While diversification and long-term principles should still be the fundamental base of a healthy strategy, ASX small-caps can provide increased potential compared to blue-chip stocks.

For investors looking to monitor smaller companies with big potential, brokers have tipped these two options to rise significantly.

Biome Australia Ltd (ASX: BIO)

Biome Australia develops and commercialises clinically backed innovative live biotherapeutics (probiotics), marketing 18 products under the 'Activated Probiotics' Brand. 

As is the case with small-caps, it has experienced plenty of volatility recently. 

It was making headlines yesterday after rocketing 20% in a single session after signing a new manufacturing agreement.

In a new report from Bell Potter, the broker has predicted this rise can continue in the next 12 months. 

The broker has a $1.00 price target on this ASX small-cap, indicating a massive 270% upside from current levels. 

In the report, Bell Potter highlighted that Biome Australia has announced an initiative to derisk and diversify its supply chain. The company is doing this by introducing contract manufacturing in its home market of Australia of assembly and packaging of its Activated Probiotics range. 

The initial two-year term with Specialty Probiotics Australia (SPA) is on an exclusive basis. It is subject to limited carve outs and meeting quality and delivery standards.

Conceptually, this is a positive and material development that should enhance operating leverage and BIO's capacity to plan for growth, which has been impeded to some degree by relying completely on importing finished product. Assuming BIO continues to build its domestic franchise, we can see a path to $100m in Australian sales, with attractive margins.

Imricor Medical Systems Inc (ASX: IMR)

Imricor Medical Systems is a medical device company. It engages in the design, manufacture, and distribution of magnetic resonance imaging (MRI) compatible products for cardiac catheter ablation procedures.

It has also experienced volatility in 2026, but remains up 6% year to date. 

The team at Morgans believes this ASX small-cap could be an upside play. 

There are multiple near-term catalysts approaching which when achieved will see a share price re-rating. IMR is now well funded to deliver on clinical, regulatory, and commercial objectives. We have updated our model and valuation for the capital raise. Our target price is A$2.61 (was $2.63). We maintain our SPECULATIVE BUY recommendation.

From yesterday's closing price of $1.74, the price target from Morgans indicates a 50% upside for this ASX small-cap. 

The post 2 ASX small-caps with 50% and 270% upside according to Brokers appeared first on The Motley Fool Australia.

But what if you could triple your money? Well, Bell Potter thinks that could be possible with the ASX share in this article.

However, as it is a small cap, it may only be suitable for investors with a high risk tolerance.

Let's see what the broker is recommending.

Which ASX share?

The share that Bell Potter is recommending to clients is Biome Australia Ltd (ASX: BIO).

It is a developer and commercialiser of clinically backed innovative live biotherapeutics (probiotics), marketing 18 products under the Activated Probiotics brand.

Bell Potter was relatively pleased with the company's performance during the third quarter, especially given that it is traditionally a seasonally weak quarter. It said:

BIO reported cash receipts of c.$4.9m, flat over the pcp and down on the previous two quarters. Net Operating Cash Outflow of c.-$1.2m, down from c.+$1.2m in 2Q26, reflected inventory build ahead of the peak 4Q cycle and softer cash receipts, which seems to reflect working capital timing issues. Sales were not disclosed, but we estimate sales were c.$5.5m, up c.21% yoy.

The March quarter is seasonally weak, affected by the holiday period, but this was weaker than expected based on historical patterns. BIO also increased marketing spend ahead of the cold & flu season. Cash finished flat at c.$3.4m with drawn debt at c.$2.1m and unused finance facilities at c.$2.9m.

The broker highlights that milestones are being achieved by the ASX share. This includes both sales milestones and cost milestones. It adds:

BIO has now passed the sale of 1 million boxes of its core brand Activated Probiotics on a R12M basis and is on track to deliver 100m doses through community pharmacy/ health practitioners. It is an important milestone for the business, with pharmacy scan data continuing to show BIO has the fastest growing probiotic brand within community pharmacy and is approaching the number one probiotic product in total pharmacy sales by volume and value.

BIO appears close to finalising its onshoring strategy and implementation that should deliver a structural improvement to COGS and gross margins. An update to the market is expected later this year, that should address the current concentration risk of importing 100% of product, along with freight and supply chain disruption risk. An efficient approach to onshoring should be supported by investors.

Big potential returns

According to the note, Bell Potter has retained its buy rating and $1.00 price target on the ASX share.

Based on its current share price of 31 cents, this implies potential upside of over 200% for investors between now and this time next year.

Speaking about its recommendation, Bell Potter said:

Despite some seasonal weakness, BIO has indicated that 4Q26 should be a record quarter and that FY26 should provide a step change in EBITDA performance v FY25. Our estimate of YTD sales is c.$18m and we have decided to lower our FY26e sales by c.4.1% to c.$25.6m (which would still result in a record quarter) and have offset this through a lift in our gross margin to reflect favourable movement in FX rates (AUDEUR) which have moved c.9% since 1H26.

Our EBITDA estimate is unchanged, and we have maintained our estimates beyond FY26. If BIO concludes an onshoring arrangement, there could be tailwinds to our gross profit / EBITDA estimates.

The post Top broker predicts 200% return for which ASX share? appeared first on The Motley Fool Australia.

So let's have a look at what they reported.

Records across the board

Biome said in late February that its first half net profit had more than doubled, up 172% to $1.18 million, on record half-year sales revenue of $12.4 million.

This was up an impressive 40% on the previous corresponding period, and the company said it was sitting on an annualised revenue run rate of about $25.8 million coming out of the second quarter of the year.

Biome said in its statement to the ASX that its products were the fastest-growing probiotic range in the Australian community pharmacy, with all of its product range growing.

It was also the number two-ranked brand across all vitamins in the Terry White pharmacy chain.

As the company said at the time:

The Australian pharmacy channel continues to be the primary growth engine. Pharmacy scan data confirms Activated Probiotics is the number 1 probiotic brand by revenue in community pharmacy and number 2 overall when including Chemist Warehouse, and the highest growth brand in the category. Biome Daily is on track to become the number 1 probiotic product in Australian pharmacy by units. Every product in the Activated Probiotics range grew through the half, with particularly strong performance from Biome Baby, Biome Dental, Biome Her and Biome Daily Kids.

Biome was also set to launch its first major above-the-line advertising campaign, coming into the Australian winter season, advertising across digital, outdoor, and co-branded activity with key retail partners.

Looking beyond the first half results, the company also announced a distribution deal for its probiotic products in Canada in January with a company called FullScript Canada.

Shares looking cheap at this ASX biotech

The team at Bell Potter have looked at the recent profit report and likes what they see.

As they said:

Biome maintained sales momentum in Australian Pharmacy as well as introduced new retail channels with Mecca (beauty vertical) and Go Vita (health food). Same store sales growth continued to be strong across all banner groups and every product in the portfolio grew its sales over the period. Biome continues to progress planning for its long-awaited onshoring initiative. It seems like Biome is close to a decision on its path to build greater efficiency, resilience and margin accretion.

Bell Potter has maintained its $1 price target on Biome shares, compared with 42 cents currently.   

The post This small cap ASX biotech could double in under a year, Bell Potter says appeared first on The Motley Fool Australia.

Many small-cap companies are depending on clinical trial success, public or private funding, and more to generate consistent profits. 

Because of these risks, share price volatility is common amongst this asset class. 

However, the team at Bell Potter is optimistic about two ASX small caps following important results. 

If you are considering adding a speculative small-cap stock to your portfolio, these two could be worth watching. 

Biome Australia Ltd (ASX: BIO)

Biome Australia (BIO) develops and commercialises clinically backed innovative live biotherapeutics (probiotics), marketing 18 products under the 'Activated Probiotics' Brand. 

The company made headlines earlier this month after it struck a distribution deal for its probiotic products in Canada.

This sent its share price 8% higher on February 2nd. 

Since then, its share price has retreated; however, yesterday, it jumped 6% on first-half FY26 results.

The company reported net profit of $1.18m, up 172% from the prior period, record H1 EBITDA of $1.47m, and record half-year sales revenue of $12.40m, up ~40%. 

Following this announcement, Bell Potter provided updated guidance on the ASX small-cap stock. 

The broker pointed out that the company maintained sales momentum in Australian Pharmacy as well as introduced new retail channels with Mecca (beauty vertical) and Go Vita (health food). 

The broker maintained its buy recommendation and $1 price target. 

From yesterday's closing price of $0.43, this indicates an upside of approximately 132.6%. 

We look forward to the FY26 result, in which we expect to see further improvement in 2H26 sales and margins and more colour on geographic segmentation. Given 1 yr fwd multiples are now c.13x, but the FCF yield is >6% and ROE is >40%, BIO screens positively for long-term fundamental investors.

EMvision Medical Devices Ltd (ASX: EMV)

EMvision Medical Devices is an Australian medical device company. The company is focused on research and development and the commercialisation of neurodiagnostic technology for stroke diagnosis and monitoring. 

Yesterday, the company released its half-year report. Following this announcement, Bell Potter released an updated outlook on the ASX small-cap stock. 

Bell Potter reinforced that CY26 is a pivotal year for the company, with an expected successful completion of the current validation trial, leading to potential FDA De Novo clearance in 4Q CY26/1Q CY27. 

This will be a critical value inflection point for EMV and is expected to be supported by the various First Responder feasibility studies, with updates during CY26.

Bell Potter maintained its speculative buy recommendation on the company, along with a price target of $3.150. 

From yesterday's closing price of $1.775, this indicates an upside of 77.5%. 

The post Two small caps that could double this year appeared first on The Motley Fool Australia.

The company said in a statement to the ASX on Monday that all of its biome-activated probiotics products had been approved for launch on Fullscript Canada, which services more than 100,000 practitioners and five million patients across North America.   

The company added:

The Fullscript partnership represents a significant milestone in Biome's Canadian expansion, providing access to the dominant platform for practitioner-to-patient supplement dispensing across the region. The North American integrative medicine market has grown at a 25% CAGR, with approximately 80% of healthcare professionals now recommending supplements in some capacity.

Biome Australia said Canada had a stringent regulatory framework which creates a significant barrier to entry, "favouring established, compliant brands like Activated Probiotics''.

Building on established wins

The company said the new agreement was complementary to its existing partnership with Ecotrend Ecologics, which was one of Canada's leading natural health products distributors.

The company elaborated further:

This dual-channel approach ensures Biome's Activated Probiotics range is accessible to practitioners regardless of their preferred dispensing model, whether maintaining in-clinic inventory through wholesale ordering or utilising Fullscript's innovative e-prescribing platform that ships products directly to patients' homes.

Biome Australia Managing Director Blair Norfolk said the new agreement was significant for the company.

Securing approval on Fullscript is a pivotal milestone in our Canadian expansion. Combined with our existing Ecotrend partnership, we now have complete coverage of the Canadian practitioner market, traditional wholesale through Ecotrend for in-clinic dispensaries, and digital direct-to-patient through Fullscript. This dual-channel approach removes any barriers to practitioners choosing Activated Probiotics for their patients. This partnership demonstrates continued momentum in our Vision 27 international expansion strategy. We're systematically building scale across key markets, Canada, Ireland, New Zealand and the UK—establishing Biome as a truly global leader in evidence-based microbiome health. Fullscript's broader platform reach positions us well for ongoing growth opportunities.

Biome Australia shares were 8.3% higher at 48.7 cents. The company was valued at $101.3 million at the close of trade on Friday.

The company released a trading update last month, which said that second-quarter revenue was $6.48 million, up 40.9% on the previous corresponding period and up 9.1% on the first quarter of the year. The company said this was particularly strong given that the Christmas trading period was traditionally softer.

First half revenue of $12.42 million was up 40.2% on the previous corresponding period.

The post This probiotics company has just struck a distribution deal, sending its shares sharply higher appeared first on The Motley Fool Australia.

Before investing in small-cap stocks, it's important to remember they can come with increased volatility. 

Many small-cap companies operate pre-profit, relying on external/government funding for research and development. 

This can create large fluctuations in share price. 

On the flip side, there is always the possibility of small-cap companies becoming the large-cap stocks of the future. 

With this in mind, here are two that have drawn attractive price targets from Bell Potter. 

Biome Australia Ltd (ASX: BIO)

Biome Australia develops and commercialises clinically backed innovative live biotherapeutics (probiotics), marketing 18 products under the 'Activated Probiotics' brand.

Activated Probiotics is a range of live biotherapeutic products aimed to help prevent and support the management of various health concerns. 

Its stock price is down more than 30% over the last 12 months. However, it has risen 7% so far in 2026. 

The team at Bell Potter released a new report on Biome Australia following its quarterly activities and cash flow report.

Bell Potter said the 2Q26 result was excellent. 

Results included: 

• Quarterly EBITDA / operating cash flow passing $1m for the first time
• 2Q26 sales had been pre-released and were up c.41% yoy to c.$6.5m
• Cash receipts were up c.43% to c.$6.2m
• Annualised run rate on sales is now c.$26m, while gross margins are being maintained at >61%

The broker has maintained its buy recommendation and 12-month price target of $1 on this ASX small-cap stock. 

From yesterday's closing price, that indicates an upside of more than 122%. 

We have adjusted our 1H26 estimate to reflect the EBITDA beat, although we are maintaining our FY26 estimates. It is encouraging to see operating leverage begin to flow through to the financial results. Free cash flow generation should be the final hurdle to attracting wider investor interest. We look forward to the HY update that should enable investors to gain further insight into progress on international expansion and brand development through the Mecca partnership.

AML3D Ltd (ASX: AL3)

Bell Potter has also maintained its speculative buy recommendation on ASX small-cap defence stock AML3D Ltd. 

This update came after the company's quarterly report yesterday, which included significant order growth.

AL3's December 2025 quarterly report points to increased system orders in the US, emerging demand signals from the UK and European defence sectors and ongoing R&D in Australia to support the next generation of ARCEMY systems.

Bell Potter said the company's order book is now $16.5m, which includes $9m of orders on hand at the opening of FY26 plus more recently announced orders including $1.7m from FasTech (US contract printer), $4.5m from HII (Newport News Shipbuilding ordering two ARCEMY systems), and $1.2m from Austal (for a rapid deployment system). 

AL3 retained a strong cash position at quarter-end of $29m (prior quarter $31m), with no debt. 

The broker has a price target of $0.40 on this ASX small-cap stock, which indicates an upside of 122%. 

AL3's technology is particularly suited to maritime applications, giving it strong leverage into demand growth from the US Navy's Maritime Industrial Base and the US SHIPS Act. Over FY26-27, we expect AL3 to increase deployment of ARCEMY  systems to the US and Europe, increase prototyping activity and ultimately commence commercial scale production of components.

The post Are these ASX small-cap stocks about to double? appeared first on The Motley Fool Australia.

At the time of writing, the Biome share price is up 10.84% to 46 cents, making it one of the stronger performers on the ASX today.

By comparison, the broader S&P/ASX All Ords Index (ASX: XAO) is currently flat.

So, what did Biome report, and what else could be driving the share price higher?

Sales keep growing despite a tough quarter

According to the release, Biome reported Q2 FY26 revenue of $6.48 million. That result represents 40.9% growth compared to the same quarter last year and 9.1% growth compared to the previous quarter.

This is a strong result because the December quarter is usually a slower time for the business. There are fewer trading days, and pharmacies often focus more on gift items than health products.

Even with those challenges, Biome still delivered its strongest second-quarter result on record. This shows demand for its probiotic products remains strong.

A solid first half of the year

Looking beyond the quarter, Biome also shared its half-year results for FY26.

Total sales for the first half came in at $12.42 million, which is 40.2% higher than the same period last year. This compares with $8.86 million in the first half of FY25.

Management said the result reflects continued demand for its Activated Probiotics products. These products are backed by clinical research and are mainly sold through healthcare practitioners and pharmacies.

Why investors are paying attention

There are a few reasons why the market has responded positively today.

First, revenue growth above 40% is impressive for a consumer healthcare company. Second, achieving that growth during a seasonally slower period makes the result even more encouraging.

Biome also operates in the healthcare sector, which many investors see as more defensive. Demand for health products often holds up better when economic conditions are uncertain.

With a market capitalisation of around $102 million, investors may be starting to reassess how fast Biome can grow if current trends continue.

What to watch next

While today's update focused on sales, profitability will be the next area of interest for investors. The market will now start looking for signs that growth is translating into improving earnings.

But so far, Biome appears to have started FY26 well.

The next few months should give a clearer picture of whether that growth can continue.

The post This ASX small-cap stock just jumped 10%. Here's why appeared first on The Motley Fool Australia.

The company develops and commercialises clinically backed innovative live biotherapeutics (probiotics), marketing 18 products under the 'Activated Probiotics' brand.

Activated Probiotics is a range of live biotherapeutic products aimed to help prevent and support the management of various health concerns. 

Yesterday, the company announced the launch of its first human clinical trial. 

What is the trial?

The company is embarking on its first human clinical trial for its proprietary probiotic strain, Lactobacillus plantarum BMB18 (BMB18).

According to Biome Australia, the human clinical trial will investigate the efficacy of BMB18 in patients experiencing digestive symptoms (e.g. bloating, discomfort) and/or occasional sleep or mood disturbances, and examine its impact on digestive function, mood, sleep and quality of life.

According to the company, the strain demonstrated an ability to effectively modulate immune responses and inflammation. It also can reduce oxidative stress, and maintain intestinal barrier integrity. 

The trial follows positive outcomes with in vitro studies conducted by a BIO research partner, where the strain was shown to effectively modulate immune responses and inflammation, reduce oxidative stress, and maintain intestinal barrier integrity. 

The trial is expected to commence in February 2026, lasting 12 months, with the trial conducted by La Trobe University. 

Speaking on the trial, Biome Managing Director and Founder Blair Norfolk said:

The registration of our first human clinical trial on L.P. BMB18 represents years of dedicated research and development work by the Biome team. The strong positive outcomes from our in vitro studies provided the foundation for this next critical phase of clinical validation.

Why is this significant for Biome?

Following the announcement, Bell Potter released a new report on the ASX small-cap stock. 

It said Biome Australia is aiming to further differentiate itself in the gut health market through product innovation across its existing products and enabling new product launches.

According to the report, by owning its own strain, this ASX small-cap can enhance product yield and as strains form a substantial part of a products formulation, lower its costs of goods sold, thereby improving its gross margins. 

This drives improvement in BIO's intrinsic value and qualitative elements. 

Bell Potter said this also provides future licensing opportunities to other operators.

Significant upside 

In yesterday's report, Bell Potter maintained its buy recommendation on this ASX small-cap stock. 

It also maintained its price target of $1.00. 

From yesterday's closing price of $0.395, this indicates an upside of more than 150%. 

BIO's operating leverage is starting to come through, and we would expect to see EBITDA improve further through FY26. Building its own IP should enhance gross margins over time. Maintaining quality in its growth performance should eventually see BIO recognised by the market resulting in a re-rate.

The post The ASX small-cap stock that could double in value in 2026 appeared first on The Motley Fool Australia.

Let's see what triggered these ratings. 

Biome Australia Ltd (ASX: BIO)

This ASX stock is technically in the consumer staples sector. However it licences, develops, and markets evidence-based, complementary medicines, including nutraceuticals vitamins and weight management products and live biotherapeutics.

Bell Potter has a "buy" recommendation and price target of $1.00 (previously $0.95). 

From this week's closing price of $0.465. This indicates a big upside of 115.05%. 

The broker said Biome Australia reported another record quarterly result, with cash receipts up c.84% yoy to c.$7.1m and positive Net Operating Cash Flow of c.+$0.9m which is tracking well toward BPe of c.$3.0m for FY26. 

The result reflected a strong rebound from 4Q25 which experienced a decline in both measures due to timing issues.

BIO's operating leverage is starting to come through and we would expect to see EBITDA improve further through FY26. If BIO maintains cost discipline, it should deliver a maiden free cash flow result this year.

The broker believes maintaining quality in its growth performance should eventually see it recognised by the market resulting in a re-rate.

AVITA Medical Inc (ASX: AVH)

It's a very different case for this ASX healthcare stock.

AVH shares are already down 67.15% year to date and Bell Potter anticipates a further slide.

The broker noted the CEO recently departed the company and soft revenue results are likely going to result in a substantial rationalisation program. 

AVH cannot continue to support the current cost base in the absence of sales growth and its ongoing ~$10m/qtr cash burn.

The broker said over the last three years the company has required ongoing re-capitalisation which is now unsustainable, resulting in further painful shareholder dilution.

The company issued a trading update on Friday, reporting September quarter revenues of approximately $17 million – down 12% compared to the prior corresponding period, 8% lower than the June quarter, and below the consensus estimate of $20 million.

Based on this guidance, Bell Potter has a sell recommendation and price target of $1.20 on these ASX healthcare shares. 

This indicates a downside of 12.4% from Friday's closing price of $1.37.

The post Broker lists one ASX healthcare stock as a buy and one a sell appeared first on The Motley Fool Australia.

That's because analysts at Bell Potter have just named them both as top picks for 2025 with major upside potential. Here's what the leading broker is saying about these names this year:

Biome Australia Ltd (ASX: BIO)

The first small cap ASX share to look at according to the broker is Biome Australia. It develops and commercialises clinically backed innovative live biotherapeutics (probiotics), marketing 17 products under the Activated Probiotics brand.

Bell Potter likes the company due to its distribution network and bold sales growth guidance. It said:

We like how BIO differentiates itself through evidence-based condition specific products that provide the intellectual platform to target pharmacy/health practitioner distribution networks. BIO has an impressive distribution network covering more than 5,000 points of distribution across Australia and is also building an international business. BIO is moving up the quality scale via becoming cash flow positive and has released three-year cumulative guidance that aims to triple sales.

The broker has a buy rating and 85 cents price target on its shares. Based on its current share price of 58 cents, this implies potential upside of 47% for investors over the next 12 months.

Santana Minerals Ltd (ASX: SMI)

Another small cap ASX share that could be a buy according to Bell Potter is Santana Minerals.

It is a gold explorer and developer with a focus on the Bendigo-Ophir Gold Project (BOGP) near Queenstown in New Zealand.

Bell Potter is very positive on the BOGP project and highlights its low costs and attractive mine life. It notes:

The project has a high grade Ore Reserve of 1.2Moz @ 2.4g/t Au and is emerging as one of the most attractive gold development projects of this scale on the ASX. Bottom quartile costs, conventional mining and processing methods and an initial 10-year mine life on Reserves alone make it attractive for both debt and equity financing. It is well placed to advance through final studies, financing and permitting, with one of the most favourable and rapid development pathways to production (and production re-rating) among its peer group.

Its analysts have a speculative buy rating and $1.07 price target on its shares. Based on its current share price of 48 cents, this implies massive potential upside of 120% for investors between now and this time next year.

The post Why these small cap ASX shares could deliver big returns in 2025 appeared first on The Motley Fool Australia.

That's because analysts at Bell Potter have just initiated coverage on its shares with a buy rating and are tipping huge returns.

Which small cap ASX stock?

The small cap that Bell Potter has named as a buy is Biome Australia Ltd (ASX: BIO).

It develops, licenses, commercialises and markets innovative, evidence-based live biotherapeutics (probiotics) and complementary medicines. The company notes that many of these are supported by clinical research.

At the last count, Biome Australia was marketing 18 products under the Activated Probiotics brand.

According to the note, Bell Potter believes the small cap ASX stock is well-placed to grow materially in the coming years. It commented:

We have strong conviction in the potential of BIO to grow into a material business through a combination of: 1) differentiation through condition-specific probiotic strains / formulations; 2) more efficient delivery system through microencapsulation and blister packaging; 3) a training and education focused sales model that builds trust, deep customer relationships and brand value; 4) clinical evidence based products that drives credibility and opens up significant potential for co-prescribing of medications; and 5) international expansion to replicate the Australian model.

Bell Potter is expecting this to underpin revenue of $12.7 million in FY 2024, $18,9 million in FY 2025, and then $26.6 million in FY 2026.

As for earnings, a net loss of $2.4 million is expected this year, then profits of $0.3 million in FY 2025 and $3.2 million in FY 2026.

Big returns

Bell Potter has initiated coverage on the small cap ASX stock with a buy rating and 73 cents price target.

Based on its current share price of 50.5 cents, this implies potential upside of approximately 45% for investors over the next 12 months.

Its analysts think that investors should snap up its shares and gain exposure to "BIO's exciting growth phase." The broker concludes:

We initiate coverage of BIO with a BUY recommendation and Target Price of $0.73 / sh. BIO provides rare exposure to the global probiotics market that leverages off the theme of preventative health. Investors can gain exposure during BIO's exciting growth phase as the business moves through breakeven into profitability and positive cash flow. Expansion into the UK and Canada should also drive material improvement in performance.

The post Guess which small cap ASX stock could rise 45% appeared first on The Motley Fool Australia.

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.

The post The Biome Australia (ASX: BIO) share price just flopped on IPO appeared first on The Motley Fool Australia.