How these ASX 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:

AXS Group Limited (ASX: AXS)

AXS Group’s principal activity is being an integrated software solution provider to the finance, insurance and funds sector.

The software is used to originate and service any asset class until the end of its use. Its clients have entered over $100 billion in assets and in transactions onto the software platform. It aims to save time, reduce labour & workflows and lower costs for organisations.

It was looking to raise $7 million at $0.25 per share and start trading on 28 November 2018. It didn’t make it onto the ASX boards and as of today there isn’t a new expected listing date.

EMvision Medical Devices Limited (ASX: EMV)

EMvision Medical Devices’ principal activity is the development and commercialisation of medical imaging technology.

The company’s technology is used to create images of the brain and other organs. EMvision says the technology is non-invasive, safe and cost-effective. Its initial focus is neurological conditions, specifically stroke care. The CEO, Dr Ron Weinberger, used to be the CEO of Nanosonics Ltd (ASX: NAN).

EMvision was looking to raise $6 million at $0.25 per share and start trading on 30 November 2018. It also didn’t make it onto the ASX and there isn’t another expected listing date.

Qualitas Real Estate Income Fund (ASX: QRI)

Its principal activity is as a listed investment trust (LIT) investing in secured real estate loans in Australia and New Zealand.

The LIT will try to provide monthly income and capital preservation by investing in a portfolio of investments that offers exposure to real estate loans secured by first and second mortgages, mostly located in Australia. It’s targeting an 8% return per annum after fees and expenses.

It was looking to raise $500 million at $1.60 per share and then list on 27 November 2018. It’s now trading at $1.65, meaning it has gone up by 3% since listing.

Redcape Hotel Group (ASX: RDC)

Redcape’s principal activity is owning and operating pubs & hotel in Australia.

It owns 29 venues, along with 21 bottle shops, three accommodation venues and The Australian Brewery.

Redcape was looking to raise $60 million at $1.13 per share and list on 30 November 2018. It’s now trading at $1.05, meaning it has dropped 7% since listing. It has launched a buyback to support the share price.

Foolish takeaway

With rising interest rates, owning debt could actually be a useful investment, but I’m wary of real estate loans at this stage in the cycle.

Redcape would be the only one I’d consider investing in, but it’s not the type of business I’d want to invest in. I think there are better options out there for your portfolio.

5 Companies we like better than Redcape

When ace stock picker Scott Phillips has a buy recommendation, history suggests it can pay to listen.

Scott recently revealed what he believes are the five best ASX stocks for investors to buy right now… and Redcape wasn’t one of them! That’s right — he thinks these 5 stocks are even better buys.

See the 5 stocks

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