KYOTO FAILED IPO MIGHT BE AN OPPORTUNITY

Kyoto Group, an energy storage company started trading in Oslo. The IPO was launched at 62.5 NOK, but the share price went 25% down quickly to around 48 NOK. I called the brokers enquiring what happened. The explanation was: the company did previous funding round only in December 2020. At that time people were able to buy the shares at 25 NOK. So the December buyers sold now into the IPO crashing it. It is surprising conduct by the bankers. It should have been clear to them that this could happen. It is one of the worst performing IPO this year. I would be surprised if someone would not get fired over this.I am still trying to find out, what lock ups they did for the December buyers.

The IPO is down 25% this morning, I believe it is very attractive. I bought in the IPO and I bought a bit more today.

As I wrote in my blog yesterday, Kyoto has a similar product to Azelio. They are in the same stage of development – they are both scheduled to deliver their first products this year. Kyoto has strong partners and strong backing shareholders (CEO of Quantafuel for example). Azelio was a darling of last year. The share price multiplied. Azelio now has a 15 times higher market capitalisation compare to Kyoto. I am sure there are differences, but the valuation gap seems to be quite attractive.

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