Vancouver’s Mogo fails to lift off during first day of $50m IPO

Mogo Finance Technology’s (TSX:GO) first morning on the stock market was met with an underwhelming response from investors after its share price dipped 5% Thursday. 

Mogo Finance Technology’s (TSX:GO) first morning on the stock market was met with an underwhelming response from investors after its share price dipped 5% Thursday.

The Vancouver-based company, which specializes in loaning money to young people through electronic transfers, raised $50 million from its June 25 initial public offering (IPO).

Mogo filed documents in early June stating it would raise $50 million by selling between 3.9 million and 4.6 million shares at prices between $11 and $13. Instead, it revised that plan and sold 5 million shares at $10 to raise $50 million through the IPO.

However, its opening share price of $10 fell 5% to $9.41 by 9:30 a.m. PT

Revenue for the company grew from $15.3 million in 2012 to $23.4 million in 2014.

But its losses have also jumped over a similar time frame, rising from $3.3 million to $13 million between 2012 and 2014.

And most recently, Mogo posted a net loss of $4.2 million during the first three months of 2015.

torton@biv.com

@reporton