The Biome Australia (ASX: BIO) share price just flopped on IPO
Today was a pretty decent day for most ASX investors. The S&P/ASX 200 Index (ASX: XJO) ended up finishing this Tuesday’s trading at 7,256 points, up 0.22% for the day. But this positive energy didn’t flow through to one ASX company that made its debut on the ASX boards today. That would be the Biome Australia(ASX: BIO) share price.
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.
BIO Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held
