Shares in Cellular Goods (CBX), the first provider of consumer products based on biosynthetic cannabinoids to list on the main London market, sprinted higher in early dealings following its heavily over-subscribed initial public offer.
In the first hour of trading, shares touched 28p against a placing price of 5p, representing a gain of 460% for those lucky enough to have secured shares in the IPO.
A total of 260 million shares were placed, equal to 51.5% of the company’s capital, valuing the firm at a little over £25 million at issue. At the current price of 26.5p, the business is valued at over £130 million.
Celebrity backer David Beckham, who owns a 5% stake through a private investment vehicle, is believed to have retained his shares.
While there has been a great deal of excitement around the flotation of cannabinoid stocks, Cellular Goods is unique in that the cannabis element used in its products is entirely synthetic and made in a laboratory rather than from the cultivation and processing of plants.
The firm, which was only set up in 2018 and employs just eight people, is due to start selling its premium skincare and topical athletic recovery products later this year through ‘partnerships with leading online and physical retailers’ as well as direct to consumers via its own website.