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:
Nickel Mines Limited (ASX: NIC)
This company wants to become a globally significant, low cost producer of 'Nickel Pig Iron', which is a key ingredient for the production of stainless steel.
Nickel Mines holds an 80% economic interest in the Hengjaya Mineralindo Nickel Mine, which is located in Central Sulawesi, Indonesia.
The company has a collaboration and subscription agreement with Tsingshan, China's largest stainless steel producer.
It was looking to raise $200 million at $0.35 per share and then start trading yesterday. It finished trading yesterday at $0.28, meaning it has fallen by 20%. Not a good start.
Tempus Resources Ltd (ASX: TMR)
The company has a 90% interest in a business which is the registered holder of the Montejinni Project in the Northern Territory and the Claypan Dam Project in South Australia. Its focus will be looking for copper but it will also look for other resources.
Tempus Resources was looking to raise $5 million at $0.20 per share and then start trading on 15 August 2018. It finished yesterday at $0.23 per share, a pleasing 15% gain in its early listed life.
Foolish takeaway
Copper could be a good resource to own over time, but resource-based investments are not my style so I'm giving both a miss. Nickel Mines now looks more attractive than its IPO price, but I'd rather invest in businesses that have their own pricing power.
