Xanadu began trading on the Toronto Stock Exchange (TSX) and Nasdaq on Friday under the ticker XNDU. The firm began trading on the Nasdaq at $10 USD per share and by market close its stock was up 15 percent, to $11.50. This is a strong gain compared to broader market turmoil—conflict in the Middle East helped drag the Nasdaq index down nearly five percent through the week ending Friday.
Xanadu’s debut on the TSX, meanwhile, makes it the first Canadian technology company to debut on the exchange since 2021. The firm’s debut also makes it the first pure-play photonic quantum computing business to go public. Xanadu achieved this by merging with Philadelphia-based special purpose acquisition company (SPAC) Crane Harbor Acquisition Corp.
In an interview with BetaKit, Rosenblatt Securities senior research analyst John McPeake said public markets have been in “risk-off mode” since the US-Israel war in Iran began. The major oil-supply disruption has shocked investors. Amid these conditions, he said riskier companies that are farther away from generating significant revenues have been hit the hardest.
McPeake said this weakness has been reflected in quantum stocks, and likely played a role in the level of SPAC investor redemptions that Xanadu experienced. “I think Xanadu unfortunately suffered a little bit from the macro,” he added.
