IPO watch: Marley Spoon serves dinner luke-warm but Pivotal’s chips are piping hot
Dinner delivery service Marley Spoon slipped in its ASX debut on Monday but computer chip maker Pivotal Systems went flying.
Marley Spoon (ASX:MMM) raised $70 million selling shares at $1.42 each — but the stock unfortunately didn’t look like matching its issue price today.
The stock opened at $1.25 and hit a low of $1.14 before closing down 16 per cent at $1.195. About $2.2 million of shares changed hands.
“It is still day one in our mission to bring delightful, market-fresh and easy cooking back to the people, as we provide alternatives to supermarket for weeknight cooking,” Marley Spoon head chef Fabian Siegel told Stockhead in a statement.
It was a different story for US-based Pivotal Systems (ASX:PVS) which uses machine learning software to design cheaper, faster computer chip manufacturing processes for the likes of Samsung and Texas Instruments.
Pivotal raised $53.5 million selling shares at $1.86.
The stock spiked to $2.40 at open, went on to hit $2.70 and finished the day at $2.59 — up 39 per cent. Punters spent $4.6 million trading the shares.
Meanwhile drone crash landing preventer Parazero (ASX:PRZ) was also drifting lower after listing last week (see below).
Here’s a quick recap:
The company: The meal kit delivery business that says it’s sold more than 14.5 million meals since starting in Germany in 2014.
In CY2017, the business generated €53.2 million ($A84.3 million) in global revenue, producing a gross profit of €18.7 million. After fulfilment, marketing and admin expenses, Marley Spoon finished the year €28 in the red.
The offer: Marley Spoon raised $70 million by issuing about 115 million shares (technically CHESS depository interests or CDIs which are used as a proxy for trading foreign shares on the ASX.)
Day one: The CDIs were issued at $1.42 per CDI. They opened at $1.25 at 12pm AEST and went to an intraday high of $1.27 before finishing Monday at $1.19 — 16 per cent lower than the issue price.
The company: Pivotal uses machine learning to provide an innovative approach to gas flow monitoring for the semi conductor industry.
The offer: Pivotal Systems raised $53.5 million in an IPO through the issue of 25 million fully paid CDIs at an issue price of $1.86.
Day one: The company kicked off the day at $2.40 and and went to an intraday high of $2.70 before finishing at $2.59 on Monday, up 39 per cent on the CDI offer price.
The company: The drone parachute business creates safety devices for rogue drones and raised $5 million in an initial public offer through the sale of 25 million shares at 20c each.
The listing was delayed a week after the ASX requested more details from management about “developments relating to the sales and promotion of the company’s products”.
The first days: Shares dropped to 18c on Parazero’s first day on the ASX, down ten percent on the offer price. Two weeks on, they’re at 17c, a 15 per cent decrease.