The NZX's regulatory oversight company has received multiple complaints about the drop in the share price of Harmoney but won't be undertaking an official price inquiry.
The Kiwi online lender dual listed on the ASX and NZX on November 19 following an Initial Public Offer (IPO) price of A$3.50 ($3.68).
Between then and Tuesday's market close it fell to A$2.51 on the ASX and $2.62 on the NZX but has rallied in recent days to $3.15 on the NZX and A$2.85 on the ASX.
The Herald understand one New Zealand investor sent a legal letter requesting both the NZX regulator and the Australian Securities and Investments Commission look into the price falls, which have come despite no negative announcements from Harmoney and amid a rising sharemarket.
Queries to the NZX have revealed the investor is not the only shareholder unhappy about the share price drop.
A NZX spokesman confirmed NZ RegCo had received five complaints and enquiries from investors regarding the decline in Harmoney's share price since listing in November.
"The trading in Harmoney has been subject to ongoing oversight since its listing, as part of NZ RegCo's standard surveillance monitoring activity.
"NZ RegCo has also engaged with Harmoney regarding its share price movement."
The spokesman said NZ RegCo price enquiries were used in circumstances where material trading in securities can not be explained to NZ RegCo's satisfaction.
"In respect of Harmoney's share price, NZ RegCo Surveillance notes the recent adverse market sentiment in the relevant retail credit sector, the pricing level determined through the IPO process, and the pricing impacts of certain institutional investor selling in Australia in the period after listing."
The ASX, which is Harmoney's home listing market, has primary jurisdiction over Harmoney's continuous disclosure obligations.
The NZX spokesman said NZ RegCo had engaged with the ASX on the share price movements observed in Harmoney.
"It is noted that the ASX has also not initiated a price inquiry."
Harmoney's joint lead managers for the IPO were New Zealand investment bank Jarden and Australian firm Ord Minnett.
This week Jarden investment analysts released their first research report with a buy rating on the company and a 12-month target price of A$3.30 - A20c below its listing price.
A spokeswoman for Jarden emphasised its research was fully independent of its investment banking arm. The firm offered no comment when asked whether the IPO was over-priced, considering the now lower valuation from its retail analyst.
The Jarden analyst note said the share price underperformance against its peers and the ASX small ordinaries index likely reflected Harmoney's more modest near term growth outlook compared to peers.
"This largely reflects Harmoney's decision, in contrast to some of its peers, to limit originations in response to macro uncertainty."
But they said loan originations had since bottomed and Harmoney had seen growth of 12 per cent over the first half of November - a rate which they expected would accelerate with the activation of a second New Zealand funding warehouse.
"We forecast [around] 20 per cent year on year volume growth over November - June, with Australia up [around] 40 per cent."
Ord Minnett analysts also initiated research with a buy on the stock and a target price of A$3.90.
It's understood some large institutional investors who bought into the IPO sold large parcels down on the first day dragging the share price down and retail investors appear to have followed them out the door.
Deal fatigue by Australian investors who have seen a raft of IPOs come to market in the last few months may also be affecting the share price alongside the Covid environment making new investors feel nervous about debt servicing.
Rival Australian non-bank lender Plenti Group has also seen its share price fall from its A$1.66 offer price in September to trade around A$1.10.