I like IPOs. Typically, there’s no brokerage cost. And you can get in on a potentially exciting opportunity.
But they are also difficult to price and value. It’s a Goldilocks equation. Priced too low, they can become oversubscribed lolly scrambles. Inviting speculators and ‘stagging’ — whereby investors look to make a quick buck on the public float.
Priced too high, they can fall flat after opening on the market. As mentioned last week, Lyft [NASDAQ:LYFT] is a disappointing example. Similarly, Uber [NYSE:UBER] took years to return to its IPO price.
Well, this week, we have a story of two IPOs. One is Airbnb, highly anticipated globally — we’ll show you how you could access this IPO. The other is New Zealand Rural Land Company, a welcome new listing on the starved NZX. Perhaps.
Should you buy into these IPOs?
Well, not so fast. Here’s our deep-dive analysis into the critical factors you urgently need to know about before you invest in these companies…
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Simon is the Chief Executive Officer and Publisher at Wealth Morning. He has been investing in the markets since he was 17. He recently spent a couple of years working in the hedge-fund industry in Europe. Before this, he owned an award-winning professional-services business and online-learning company in Auckland for 20 years. He has completed the Certificate in Discretionary Investment Management from the Personal Finance Society (UK), has written a bestselling book, and manages global share portfolios.