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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.

If you want to learn more about a share below, I suggest you dig into the prospectus.

Here are how the latest ASX Ltd (ASX: ASX) shares fared:

1414 Degrees Limited (ASX: 14D)

This company commercialising energy storage technology, thermal energy storage system providing a low cost solution to intermittent energy supply and recovering electricity through a turbine on demand.

According to the company, current storage solutions focus on storing and output of electric power, whereas the 1414 Degrees technology delivers an output of heat as well as electric power. Electricity is sourced from renewables or the grid, and is stored as latent heat at constant temperature.  The energy is then dispatched on demand.

Apparently, this system is unlike any other energy system in the world. However, it’s still at an early stage of product development and commercialisation.

It was trying to raise $50 million at $0.35 per share and then start trading on 12 September 2018. It finished trading today at $0.43, meaning it has made a quick 23% since listing. This could be one to watch if its system takes off. However, it’s personally not my type of investment.

Healthia Limited (ASX: HLA)

Healthia has the aim to be one of Australia’s leading allied health companies. It currently owns and operates the My FootDr Podiatry Clinics, consisting of 56 podiatry clinics and owns an orthotics laboratory (iOrthotics) and 50% of an allied health supplies business (D.B.S. Medical).

It has entered into binding agreements to buy 14 Allsports physiotherapy clinics, 9 other physiotherapy Clinics, 16 podiatry clinics, 7 Extend Rehabilitation branded hand therapy Clinics, the remaining 50% of the issued share capital of My FootDr and a further 25% of D.B.S. Medical, bringing the interest owned by the Company to 75%.

In FY20 onwards it’s targeting dividend payments of between 40% and 60% of NPATA to shareholders.

It was trying to raise $26.8 million at $1 per share and then start trading on 11 September 2018. It’s now trading at $1.27, meaning it has gone up by 27% in the short time since listing. I could be interested in this one in time.

Foolish takeaway

Both of these businesses sound promising and if they are successful with their plans they could turn into decent mid-caps in the longer-term. However, they are both far too new for me and I’d want to see at least a year of financial results and achievements.

However, in the meantime I’d much rather buy these top shares for my portfolio because they have proven track records of creating shareholder returns.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of ASX Limited. 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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