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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:

Coronado Global Resources Inc. (ASX: CRN)

Coronado’s principal activity is mining coal.

It operates coal mining in one location in Queensland’s Bowen Basin and three locations in the Central Appalachian region of the US. It generated more than more than 20 million tonnes of saleable coal production in the 2017 calendar year.

It was looking to raise capital by issuing CHESS Depository Interests (CDI) at $4.00 each, then list last week. It’s now trading at $3.48 per CDI, which means it has already fallen by 13% since listing. Some resource analysts said that it was being sold at the top of the market.

International Cobalt Resources Limited (ASX: ICR)

International Cobalt Resources’ principal activity is exploring and mining for cobalt.

The company has secured a number of tenements, including some near the aptly-named Canadian town of Cobalt in Ontario. It hopes to mine cobalt, nickel and gold. Canada will be the main focus but is also looking for locations in other countries.

It was looking to raise $6 million at $0.30 per share and then list last week. Sadly it didn’t make it onto the boards and a new expected listing date is yet to be announced by the ASX.

Shekel Brainweigh Ltd (ASX: SBW)

Shekel Brainweigh’s principal activity is ‘technology’.

The Israel-based business has been developing, manufacturing and distributing advanced weighing technology solutions for the retail, healthcare and manufacturing markets for over 40 decades.

It is now researching and developing a number of products for the retail industry such as a ‘product-aware’ shelf that knows what is on it and can provide feedback on inventory levels. Another example is a digital scale at supermarkets which recognises the fruit, vegetable or meat that is being weighed.

It was looking to raise $10 million at $0.35 per share and then list last week. It also didn’t make it onto the ASX and there is no new expected listing date.

Straker Translations Limited (ASX: STG)

Straker Translations’ principal activity is translation services.

Straker describes itself as the world’s leading translation technology platform so that its clients can sell products and services in any language. It boasts that a number of large businesses have used its services such as Caterpillar, Barclays and Garmin.

It was looking to raise $21 million at $1.51 per share and then start trading last week. It’s now trading at $1.71, suggesting it has gone up 13% so far since listing.

Foolish takeaway

If I had a choice of investing in Straker or Coronado I would go for Straker – I don’t believe coal has good short-term or long-term prospects. However, I don’t want to invest in Straker either right now.

I’d much rather invest in shares with proven long-term growth records such as these top stocks that also pay growing dividends.

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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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