Hydration Pharmaceuticals (ASX:HPC) share price rockets 31% in 2 days following IPO

Here's all you need to know about the ASX newbie.

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The Hydration Pharmaceuticals Company Limited (ASX: HPC) share price has had a great start to its time on the ASX.

The company debuted on the market yesterday after an initial public offering (IPO) that saw its shares going for 29 cents apiece.

At the time of writing, the Hydration Pharmaceuticals Company share price is 38 cents, 7.04% higher than when it experienced its first closing bell.

That means shareholders who got in on the company's prospectus offer have seen their investment grow by 31% already.

Let's take a closer look at the ASX newbie and how it's been performing so far.

What does the company do?

The Hydration Pharmaceuticals Company – more colloquially known as Hydralyte North America – is responsible for a popular household brand that many readers will know well.

That is, Hydralyte – which offers electrolyte-rich powders, drinks, and tablets. Though, the company doesn't sell Hydralyte products in Australia or New Zealand.

Instead, it has rights to market the products in America, Europe (but not Turkey), China (but not Taiwan), and Hong Kong.  

Hydration Pharmaceuticals Company share price soars following IPO

The Hydration Pharmaceuticals Company hit the ASX at noon on Tuesday, when its share price soared to 35.5 cents on the day.

The company raised $17 million during its IPO by selling approximately 58.6 million shares.  

Most of the funds raised through its IPO will fund its sales and marketing. Though, some will be spent on brand and product development.

Over the 12 months ended 30 September 2020, the company brought in around US$3 million of pro forma revenue. It also saw a pro forma after-tax loss of around US$5.9 million.

For the 12 months ended 30 September 2021, Hydration predicts it will see approximately US$5.4 million of pro forma revenue and a pro forma after-tax loss of around US$6.7 million.

The directors have no intention of paying a dividend soon, though, due to the company being in the development stage.

The company's IPO offer price would have seen it with a market capitalisation of around $46.7 million.

At its current share price, The Hydration Pharmaceuticals Company has a valuation of approximately $61.2 million.

The author has no positions 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.

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