Citi Appointed as Depositary Bank for POMDOCTOR LIMITED Amidst Initial Trading Volatility

Opening

Citi Issuer Services, acting through Citibank, N.A., has been appointed as the Depositary Bank for POMDOCTOR LIMITED (POM), a Chinese online medical services platform, for its American Depositary Receipt (ADR) program. POM's American Depositary Shares (ADS) commenced trading on the Nasdaq Stock Exchange under the ticker "POM", with initial trading marked by notable volatility.

The Event in Detail

POMDOCTOR LIMITED completed its initial public offering (IPO), offering 5 million American Depositary Shares (ADS) at an initial price of US$4.00 per ADS. The total offering size, including the greenshoe exercise, reached US$23 million. Each six ADSs represent one Class A ordinary share of POM. The company's debut on October 8, 2025, saw the stock close with a 0.75% advance on the Nasdaq, after experiencing intraday gains that approached 25% at one point. However, in after-hours trading on October 9, 2025, the stock recorded a 3.72% decline, settling at $3.88.

Citi Issuer Services emphasized its commitment to the partnership. As Dirk Jones, Global Head of Citi Issuer Services, stated:

"Citi is committed to providing POM and its investors with the highest quality ADR services. Our extensive global network and deep capital markets expertise enable us to deliver value to issuers like POM through access to global markets and growth opportunities."

Analysis of Market Reaction

The initial trading performance of POM reflects a dynamic interplay of investor enthusiasm and post-debut adjustments, a common characteristic for many recent IPOs, particularly for companies entering the U.S. market from overseas. While the appointment of Citi as a Depositary Bank is a standard business development, providing POMDOCTOR with robust ADR services and access to global capital markets, the stock's initial volatility highlights investor scrutiny regarding new entrants.

POMDOCTOR operates in the online medical services sector in China, focusing on chronic disease management through its internet hospital and pharmaceutical supply chain segments. The company reported a trailing twelve-month revenue of $47.12 million as of December 31, 2024, with figures indicating no growth over the past three years. Financial metrics reveal challenges in profitability, with a negative earnings per share (EPS) of -0.17 and a high Price-to-Earnings (P/E) ratio of 9999, suggesting a disconnect between market expectations and current financial performance.

Broader Context & Implications

POMDOCTOR's listing occurs within a broader trend of Chinese companies continuing to seek access to U.S. capital markets, despite geopolitical tensions and increasing scrutiny. Since January 2024, 48 Chinese companies have listed on U.S. exchanges, collectively raising $2.1 billion. However, these have largely been small-cap offerings, with the average Chinese IPO in 2024 raising approximately $50 million, a significant decrease from over $300 million in 2021. POMDOCTOR's $23 million offering aligns with this trend of smaller-scale listings.

This trend stands in contrast to the Hong Kong Stock Exchange, which has seen 46 China-domiciled companies raise HK$118.2 billion (US$16.5 billion) over the same period, significantly outperforming the U.S. in terms of capital raised from Chinese listings. Furthermore, the Nasdaq Stock Exchange is reportedly considering stricter listing requirements, including a proposed minimum of $25 million from public offerings for companies primarily operating in China. Such a measure could further impact the viability of smaller Chinese IPOs like POMDOCTOR in the U.S. market.

Looking Ahead

The short-term outlook for POMDOCTOR is likely to include continued stock price volatility as the market digests its initial offering and financial fundamentals. The company's long-term success will hinge on its ability to leverage its Nasdaq listing to expand its online medical services platform, improve its profitability, and demonstrate sustainable growth in the competitive Chinese digital healthcare sector. For the broader market, the performance of POM and similar small-cap Chinese IPOs will serve as an indicator of investor appetite and the evolving landscape for cross-border listings amid potential regulatory changes by exchanges like Nasdaq.