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Aussie travel tech firm Alloggio (ALO) recovers from weak IPO debut

By Mensholong Lepcha

01:39, 30 November 2021

A travelling backpacker
A travelling backpacker – Photo: Shutterstock

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.

Oil - Crude

71.82 Price
-0.770% 1D Chg, %
Long position overnight fee -0.0227%
Short position overnight fee 0.0007%
Overnight fee time 22:00 (UTC)
Spread 0.030


15,925.50 Price
+0.260% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 22:00 (UTC)
Spread 1.8


2,022.02 Price
+0.070% 1D Chg, %
Long position overnight fee -0.0197%
Short position overnight fee 0.0115%
Overnight fee time 22:00 (UTC)
Spread 0.30


43,778.40 Price
-0.910% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

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

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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