IPO watch: Openn Negotiation surges over 60% on ASX debut, Gefen slips 18%

Summary

  • Openn Negotiation, Gefen International and BCAL Diagnostics made their debut on the ASX today.
  • Australian property technology firm Openn Negotiation gained as much as 62.5% on IPO listing.
  • Tech firm Gefen International tumbled 18%, while BCAL Diagnostics dropped as much as 6% on debut.

Australian shares were in upbeat mood on Wednesday, with benchmark index S&P/ASX200 rallying as much as 1.4% on firm global cues. The equity market witnessed a surge in buying, reversing losses suffered over the past two days on fears of a COVID-19 resurgence. On the sectoral front, all the eleven indices were trading in the green, with energy and real estate stocks gaining the most.

                 

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Meanwhile, three companies - Openn Negotiation, Gefen International and BCAL Diagnostics – commenced trading on the Australian Securities Exchange (ASX) for the first time. While Openn Negotiation surged on its initial public offering (IPO) debut, Gefen International and BCAL Diagnostics started on a weak note.

Openn Negotiation zooms over 60% on debut

In line with the benchmark index, Australian property technology firm Openn Negotiation (ASX: OPN) made a strong debut on the ASX. The stock gained as much as 62.5% to 32.5 Australian cents in opening trade, against an offer price of 20 cents. There was surge in volume as 4.42 million shares worth AU$1.32 million changed hands over the counter by lunch, while market capitalisation increased to AU$10.84 million.

The company, which operates a property technology business through its subsidiary, has successfully raised AU$9 million by issuing 45 million shares at an offer price of 20 cents apiece.

Founded in Perth in 2016 by a group of experienced property professionals, the company helps agents across Australia and New Zealand to facilitate transparent property transactions. It provides a real-time, online bidding process to achieve a property's market value through competitive price tension.

Gefen International falls 18% on ASX listing

Bucking the trend, Israel-headquartered technology firm Gefen International (ASX: GFN) made a weak debut on the ASX, in an otherwise strong broader market. The stock price slumped as much as 18% to 82 cents against an offer price of AU$1. During the day’s trade so far, over 1 million shares worth AU$900K changed hands over the counters.

The tech firm’s shares got listed on the ASX following the completion of an oversubscribed AU$25 million IPO.  The issue received strong response from institutional and retail investors as well as its existing shareholders including Regal Funds Management, Ellerston Capital and Perennial.

The company intends to use IPO proceeds to execute a number of strategic growth initiatives including expanding its sales and marketing teams as well as funding research and development of its unique platform.

BCAL Diagnostics dips 6%

Breast cancer detection company BCAL Diagnostics (ASX: BDX) also commenced trading on a muted note. The stock fell as much as 6% in early deals to hit a low of 23.5 cents against an issue price of 25 cents.

The diagnostic company made its debut on the ASX after successfully raising AU$10 million by issuing 40 million new shares at 25 cents per share. The offer valued the company at AU$51.7 million.

The company is in process of developing a non-invasive laboratory blood test for detection of breast cancer. The fund raised through the IPO will be used to conduct important clinical studies, intellectual property management, algorithm development and deliver documentation for regulatory submissions in key jurisdictions.

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