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Why Should Anyone Interested In Investing In IPOs Now?

+3
Roboticfx
Slstock
Kithsiri
7 posters

Go down  Message [Page 1 of 1]

Kithsiri

Kithsiri
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Why should anyone be interested in investing in IPOs (Macwoods for that matter) when most of the recent IPO shares are trading well below the IPO price?
Any convincing arguments (except that stale "Long Term Investment" argument).

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics


If an IPO comes in a bull market the outlook might be different. If it comes in a bear market and we blindly invest we will be heavy loosers subscribing to any IPO.
ANyway before subcribing to an IPO, look at it valuation, and future of the company.

Roboticfx

Roboticfx
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

One reason is advertisements! Access Engineering advertised their ipo through the televisions(but they didn't present the IPO details through their major ads(Pana ganwu balaporoththu Wink ). Mackwood energy is advertising it with IPO information. I think mackwood will have a better demand than Access.

greedy

greedy
Manager - Equity Analytics
Manager - Equity Analytics

slstock wrote:
If an IPO comes in a bull market the outlook might be different. If it comes in a bear market and we blindly invest we will be heavy loosers subscribing to any IPO.
ANyway before subcribing to an IPO, look at it valuation, and future of the company.

Agreed. Good point. When we subscribe to IPOs we should be happy to hold for a while when it does not move up on listing.

manula


Vice President - Equity Analytics
Vice President - Equity Analytics

Roboticfx wrote:One reason is advertisements! Access Engineering advertised their ipo through the televisions(but they didn't present the IPO details through their major ads(Pana ganwu balaporoththu Wink ). Mackwood energy is advertising it with IPO information. I think mackwood will have a better demand than Access.

I don't think people will buy because of the advertisements.. main thing cannot understand how the people having money ..when cost of living is high... mainly to oversubscribe with in one day... millions of rupees.. may be foreign participating..surely who are investing in the CSE will not buy because they know easily they can buy from the market for a less price than IPO.... so who are the buyers ???

Kithsiri

Kithsiri
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

manula wrote:I don't think people will buy because of the advertisements.. main thing cannot understand how the people having money ..when cost of living is high... mainly to oversubscribe with in one day... millions of rupees.. may be foreign participating..surely who are investing in the CSE will not buy because they know easily they can buy from the market for a less price than IPO.... so who are the buyers ???
Good point.
Even I wonder where such money coming from when the things are so rose as many try to depict.

Rajaraam


Vice President - Equity Analytics
Vice President - Equity Analytics

When AAF IPO too we were in the same opinian.IPO Price was 2.50 if I am correct. Anyhow AAF started selling at 4.00 and once traded over 8.00 also. Even in present bearish market AAF trading 4.00/4.20 range.
However I am not saying that IPO share purchasing is good or bad. It depends on various factors. Very difficult to guess what would be the starting price is.

WildBear


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Kithsiri wrote:
manula wrote:I don't think people will buy because of the advertisements.. main thing cannot understand how the people having money ..when cost of living is high... mainly to oversubscribe with in one day... millions of rupees.. may be foreign participating..surely who are investing in the CSE will not buy because they know easily they can buy from the market for a less price than IPO.... so who are the buyers ???
Good point.
Even I wonder where such money coming from when the things are so rose as many try to depict.
Some people,institutes apply for the entire amount allocated,just to acquire strategic positions or get into the board.

manula


Vice President - Equity Analytics
Vice President - Equity Analytics

WildBear wrote:
Kithsiri wrote:
manula wrote:I don't think people will buy because of the advertisements.. main thing cannot understand how the people having money ..when cost of living is high... mainly to oversubscribe with in one day... millions of rupees.. may be foreign participating..surely who are investing in the CSE will not buy because they know easily they can buy from the market for a less price than IPO.... so who are the buyers ???
Good point.
Even I wonder where such money coming from when the things are so rose as many try to depict.
Some people,institutes apply for the entire amount allocated,just to acquire strategic positions or get into the board.

so good that mean we have millioners/billioners....what a great !!!!!

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