Shares in a newly floated skydiving company are tanking after two people died in a parachute accident

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Shares in Sky the Beach, which floated on Friday, are tanking after two skydivers died when their parachutes became tangled.

The share closed on Friday at 39 cents, a 56% rise on the 25 cent IPO price.

However, on the same day two skydivers died while on a jump over farmland at Tyagarah on the New South Wales north coast.

The company said the tragic accident was unlikely to have a material adverse financial effect.

Sky the Beach is in the process of acquiring Australia Skydive, the company which the skydivers had used.

The company’s shares are trading down 14% to $0.335.

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