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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:

Diverse Security Needs Limited (to be renamed Parazero Limited) (ASX: PRZ)

The company develops and manufactures safety systems for drones. Its product is called a SafeAir safety box which independently monitors the flight operation of the drone and if a failure occurs it can activate a patented ballistic parachute which also warns people underneath and communicates with the unmanned traffic system.

It was hoping to start trading on 16 May 2018 and raise $7 million at $0.20 per share. The ASX website doesn’t have a date yet for the new listing.

Evans & Partners Asia Fund (ASX: EAF)

Its principal activity is investing in Asia shares, excluding Japan – it’s a fund.

The fund will target a 4% distribution yield of the net asset value per security. It comes with a management fee of 1.25% and a 10% outperformance fee of the excess return of the Fund above the higher of the MSCI Asia ex Japan Net Total Return and the 10-year US Government Bond yield.

It has made it onto the ASX boards and is currently trading at $1.10 per share.

Evans Dixon Limited (ASX: ED1)

It offers financial services including asset management, corporate advisory, institutional equities and fixed interest, private wealth management, self-managed superannuation and stockbroking services.

It was hoping to raise $182.2 million at $2.50 per share, it started with a quick rise to $2.71 but it has dropped back to $2.50 per share.

Gryphon Capital Income Trust (ASX: GCI)

It’s a fixed income trust that invests in a portfolio of Australian fixed income securities. The target return is the RBA cash rate plus 3.50% per annum net of fees through the economic cycle.

It was hoping to start trading on 18 May 2018 and raise $350 million at $2 per share, however it didn’t make it onto the boards on that date and the ASX website hasn’t updated with a new listing date yet.

Koppar Resources Limited (ASX: KRX)

It is a junior exploration company established with the purpose of exploring and developing copper, zinc and other mineral opportunities.

The company was hoping to start trading on 16 May 2018 and raise $4.5 million at $0.20 per share. The company didn’t make it onto the boards, a new listing date is yet to be announced.

Star Combo Pharma Limited (ASX: S66)

Star Combo describes itself as a leading distributor and manufacturer of premium health and natural beauty products. Based in Sydney, the company says it distributes products to both Australian and overseas markets.

It was hoping to raise $7 million at $0.20 per share and it’s now trading at $1.76. That’s a huge return in one week, clearly there is a lot of interest in the business. The company will now have to generate the profit growth to justify the excitement.

Foolish takeaway

Lots of interesting businesses came on the boards this week. Investors seem to think that Star Combo is one to watch for the future, whilst the Evans & Partners Asia Fund could also be interesting.

However, they are all a bit too new for me at the moment, I’d much rather invest in these top shares until I see some results.

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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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