The stock shot up by 310% to 20.50p at 8.15am from its placing price of 5p, which had put a value on the company of £25 million.
The tidal wave of interest from institutional and retail investors lifted the market capitalization of the London pioneer – which counts David Beckham as an early backer – above £100 million.
Beckham’s investment vehicle DB Ventures retained a 5% stake: the value of the holding rose more than £2.5 million to £3.9m at the peak.
CEO Alexis Abraham said: “We are delighted with the tremendous support we have received from institutional capital and the unprecedented level of interest shown by retail investors for an IPO of this size.”
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown said: “With shares 13 times over-subscribed, initial demand for cannabinoid company Cellular Goods was always likely to be high and as trading has got underway it’s become a hot stock.
“David Beckham’s backing certainly added a celebrity glow to its listed debut. It might seem a bit of a curve ball for a man known for free kicks rather than scoring on the financial markets, but his personal brand has given the launch a bit of a kick.’’
The firm is the latest in a string of companies in the cannabis space to go public following a ruling by regulator the Financial Conduct Authority to allow such businesses to list on the main exchange.
But it has one major difference: the legal cannabis component on which its ranges of sports pain relief and skincare products will be made is entirely synthetic, manufactured in laboratories.
Abraham said the decision, which will prove pivotal to the company’s operations and fortunes, came about by “happy accident” as the firm prepared to predict and navigate the legal and regulatory hurdles associated with bringing a novel product – and one based on a classified drug – onto the market.
Published: February 26, 2021