Each week I like to look at the upcoming IPOs which are happening on the ASX. It gives me a chance to see if there are any future stars being listed and perhaps get in early on that success story.
Every single share that currently trades on the ASX was a newly-listed share at one point, they should not be avoided just because they are new.
A new float is usually when a private company is looking to sell a small or large portion of the business to new investors. The funds are typically needed for the growth of the business, such as buying property, funding product development or making an acquisition.
If any of the below shares sound interesting, you should read the prospectus to see if you want to invest.
According to ASX Ltd (ASX: ASX) there are a few upcoming listings:
PINCHme.com Inc. (ASX: PIN)
Its principal activity is operating a product sampling and digital promotions platform.
The New-York based business gathers businesses who want customers to try (free) samples. Some brands currently taking part are L’Oreal, Purina, Starbucks and Skittles.
Pinchme also ‘recruits’ members to create a profile of them and their household so the samples can be matched with the households that the businesses want to learn a reaction about for that demographic.
It’s looking to raise $8 million at $0.50 per CHESS Depository Interest (CDI) and start trading on 16 October 2018, which is tomorrow.
Security Matters Limited (ASX: SMX)
Its principal activity is as a ‘categorisation’ technology business.
Security Matters aims to address the anti-counterfeit, brand protection, client liability and track & trace markets.
Security Matters owns and commercialises technology to permanently and irrevocably ‘mark’ any object either solid, liquid or gas, allowing identification, proof of authenticity, tracking supply chain movements & quality assurance for countless products in virtually every industry, according to the company.
It has raised $6 million and was admitted to the official list of ASX on Thursday, official quotation of its shares will start today at 11am, 15 October 2018.
Two interesting businesses this week. However, I’m personally unsure of their earnings growth potential so I’ll be staying on the sidelines at least until they report revenue growth in the next ASX reporting season.
For now, I’d much rather invest in shares with proven profit-growing potential like these top blue chips.
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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.