Cellular Goods (CBX.L) offered shares at 5p in its IPO and the price of its stock climb as high as 28.5p on its first day of trading on Friday. The stock was still changing hands at 23.90p by 10am in London. The surge valued the pre-revenue business at over £100m ($139m).
Cellular Goods is a wellness company that makes skincare and mood enhancing products from cannabinoids, natural compounds produced by the cannabis plant. The products will not contain THC, the psychoactive compound found in cannabis that makes people high. The best known cannabinoid is CBD which consumer goods companies have put the compound in everything from drinks to eye creams.
Former star footballer David Beckham is one of the biggest outside backers of Cellular Goods. Beckham owns a 5% stake in the company through his holding company DB Ventures.
“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,” said Susannah Streeter, a market analyst at Hargreaves Lansdown. “David Beckham’s backing certainly added a celebrity glow to its listed debut.”
Streeter said the CBD skincare market was forecast to grow to $3.5bn over the next five years but said it was already “a highly competitive field.”