Chrysos looks for IPO gold, finds lead; float market needs fix

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Listing companies and their underwriters will have to re-think IPO strategies following gold testing company Chrysos Corporation’s disastrous debut.

Everyone involved - the company, its brokers, the ASX and, most of all, investors - lost some serious skin as ChrysosChrysos Corporation CEO Dirk Treasure with one of the big gold sample testing machines.The post-mortem that played out over the weekend and identified three factors the horror performance: market conditions, unrestrained pre-IPO investors and the float’s timing.

The writing was on the wall early on Friday morning, well ahead of Chrysos’ 11.30am debut. The Nasdaq, the US index for growthy stocks, was down 5 per cent on Thursday night and 10 per cent in the three weeks since Chrysos’ broker Barrenjoey took institutional bids and priced its IPO.The early joke was that Chrysos should abandon its ASX code C79, named after the atomic number for gold, and go three counts higher to C82.

 

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