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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:

Marley Spoon AG’s (ASX: MMM)

The business model of this company is where customers pay for pre-portioned fresh ingredients in a chilled box that are sorted into bags by recipe. Each meal comes with easy-to-follow recipe cards with photos that make it easy to cook the meal.

It raised money at $1.42 and the share price is now trading at $1.16, so that’s a steep fall of over 18% since the IPO. Marley Spoon has a good brand but it has several competitors so I’d like to see it turn profitable quickly before considering investing.

Pivotal Systems Corporation Inc. (ASX: PVS)

This company is a developer and provider of gas flow control solutions to the semiconductor industry and its hardware and software utilizes advanced machine learning to enable preventative diagnostic capability.

Its CDIs were priced at $1.86 for the launch and the price is now $2.66, meaning it has gained a quick 43% since hitting the ASX.

Primero Group Limited (ASX: PGX)

It’s an engineering contracting company, specialising in providing engineering design and construction services to the minerals, energy and infrastructure sectors.

The company was raising money at $0.40 per share and it’s still trading at $0.40 per share after initially being up. Being flat is better than being down, so it’s not a bad start for Primero.

RMA Global Limited (ASX: RMY)

It owns RateMyAgent, which operates in Australia, America & New Zealand and the real estate auction tipping app, Property Tycoon. RateMyAgent helps real estate agents stand out from the crowd if they’re rated highly by their clients.

The company raised money at $0.25 per share and it’s now trading at $0.195, which means it has fallen by a disappointing 22% since listing day.

Foolish takeaway

Impressively, all four shares made it onto the ASX this week. It’s quite rare for that to happen. There’s a decent chance all four could go on to be decent ASX businesses, however if I could only pick one business to own it would be Marley Spoon. If it turns profitable then I can see it being a good defensive yet growing business to own. Primero and Pivotal are outside my circle of competence, so I won’t be investing.

For now, I’m not going to buy any of them and they can remain as interesting shares to watch.

Instead, I’d rather put my investing money towards one of these top growth shares.

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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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