ASX newcomer Atomo Diagnostics breaks IPO drought; surges 125pc on debut
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The ASX’s six-week IPO drought has well and truly broken with a storm. Rapid HIV and COVID-19 test kit maker Atomo Diagnostics (ASX:AT1) has begun listed life rocketing to 45c — a 125 per cent gain on its IPO price.
Atomo says it has been overwhelmed with demand for its COVID-19 test kits.
The company was founded in 2010 and has historically specialised in HIV tests which can diagnose in a similar way and as fast as a pregnancy test.
Specifically, a liquid sample such as blood is applied to the test strip and if the target substance is present two lines will appear.
But in recent weeks it has made a pivot, setting aside 300,000 units in inventory to be made available for the global pandemic.
While some already listed companies have had a slightly less troublesome time raising capital, it has been even tougher for companies wanting to raise cash to enter the ASX.
But CEO John Kelly told Stockhead earlier this week that while the pandemic resulted in some shifting of its register, the deal was still done.
“We’d been marketing the offer for a while, we had a good level of support before the market dropped,” he said.
“We saw a restructuring of the register, some went off but others came in because of our ability to help with COVID-19. We raised a good amount of money, sufficient enough to get the deal done.”