Aussie travel tech firm Alloggio (ALO) recovers from weak IPO debut
01:39, 30 November 2021
Australia-based travel tech firm Alloggio’s stock recovered on Tuesday after falling over 17% on its stock market debut a day earlier in Sydney.
Travel stocks across the world lost on Monday on concerns over lockdowns and border closure following the emergence of the Omicron Covid-19 variant.
Australian Prime Minister Scott Morrison on Monday announced that the nation has paused its plans to reopen its borders by a fortnight due to the emergence of the new Covid-19 variant. Australia was set to allow vaccinated skilled migrants and international students entry from 1 December onwards.
Stock up over 12% on Tuesday
Alloggio had set its offer price at AUD0.20 for its initial public offering (IPO). The stock fell to a low of AUD0.15 on its debut, before paring losses to close at AUD0.17 on Monday.
On Tuesday, the stock jumped 12% to AUD0.185 by midday.
Alloggio, which stands for “accomodation” in Italian, has posted a losses for the past three years, according to its IPO prospectus.
Net loss narrowed in 2021
However, net loss after taxes for fiscal 2021 has narrowed to AUD542,100 compared with AUD940,700 a year ago.
Full-year revenue rose over 50% year-on-year to AUD11.29m in 2021, the company said.
The company raised about AUD16.5m from its IPO and said it would use the IPO proceeds to execute strategic and target growth initiatives, for technology and platform development and for general working capital.
Read more: Omicron: UK introduces measures to combat Covid-19 variant