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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