Equity Story Group (EQS) is a share trading advice platform that is itself now listed on the ASX.
It entered the market this week with a crash, down 27 and a half per cent from its IPO raise price of 20 cents.
So how should shareholders view their losses at this point?
Sydney-based Head Technical Analyst and Director David Tildesley said the company held a tight register.
“We’re looking for the long-term future of Equity Story, what we’re looking for is to grow the business with all the verticals that we do,” he said.
“And we feel very confident and hopeful that given a decent run at it, our share price will hopefully reflect the success we’re going to have in the business over the next two or three years.
“Hopefully we haven’t priced our own IPO too high. What do they say though? The proof will be in the pudding: Do what we committed to and take the story worldwide.”
The company raised $4.64 million through its IPO, its market cap sits around $17 million with shares valued at 14.5 cents as of 1:10pm AEST.
Interestingly, another share trading research company Halo Technologies (HAL) suffered a similar plunge after listing late last month and has been trading at around 74 cents, a price representing a 38 per cent fall from its IPO raise price of $1.20 per share.
In other IPO news, Australian-based provider of assay services to the global mining industry Chrysos Corporation (C79) listed today and the value of shares had dropped as much as 40 per cent as of 2:28pm AEST.
It had raised $183.5 million with IPO shares priced at $6.50 each. Today, shares traded as low as $3.90.
Chrysos uses technology developed at CSIRO to measure gold, silver and copper content in mineral samples.
Managing Director and CEO Dirk Treasure said the company’s technology had “so much potential”.
“PhotonAssay represents the first major advancement in gold assaying in centuries and aims to displace the existing fire assay method,” he said.
In capital raising news, Tombola Gold (TBA) is in a trading halt ahead of a proposed capital raising — a day after it announced it had intersected a zone of copper and cobalt extending 170 metres.
Managing Director Byron Miles said the result came from the first of four drill holes at Little Duke which is in the Cloncurry District of western Queensland.
“The 170 metres of mineralisation from 70 metres beneath surface has the potential to establish this project as a very large target for the copper, gold and cobalt operation located proximate to our flagship Mt Freda Gold Mine that is expected to produce initial gold over the coming months,” Mr Miles said.
Details of the proposed capital raising are due to be released by Tuesday.
Tombola has a market cap of $54.3 million and shares last traded at 6.5 cents.
Black Rock Mining (BKT) has secured $25 million through a placement.
The raise allows the company to strengthen its balance sheet and continue development work for its graphite mine in Tanzania.
The company reported it was on track for construction to begin in the September quarter.
BKT has a market cap approaching $240 million with shares trading down on the news at 24.5 cents as of 1:51pm AEST.
Waste tyre recycling company Pearl Global (PG1) has received commitments from professional and sophisticated investors to raise $3 million through a 2-cent placement.
The funds will be used to develop its thermal rubber treatment plant at Stapylton in Queensland.
It’ll install infrastructure and equipment at the site, to grow it to a full-scale commercial operation.
PG1 has a market cap of $18 million and shares were trading at 2 cents as of 1:54pm AEST.