Some ASX initial public offerings (IPOs) go well. We've seen more than a few explosive ASX debuts on the ASX boards in just 2021 alone. Airtasker Ltd (ASX: ART) anyone? Or Camplify Holdings Limited (ASX: CHL)? Although an ASX exchange-traded fund (ETF) doesn't exactly go through an IPO process when it lists, we still saw an incredible response to the BetaShares Crypto Innovators ETF (ASX: CRYP) when it listed on the ASX last month.
As such, a new ASX IPO is often an exciting time for investors, even the ones who aren't trying to make a quick buck on a potential 'pop'.
But then again, some ASX IPOs don't go well. And that's unfortunately what we're discussing today.
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Tissue Repair share price flops after ASX IPO
Yesterday, we saw the ASX debut of Tissue Repair Ltd (ASX: TRP). And it sadly falls into this second camp, at least as of its second day of life on the ASX.
So Tissue Repair is a biotech company. It specialises in wound healing and drug development technology. It currently has its Glucoprime active ingredient under clinical Phase III trials over in the United States. According to Tissue Repair, this active ingredient "behaves like a decoy cell and simulates a yeast infection, resulting in the stimulation of the body's own wound repair pathways".
So Tissue Repair had raised $22 million for its IPO yesterday at a share price of $1.15, with 19.1 million shares on issue. Well, the market evidently had other ideas on what those shares should be valued at.
Tissue Repair shares were trading at just 75 cents each after their first few minutes of trading yesterday and ended up closing at 69 cents. That's a good 40% from where the shares were initially priced at for IPO. As it stands today, the company has finished up trading at 64.5 cents a share, down another 7.19% today.
That gives Tissue Repair a market capitalisation of $42.02 million, a long way from the $69.5 million "indicative market capitalisation" that the company outlined in its pre-IPO filing with the ASX yesterday.
When it comes to IPOs, investors seem to win some and lose some. The Tissue Repair IPO has not, at least up to this point, given investors a winning bet.
