Shares in ikeGPS began trading on the NZX at well below their issue price following its $25 million capital raising.
The shares, issued at $1.10, began trading at $1 on Wednesday and then fell as low as 90 cents before ending their first day at 99 cents. That values the technology company at $49.6 million.
It's not the first technology stock to stage a disappointing debut: shares in Wynyard fell five cents below their $1.15 issue price on their first day of trading last year. Wynyard shares were trading at $2 on Wednesday.
ikeGPS is currently marketing two devices that allow users to capture measurements of buildings and other structures that they have photographed, targetting electricty and engineering firms as well as architects.
Managing director Glenn Milnes says his company was forecasting a tripling of revenues for the financial year ending 31 March 2015.
The company would have preferred the shares to trade up rather than down, he said. "But this is about executing a growth plan and a growth story so for us it's about going away and hitting all of our key milestones."
It was focusing on building sales in the United States and extending product capability.
The company had sold devices to the US military and utility companies.