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How these IPOs fared 1 week later

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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:

Galileo Mining Limited (ASX: GAL)

Galileo Mining is exploring for cobalt and nickel resources in Western Australia. Both resources have done quite well in recent years and the vast Western Australia region is known for its abundant resource locations.

The company was hoping to raise $15 million at $0.20 per share, the shares closed yesterday at $0.355, meaning it’s gone up an impressive 77% since it listed.

OneMarket Limited (ASX: OMN)

OneMarket says that its aim is to use tools like natural language processing and AI to help retailers overcome data, technology, and speed-to-market challenges. It is being spun out of Westfield Corp Ltd (ASX: WFD), Unibail-Rodamco-Westfield will retain 10% of the business. It will start with $160 million cash and equivalents.

It wasn’t raising cash, it was listing through a demerger. Existing Westfield shareholders held 90% of the business. Its share price has fallen from $1.53 to $1.325 since listing. Initial shareholders are probably just selling out for some cash. Over the coming weeks and months we’ll see what the market values the business at.

PayGroup Limited (ASX: PYG)

PayGroup’s business is about human resource management software. The payroll services business contributes a majority of the revenue, whilst the human capital management software is another offering.

It was looking to raise $7.5 million at $0.50 per share and it’s now trading at $0.76, meaning it has gone up by just over 50%. It actually started at $0.87 per share, but has since come down.

Unibail-Rodamco-Westfield (ASX: URW)

This is the business that just acquired Westfield and now it’s issuing CHESS Depositary Interests as part of the deal.

It owns and operates a commercial property portfolio in Europe, United Kingdom and United States, predominately shopping centres and also offices and convention & exhibition centres.

The shares/CDIs are currently trading at $14.51.

Foolish takeaway

Both of the Westfield-related shares look like decent options to me. OneMarket has a great starting balance sheet and could change the retail landscape. Unibail-Rodamco-Westfield is now one of the best shopping centre businesses in the world. The other two shares aren’t my type of investment, but that doesn’t mean they won’t do well.

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*Returns as of February 15th 2021

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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