GrabAGun, the company backed by Donald Trump Jr., saw its shares fall nearly 5% on Thursday in premarket trade. This is after they had fallen 24% during their debut at the New York Stock Exchange due to a blank check merger.

The company is one of many businesses owned by the Trump family. Their portfolio includes real estate, media, hospitality and increasingly politically aligned ventures relating to gun rights and conservatism.

According to the prospectus of the gun retailer, Trump Jr. is the oldest son and shareholder of President Donald Trump. His shares are currently valued at approximately $4 million.

Trump Jr. is also on the board of the online retailer for firearms, ammunition, and gun accessories.

Donald Trump's portfolio of golf clubs and hotels, Trump Media & Technology Group’s volatile public debut and now Trump Jr.’s stake in GrabAGun are all examples of how the family brand is being used to attract loyal supporters and investors.

Investors and regulators have scrutinized these ventures that are often tied to the political identity of the president.

In a recent post on X, Trump Jr. stated that "What we are doing with GrabAGun was unthinkable just four years ago when corporate America was at its height of wokeness."

The lukewarm response highlights the dangers of investing in newly listed companies, including those linked to famous figures.

GrabAGun was founded in 2010. It offers a variety of sporting firearms and ammunition, as well as accessories. It expects to gain from the shift in online shopping among younger firearm enthusiasts.

The company went public after it merged with Colombier Acquisition Corp. II. This special purpose acquisition firm is backed by Omeed Malik, President Trump's major donor.

GrabAGun was now part of a group of companies with a right-leaning, such as Trump Media and Chain Bridge Bancorp.

SPACs give their shareholders the option to redeem their shares if they don't like the merger target. Colombier reported "near zero" redemptions, indicating "clear confidence in GrabAGun's business". (Reporting by Manya Saini and Niket Nishant in Bengaluru; Editing by Pooja Desai)

(source: Reuters)