👉 Background: Since launching in 2006, GyG has expanded to over 210 restaurants across Australia, Singapore, Japan and the US - their tacos travel! Earlier this month, GyG first planned to raise $242 million as part of their listing on the ASX.

👉 What happened: With so much demand, they ended up raising $335 million as part of their listing yesterday. And its shares opened spicier than its jalapenos - with shares opening at $30 on the ASX — more than 35% above is listing price.

👉 What else: GyG still has a very tight share register because, the top 20 shareholders of GyG own more than 85% of their shares…meaning there isn't a lot of liquidity to get a fair market price.

What's the key learning?

💡Liquidity in the share market refers to how easily and quickly the shares of a company can be bought or sold... without significantly affecting the share price.

💡When there is a lot of liquidity, it means lots of shares are being traded. This usually results in more stable prices. According to CommSec, at the time of listing yesterday, there were 1524 buyers listed for the stock bidding versus 49 sellers. And with fewer shares on the market, each buy or sell order can have a bigger impact on the stock price.

💡Some investors believe the true test of GyG’s share price will be when its major investors are allowed to sell their shares in 12 months when 62% of its shares come out of escrow.