet by more than 80% in early trading today, continuing a pattern of sharp declines since the company's recent stock split.

As of press time, WELLCELL HOLD (02940) was down 78.67% to HKD 1.06, while WELLCELL H-NEW (02477) fell 78.7% to HKD 1.05.

The company recently announced its official entry into the AI computing power services sector, focusing on areas such as computing power rental platforms, computing power scheduling and optimization platforms, and Token aggregation APIs. The announcement stated that the company will leverage its existing technological capabilities in ICT communication services, wireless network optimization, and the FoPay payment platform to incubate these businesses and has established a dedicated AI strategy task force.

Notably, on April 21, WELLCELL announced a stock split, subdividing each issued and unissued existing ordinary share with a par value of HKD 0.005 into four subdivided shares with a par value of HKD 0.00125 each, resulting in the issuance of 3 billion shares.

In early May, the Shanghai and Shenzhen Stock Exchanges announced that, due to WELLCELL commencing parallel trading of the split shares, the stock would be included in the list of Southbound Stock Connect securities, effective May 6.

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