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How these IPOs fared 1 week later

The first week of a company being on the ASX boards can be very telling. The market doesn’t get any new information until the next quarterly or half-year result, so we can get a sense of the market sentiment from how the share does in its first week.

Of course, how the market treats a share doesn’t ultimately mean anything. But, it can be interesting nonetheless.

Here are how the latest ASX shares fared:

Awati Resources Limited (ASX: AWA)

Awati’s principal activity is gold exploring, it apparently has nine prospective exploration licences and one exploration licence application.

It was hoping to raise $4.5 million at $0.20 per share and start trading on 25 April 2018, however it doesn’t appear to have made it onto the ASX boards. The ASX is yet to update the market as to when it expects Awati to start trading.

ClearVue Technologies Limited (ASX: CPV)

ClearVue’s principal activity is electrical components and equipment that allow visible light to pass through glass whilst deflecting invisible wavelengths of light to the edges of the glass where they are converted into electricity.

It was hoping to raise $6 million at $0.20 per share and start trading on 25 April 2018, ClearVue also appears not to have made it onto the ASX boards. The ASX has not said when it expects ClearVue to start trading.

L1 Long Short Fund Limited (ASX: LSF)

L1 Long Short Fund is one of the newest, and now biggest, listed investment companies (LICs) on the ASX.

It raised money at $2 per share and it’s currently trading at $2.01. Obviously, you can’t expect a lot to change with a LIC in just a week. I will be very interested to see how this LIC performs and I’ll be very interested to see what its first disclosure update reveals about its investments.

Smiles Inclusive Limited (ASX: SIL)

Smiles Inclusive’s principal activity is unashamedly rolling-up other dental practices to expand its network.

It raised money at $1 per share and is now trading at $1.09, representing a refreshing 9% gain in its first week for investors. Future share price growth will need to come from business growth (acquisitions) for a sustainable higher share price.

Vonex Limited (ASX: VN8)

Vonex’s principal activity is technology, in the Voice over Internet Protocol sector.

The company was hoping to raise $7 million at $0.20 per share and start trading on 26 April 2018, however it failed to do so.

Foolish takeaway

Perhaps unsurprisingly, the smallest businesses were the ones that didn’t make it onto the ASX. Smiles Inclusive is one to watch for people who like a roll-up strategy, whilst L1 could be a very interesting option for investors who prefer to invest in LICs that use index-unaware strategies.

However, for now I’d much rather invest in growth stocks that I am familiar with like this exciting growth share.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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