Hi,
I have been debating this question in my mind for a while. During my classes, I have learnt that during "eurpohic" times, many firms (especially start ups) are normally pushed by their backers, PE venture capitalist firms, to be IPOed so that these PE venture firms can cash out at high valuations. In addition, it is common for firms to IPO during good times so as to achieve higher valuation.
Lastly, I have seen many stock prices fall below that of their IPO prices with the exception of a few good companies like the mapletree coys who are trading above their IPO price. So hence my question is this : What are the kind of stocks should we buy during IPO balloting and what are the kind of stocks we should buy only after a period of its IPO?
This is so that retail investors will achieve a reasonable value for a share of the company we are buying into.
I would like to hear your views. Thanks
I have been debating this question in my mind for a while. During my classes, I have learnt that during "eurpohic" times, many firms (especially start ups) are normally pushed by their backers, PE venture capitalist firms, to be IPOed so that these PE venture firms can cash out at high valuations. In addition, it is common for firms to IPO during good times so as to achieve higher valuation.
Lastly, I have seen many stock prices fall below that of their IPO prices with the exception of a few good companies like the mapletree coys who are trading above their IPO price. So hence my question is this : What are the kind of stocks should we buy during IPO balloting and what are the kind of stocks we should buy only after a period of its IPO?
This is so that retail investors will achieve a reasonable value for a share of the company we are buying into.
I would like to hear your views. Thanks