An initial public offering (IPO) is the first sale of stock by a company to the public and listing to the stock exchange.
Everytime there's an announcement of IPO, the retail (public) investors will be rushing for the application and place most of their money in the IPO. Most often the public perceived that all IPOs are good investment with many upsides since it is the first day of listing. But this is not always the true case! Whether the IPO is priced at 10sen, RM1, or RM10 doesn't determine whether the valuation is cheap or expensive. IPO can be good or bad depending on the company position, valuation, financial, industry, intention of listing, and structure of the IPO.
Below are the inforgraphic on the key points that investors should analyze and understand before investing in an IPO, which can be obtain from the Prospectus. Always ask your broker for the IPO Prospectus (it's free) or retrieved it online from Bursa Malaysia. Yes it is a very thick book but it is definitely very useful information to evaluate an IPO.
Everytime there's an announcement of IPO, the retail (public) investors will be rushing for the application and place most of their money in the IPO. Most often the public perceived that all IPOs are good investment with many upsides since it is the first day of listing. But this is not always the true case! Whether the IPO is priced at 10sen, RM1, or RM10 doesn't determine whether the valuation is cheap or expensive. IPO can be good or bad depending on the company position, valuation, financial, industry, intention of listing, and structure of the IPO.
Below are the inforgraphic on the key points that investors should analyze and understand before investing in an IPO, which can be obtain from the Prospectus. Always ask your broker for the IPO Prospectus (it's free) or retrieved it online from Bursa Malaysia. Yes it is a very thick book but it is definitely very useful information to evaluate an IPO.
*Click on the image to enlarge.
Stay tune, I will be explaining and blogging on the key points and how to make good use of the IPO prospectus soon.
Be a sound investor, be a diligent investor.
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