By mid-morning Taste shares were trading at 84c, which is about 7% down on the pre-listing private placement share issue price of 90c.
The share kicked off well, trading up to 95c in two small deals as the market opened. But as mid-morning volumes picked up the share started drifting downwards.
By mid-morning about 80 000 shares had changed hands. Bids were pitched at 81c and offers at 84c.
Taste, which owns the Scooters and Maxi's fast food franchises, raised R22.5m from investors ahead of its listing.
According to the group's prospectus, the capital raised would provide the group with sufficient funding to accelerate the growth of existing brands through the acquisition and conversion of independent outlets and smaller chains.
The prospects also said the group has also identified potential acquisition opportunities that can be funded through equity "thereby maintaining the group's interest bearing debt at acceptable levels".
Taste wants to become one of the largest food franchisors in Africa by 2010 with over 600 outlets.
In the financial year ahead Taste are forecasting turnover of R28m, gross profits of R11.3m and earnings of 6.3c/share.