Investors in ChaosMusic took a cautious approach to the online music store's ASX listing today with the stock opening at $1.50, up from its final issue price of $1.40.
ChaosMusic CEO and founder Rob Appel said he was "ecstatic" to finally bring the company to market after its formation in 1995.
Appel was "extremely pleased" with the response the company received from its customers who were given a chance to buy shares in a priority offer.
Jason Barakat-Brown manager with Ord Minnett, the underwriters of the float, said he was very pleased with the listing which was within the company's expectations.
Barakat-Brown said the high number of Chaos shares being traded, more than 1.2 million in the first 30 minutes, highlighted the high level of interest in the stock.
The listing raised approximately $15 million, the lion's share of which will go toward the company's marketing budget. The float will also fund the acquisition of Melbourne-based offline music store, Gaslight.
Meanwhile, the company also announced a three-year deal with United States amplified.com which will add 150,000 song titles to the Chaos download catalogue, and open up more international avenues for local artists.
In the lead-up to Christmas, Chaos also plans to deliver CDs via couriers and roller-bladers across the CBD.
At 1pm this afternoon, Chaos was trading at $1.40. Yesterday's hot share property, Melbourne IT, dropped from its $7.95 close last night to $7.40 at 1pm today. Melbourne IT was trading as high as $9.10 after its debut yesterday.