Source: OMfotovideocontent / Shutterstock.com
Today marks one of this week’s most exciting trading debuts. LQR House (NASDAQ:LQR), a company that describes itself as “the digital face of the alcohol space,” began trading on the Nasdaq today under the symbol LQR. It focuses on the supply, sales, and distribution of alcoholic beverages, engaging in almost every sales channel. This includes e-commerce, brick-and-mortar sales, and business-to-business (B2B). While it hasn’t been the best trading day for LQR stock, this is still an initial public offering ( ) that investors should be watching closely.
LQR stock has the potential to be one of the late summer’s breakout stocks if it can capture some real momentum.
What’s Happening With LRQ Stock
LQR House kicked off its first day of trading by offering 1 million shares priced at $5 each. As noted, the new LQR stock isn’t off to a great start, with shares currently trading at less than $4. This won’t go down as a great trading debut, but this performance can likely be attributed to general volatility and negative market momentum. As conditions improve in the coming weeks, LQR certainly has the potential to rebound. As Yahoo Finance reports:
“The Company expects to receive aggregate gross proceeds of $5,000,000 from this Offering, before deducting underwriting discounts and other related expenses. In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 150,000 shares of Common Stock at the public offering price, less the underwriting discounts. The Offering is expected to close on August 11, 2023, subject to satisfaction of customary closing conditions.”
The outlet also notes that LQR House intends to use proceeds from the IPO to acquire more brands in the alcoholic beverage space. If it can deliver on this mission, LQR stock will certainly benefit as a result. It is a complicated time for the sector, with leading beer brewer Anheuser-Busch (NYSE:BUD) struggling to make up sales after taking a massive hit from its partnership with a transgender influencer.
LQR House deals in spirits, but with investors souring on BUD stock, the time could be ideal for a new stock that offers exposure to the alcoholic beverage market.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.