Free samples company PINCHme has a tough start to life on the ASX
PinchMe is launching an $8m IPO ahead of an ASX listing. Pic: Foodie Beauty
The ASX’s newest small cap tech stock PINCHme has suffered a tough start to public life amid a global stockmarket sell-off.
PINCHme (ASX:PIN) is a website that sends out free samples in exchange for reviews and personal data.
It raised $8 million selling shares at 50c each in an initial public offering to help drive membership growth.
The stock made its debut yesterday amid strong headwinds.
PIN shares opened Wednesday at 44c but closed at 39c. Today they dropped again in early Thursday trade to 38c — an overall fall of about 16 per cent.
It hasn’t helped that global markets are plummeting and the ASX has today been hit by a wave of selling after a Wall Street sell-off. The S&P500 fell 3.1%, the Dow Jones 2.4% and the tech-heavy Nasdaq 4.4% overnight.
New York-based PINCHme was founded in Australia in 2012 by former hedge fund manager Jeremy Reid.
The service “intelligently matches” consumer brands with PINCHme members who have provided “comprehensive personal data about themselves and spending habits”.
Members (who have to live in the US) receive free samples which they are then asked to rate. The brands receive “detailed insights, product reviews, feedback and social media engagement to drive sales uplift”.
PINCHme says it is also able to “further monetise its member audience through performance-based online advertising” including third party ads and surveys.
It raised $8 million selling 16 million shares at 50c each. About 117 million shares were on issue after listing.