The first week after listing can give a clear indication of how the market will treat a company until its first report is released. Last week I wrote an article about upcoming IPOs, so today I'm going to see how they fared.
Here's how they got on:
Elixinol Global Limited (ASX: EXL)
Elixinol is the newest pot stock onto the ASX, it's had a great start. It was aiming to raise $20 million at $1 per share and it's currently trading at $1.57 per share. This means the initial investors are up an incredible 57% in just two days.
Pot stocks are potentially some of the most exciting opportunities because states and countries are generally becoming more accepting of cannabis for various uses, such as medicinal.
The recent Australian government export regulation change is likely a big cause as to why the Elixinol share price has smoked the ASX since listing.
Jayride Group Limited (ASX: JAY)
Jayride's business model is about organising the transfer from (for example) the airport to your accommodation via a mode of transport you're happy with such as a luxury private car or shared shuttle.
It didn't end up listing on the expected date, but I do note that among its staff is Getswift Ltd's (ASX: GSW) former global chief information officer Jamila Gordon. It could be one to watch when it does hit the exchange in a few days or weeks.
Third Party Technologies Inc. (ASX: 3PT)
Third Party Technologies offers clients an API platform for new businesses to have easy access to US financial market information. It wants to help businesses create brokerage accounts, transfer funds, research companies and trade.
Third Party also didn't end up listing on the expected date. The ASX still lists the proposed listing date as 5 January 2018, so it remains to be seen when Third Party shares will hit the market.
Foolish takeaway
All three businesses could have exciting futures, but it goes to show how the microcap end of the market can go unexpectedly when trying to list.
