2021 was the busiest year for deals since 2000, with a record-breaking IPO rush of 1,035 listings in the US, with the biotech and healthcare sectors leading and accounting for 36% of all IPO activity.
While most investors are busy reviewing stocks in their current portfolio, it may come as a surprise which company ranked first in terms of shareholder returns. While it’s not a household name right now, any savvy investor should definitely keep this stock on their radar: Regencell Bioscience RGC. RGC is the best-performing stock of any IPO in 2021, according to stockanalysis.com/ipos/2021/. On August 1, 2022, RGC is still the number one with a 237% return above its $9.50 IPO price 1.
A June 2022 article mentioned that RGC’s total cumulative short volume is over 19 million shares. While the stock has suffered from short-seller attacks since its listing, RGC has performed well. RGC has approximately 2.6 million tradable common shares on the market and has maintained a small free float as the founder and CEO has repeatedly purchased RGC common stock from the open market.
The solid foundation of RGC
As mentioned above, RGC is closely held by the CEO, who owns over 81% of the company. Since going public, he has used $5.9 million of his personal funds to buy RGC stock on the open market.
His consistent stock purchases demonstrate his confidence, dedication and belief in the company and put his money into action. There are few companies where the CEO owns such a large part of the business. The company’s entire management team has also extended the vesting period for its stock options, showing a collective commitment to its purpose and mission to save and improve lives.
Comparison to the IPO Top Performer 2022
A recent stock that has flown to the moon since its IPO in mid-July 2022 is a company founded in 2003 by the Cheung Kong Group of Mr. Li Ka-Shing and Hutchison Whampoa, AMTD Digital HKD. The HKD IPO price was $7.80 and has since gained over 9,000% to close at $742.00 on August 1, 2022. Although RGC is the #1 IPO in 2021, that pales in comparison to HKD’s current performance. Smart traders who have an eye for forensic analysis on companies with low free float and outsized short interests are very fortunate indeed.
RGC was also listed in mid-July and is based in Hong Kong. In fact, there are some similarities between the two companies. Both RGC and HKD are founded by individuals (Mr. Au for RGC and Mr. Li for HKD) who believe in philanthropy and giving back to society. HKD’s uptrend, which has delivered an incredible 90x bagger in a short period of time, has also attracted many short positions against the company. Below you will find a table with the most important key figures:
|
RGC(1) |
HKD(2) |
|
|
IPO date |
July 16, 2021 |
July 15, 2022 |
|
IPO price (USD) |
9.50 |
7.80 |
|
From August 1, 2022 |
31.97 |
742.00 |
|
Share Performance Since IPO (Multiples) |
3.4 |
95.1 |
|
IPO Ranking 2021(3) |
1 |
N / A |
|
IPO Ranking 2022(4) |
– |
1 |
|
Director’s Office |
Hong Kong |
Hong Kong |
|
Major Shareholder (%) |
81.2(5) |
88.7(6) |
|
Daily Short Volume Ratio (1 Month) (%) (see diagrams below) |
5-90(7) |
31-68(8) |
|
Daily Short Volume Ratio (1Y) – Highest (%) (see diagrams below) |
91(7) |
N / A |
Daily short sale volume (%) refers to the number of shares that were short compared to the total volume traded daily.
Only time will tell if RGC reaches similar heights, but the similarities seem interesting.
RGC and HKD comparison table
RGC stock chart since IPO:
RGC Daily Short Volume Ratio (1 Month) (7):
RGC Daily Short Volume Ratio (1Y) (7):
Share chart of HKD since IPO:
HKD Daily Short Volume Ratio (1 Month) (8):
Featured image is from Shutterstock
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