Trading in shares in the Wynyard Group, a security software company, has been disappointing since they listed on the stock exchange last Friday.
The initial trade was at the $1.15 issue price, but since then, it has traded below that level, sinking as low as $1.08, until finally climbing back on Friday to close at $1.16.
But oMilford Asset Management, one of the fund managers which bought shares in the float, has been buying shares on market as well and now owns 12.7% of the company.
Milford investment committee chairman Brian Gaynor said he expected it to trade around the level is started at.
He said it's a complex company and people find it difficult to understand what it does, but that over time people will understand that it has good potential.
Mr Gaynor said it's a long term investment and the company still has to prove its potential, although he's reasonably confident that it will.
He said Xero and Diligent also traded below their issue price when they started, even though they are performing well now.
"I mean what happens in the first two days, or first week or first month of a company being listed is not always an absolute indicator of how they perform over a year or two years."
Mr Gaynor said what happens to a company in a year or two is the most important thing.