Not all IPOs are created equal. If you’re going to put your hard earned cash into the public float of a company, what are the markers of a good investment?
Continued surge in small-cap listings powers IPOs to an impressive 61.6% average return in 2017. Smaller IPOs on average up 69.8% outperforming large IPOs.
Well, back to the office and a new year beckons… oh, that sounds so much more chipper than I feel today. I’m going to wrap up this summer series in the next couple of days, but before I do, there’s a few more bits of analysis that I hope you’ll find interesting.
Let’s say you haven’t been one of the people investing in IPOs yet? You’re probably waiting for the right one, right? We hear that from time to time.
It’s the old classic investment banking trick … when describing returns, choose a time period that makes you look good.
Its been 4 years since we launched ASX Bookbuild and 2 years since the Prime Minister placed the first bid into an OnMarket IPO (it was my money, placed on my behalf). That was the initial public offering (IPO) of the Bitcoin Group…more on that in a few days, but for now, here’s what we’ve done (thanks to all the people that have bid into deals :-).
Companies that have undertaken an Initial Public Offering (IPO) this year have returned an average 25.9% for the nine months to September 30, an impressive 25.6% outperformance of the benchmark S&P/ASX 200 index which has returned 0.3% over the same period, according to the OnMarket 2017 Third Quarter IPO Report.