The Biome Australia (ASX: BIO) share price just flopped on IPO

This IPO didn't go to plan…

| More on:
A woman sits with her hands covering her eyes while lifting her spectacles sitting at a computer on a desk in an office setting.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Today was a pretty decent day for most ASX investors. The S&P/ASX 200 Index (ASX: XJO) ended up finishing this Tuesday's trading at 7,256 points, up 0.22% for the day. But this positive energy didn't flow through to one ASX company that made its debut on the ASX boards today. That would be the Biome Australia (ASX: BIO) share price.

Yes, Biome shares undertook an initial public offering (IPO) this morning, floating on the ASX boards for the first time. Biome is a healthcare company that's in the business of providing probiotics, nutritional supplements and complementary medicines.

This morning, its pre-float announcement told the markets that its IPO had been successfully completed (oversubscribed in fact), and that it had raised $8 million through pricing its shares at 20 cents each. That gave Biome Australia a total market capitalisation of $40 million.

But unfortunately for these investors, Biome's ASX IPO didn't exactly go as well as the company might have hoped for. Upon its first few minutes of public life, BIO shares opened at around 13 cents each (down 35% from its IPO price). When the markets closed today, Biome shares finished up at just 12 cents each, a nasty fall of 40% from the 20 cents a share price that investors oversubscribed the company's IPO at.

It could have been worse. At one point during the trading day, Biome shares hit 11 cents each, which represented a fall of 45% from the IPO price.

Investors will no doubt be hoping for a better trading day tomorrow.

At this closing price, Biome Australia has an estimated market capitalisation of approximately $24 million.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on IPOs

Man with rocket wings which have flames coming out of them.

The newest ASX IPO stock just rocketed 50%

This IPO has certainly been a success on day one.

Read more »

IPO written in circles with a man holding a smartphone and a laptop open.

Could this rumoured ASX IPO become a billion-dollar takeover target?

There might be a second chance to invest in a similar company to the one set to depart the ASX…

Read more »

IPO written in white with increasing arrows and a man holding out his hand.

Reddit stock soars 48% on debut! Will the ASX IPO market heat up again?

It was a great first day for Reddit.

Read more »

An arrow going upwards with a road sign saying 'IPO ahead'.

Should you buy into an IPO or wait until shares start trading on the ASX?

IPOs can be exciting, but also dangerous for investors.

Read more »

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.

ASX IPO alert: Blockbuster copper listing coming soon

Here's what you need to know about this upcoming IPO.

Read more »

IPO spelt out on a laptop with a red and green bar chart underneath.

Fewer ASX IPOs in 2023, but here's how they've performed

We reveal the top 10 new listings by size and how their share prices have changed to date.

Read more »

IPO written in yellow and stuck in the air.
Materials Shares

Rich listers are buying into the IPO of ASX lithium explorer Kali Metals

There's a new lithium share in town. Here's what you need to know.

Read more »

IPO written in circles with a man holding a smartphone and a laptop open.
International Stock News

The highs and lows of the Instacart $11 billion IPO

Here is a closer look at the latest company to hit the Nasdaq exchange.

Read more »