Close The Loop (ASX:CLG) share price rockets 55% on IPO

As far as public debuts go, this one is a whopper.

| More on:
A group of office workers pump the air to celebrate

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

When it comes to ASX initial public offerings (IPOs), it often seems to go in one of two ways. An IPO can pay off big on its first day. Or it can lead to bitter disappointment with a share price slump.

Fortunately for investors in Close the Loop Ltd (ASX: CLG), this company's inaugural day of ASX trading today seems to fall into the former category.

Close the Loop shares have just IPOed on the ASX boards. And so far, it's going well. To understate it. The company is currently trading at 31 cents a share. That's a whopping 55% ahead of the initial IPO pricing of 20 cents a share that the company took its shares to market at. No doubt there are some champagne corks being unleashed over at the Close the Loop company offices as we speak.

Close the Loop share price rockets on IPO

Close the Loop is a company that is aiming to provide 'end-to-end' solutions for the designing, manufacturing and recycling of products (hence the name). It's actually a newly merged entity. It follows the marriage of the old Close the Loop with O F Packaging.

Here's how CEO Joe Foster described it this morning:

Today, Close the Loop becomes Australia's most advanced vertically integrated design, manufacturing, collection and recycling company, that reduces waste to landfill and gets recycled content back into new products. 

Our award-winning packaging products and regenerative uses for plastics help companies stay ahead of evolving recycling guidelines and regulations.

So the company raised $12 million ahead of its public float from the placement of its shares at 20 cents each. That price valued the company at a market capitalisation of $65.9 million. At the company's current post-IPO price of 31 cents a share, its market cap would be closer to $102.15 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

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 »

Two businessmen shake hands against a tech backdrop, indicating a company IPO or a merger between two technology stocks.

This $85 billion company is about to start trading on the Nasdaq. Here's what you need to know

Arm is set to join the ranks of other AI high-flyers on the Nasdaq tonight.

Read more »

A businessman hugs his computer and smiles.
Materials Shares

The ASX welcomed a new lithium stock today, and it's up 50%!

Investors have been getting excited about this new lithium stock today.

Read more »

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.

Redox share price drops after IPO

One of the biggest IPOs in some time has taken place on the ASX today.

Read more »