Shares of ride-hailing firm Ryde plunge over 80% on NY exchange

Development concerning but can happen to small tech firms listed in US, say analysts

- Sue-Ann Tan

Business Correspondent Singapore ride-hailing and carpooling company Ryde saw its share price plunge by more than 80 per cent in the past week, a development that market analysts described as concerning, though they added that it can happen to some small technology firms listed in the United States.

Ryde, which is listed on the New York Stock Exchange (NYSE), collapsed to US$2.08 at the close on Sept 12, from US$13.11 the day before and US$12.14 a week earlier.

On Sept 11, the stock had reached a high of US$22.49.

Associate Professor Ben Charoenwong from Insead Singapore noted that Ryde's last announcement was a partnership with Singapore insurance provider Singlife in August, and Ryde's share price had been flat until September.

"Then, seemingly out of nowhere, the stock surged over 40 per cent on Sept 6, only to dramatically reverse course shortly after,”" said the finance expert.

He noted that Ryde usually sees about 20,000 to 200,000 shares traded daily. But in early September, this jumped to over a million shares.

"It appears some large traders might have started building positions around Sept 3, driving up both volume and prices. This likely caught the attention of other investors who jumped in," said Prof Charoenwong.

On Sept 11, the stock then plummeted over 60 per cent on a volume of almost nine million shares.