Alert: My Food Bag (MFB:NZX, MFB.ASX)
IPO Investor Losses Now Exceed $NZ 305m ...
Note:
All amounts in New Zealand dollars (NZD) unless otherwise stated.
Overview
NZX- and ASX-listed food delivery service My Food Bag (MFB) has plumbed new lows today closing at 59 cents. It also closed at the day’s low indicating perhaps more softening on Monday.
Previous coverage of the stock includes the Interims 30.9.21, an Alert 10.3.22, an Alert 10.4.22, the Annuals 31.3.22, and an Alert 15.8.22.
The day’s high was 62 cents and the stock closed at a bid and offer of 58 and 59 cents. There was no trading in the stock in Australia today and the stock closed at a bid and offer of AU$ 0.41 and AU$ 0.595 cents.
The stock was listed in 2021 at an IPO price of $1.85. At the current price of $0.59 the stock is down 68.1% from its IPO price.
The total loss of market capitalisation based on 242,437,524 outstanding shares is $305.5m.
It now has a market capitalisation of just $143.0m compared to $448.5m based on the issue price.
There are some real lessons for investors in the collapse of this stock which is a subject to be covered in another article.
The media in New Zealand has given the founders/pre-IPO owners and promoters of this company a pass. There have been no serious publicly-available investigative reports on MFB either before or after its IPO.
One can only speculate on the reasons for this lack of media oversight. A very serious amount of money has been lost by many and gained by others through the IPO process.
Many New Zealand IPOs are poor performers which can be relied upon to lose money for the IPO new investors.
There are recent exceptions including industrial companies Vulcan Steel (VSL.NZX, VSL.ASX), Ventia Services Group (VNT.NZX, VNT.ASX) and DGL Group (DGL.ASX). The latter abandoned its New Zealand listing at the end of June last in the wake of some politically incorrect and what many consider unsavoury comments by its CEO which were, coincidentally, about MFB.
So the highly successful company which made stacks of money for its IPO investors leaves the NZX while the disaster MFB stays listed.
That’s called irony.
Poor performing NZX-listed IPOs which listed in 2021 were covered in this article (may be paywalled) published by nzherald.co.nz today.
Recent IPOs which have lost market capitalisation based on their IPO listing prices include not only MFB, but Winton Land, New Zealand Automotive Investments, Third Age Health, Greenfern, and TradeWindow.
It would take a brave (or very well informed) individual to buy stock in a New Zealand IPO at its issue price.
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