FDGE Stock: Is TSX Debutant Farmers Edge Worth Your Investment?

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Summary

  • Farmers Edge (TSX:FDGE) saw its stocks jump nearly 18 per cent during its Toronto Stock Exchange (TSX) debut on Wednesday.
  • The newbie stock rose from its initial public offering (IPO) price of C$ 17 to hit a high of C$ 20.5 during the day.
  • Farmers Edge, co-founded by present CEO Wade Barnes, steps into the public market after about 16 years in business.

Digital agriculture startup Farmers Edge (TSX:FDGE) saw its stocks jump nearly 18 per cent during its Toronto Stock Exchange (TSX) debut on Wednesday, March 3.

The newbie stock rose from its initial public offering (IPO) price of C$ 17 to hit a high of C$ 20.5 during the day. After accumulating a trading volume of over 1.3 million, the stock finally closed the session at C$ 19.98 to bring the company’s market cap* at C$ 813 million on Wednesday.

As one of the newest members of the TSX family, let’s take quick scan of Farmers Edge’s profile.

©Kalkine Group 2020

Farmers Edge Inc (TSX:FDGE)


Farmers Edge, co-founded by present CEO Wade Barnes, steps into the public market after about 16 years in business. Based in Manitoba’s Pilot Mound, it provides farmers and plant growers advanced technology-based solutions, such as using artificial intelligence (AI), to boost their crop yields.

The agricultural tech firm filed its preliminary prospectus early on in February. It had expected an IPO size of C$ 100 million, which could rise to C$ 115 million in case of an over-allotment implementation, and an IPO price of C$10 to C$ 17 per share.

©Kalkine Group 2021

While announcing the closure of its IPO on Wednesday, however, Farmers Edge said that it sold 7.35 million shares at a price of C$ 17 apiece, raising total gross proceeds of over C$ 125 million. The Manitoba-based firm has also issued a revised over-allotment option, valid for 30 days, which could raise the financing up to C$ 18.76 million if completely exercised.

*as per TMX

The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.

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