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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:

Euro Manganese Inc (ASX: EMN)

Euro Manganese describes its principal activity as the ‘evaluation and development of the Chvaletice Manganese Project, which involves the reprocessing of a manganese deposit hosted in historic mine tailings in Czech Republic’. It’s a Canadian-based business.

Manganese is important for the production of almost every type of steel. This accounts for about 90% of annual manganese demand. On average, a tonne of steel produced contains 0.5 to 1% manganese, and some speciality steel alloys can contain up to 15% manganese.

According to the company, manganese demand is rapidly increasing in the swiftly expanding field of rechargeable electrical storage, which enables safe storage of high energy capacity.

It was looking to raise $5.2 million via CHESS Depositary Interests (CDI) at $0.26 per CDI and start trading on 1 October 2018. It made it onto the ASX and at first it went above $0.30 but has since fallen back to $0.26, meaning it hasn’t gained or ‘lost’ anything.

Nice-Vend Ltd (ASX: NVD)

Nice-Vend’s principal activity is the manufacture and supply of stand-alone vending machines and textured frozen beverages.

The Israel-based food and beverage technology company has developed quinzee, a stand-alone, fully automatic vending machine. It prepares and serves an assortment of frozen beverages, it also possesses the ability to prepare sugarless frozen beverages, real fruit and other healthy drinks, that provide an alternative to the existing frozen soft drink options.

Two businesses trialling it are global tea giant Wissotzky, which is also an investor, and Caltex Australia Limited (ASX: CTX).

It was looking to raise $7.5 million at $0.20 per share and then start trading on 2 October 2018. Sadly, it seems the company didn’t make it onto the ASX and there isn’t a new expected listed date yet.

Foolish takeaway

Nice-Vend sounds like the more interesting business concept, but neither of them are the types of businesses I’d personally want to invest in at this stage. So I’ll just be watching them on the sidelines for a while, at least.

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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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