Why Did New Century Logistics (NASDAQ:NCEW) Plunge 11.51% Amid Asian Expansion?

On June 5, 2025, New Century Logistics (BVI) Limited (NASDAQ: NCEW) experienced a significant drop of 11.51% in pre-market trading, marking a notable shift in investor sentiment following recent developments.

New Century Logistics has recently made strategic moves to expand its presence in the Asian market. The company has signed a Letter of Intent to acquire a 51% stake in Asiatic Logistics Limited, a move that builds upon their July 2023 Strategic Cooperation Framework Agreement. This acquisition aims to strengthen New Century's logistics ecosystem by creating an integrated Asia-Europe-Middle East corridor, with Japan serving as a key strategic hub.

Asiatic Logistics, established in 2007, specializes in air freight markets, offering services such as the Japan Dedicated Line and e-commerce charter flights. The acquisition will enhance New Century's capabilities in the Asian market, particularly in Japan and Southeast Asia, and is expected to create significant operational synergies. The deal is part of a broader industry trend of consolidation, as logistics providers seek to build end-to-end capabilities across multiple geographies.