In 2013, with the hype around some high profile IPOs (Initial Public Offerings), I thought it was time to do some research to either confirm, or shatter, my views that IPOs in general are too dangerous for the average investor. So, I did some research and put up a new web page in the public area of my Share Market Toolbox on this very topic.
The bottom line conclusion from my research was that in general, the chances of the average retail investor making money on an IPO are not that good. The reasons for this are explained on my IPO web page.
I have since updated that web page from time to time, and also reflected on the content. Anyhow, I have now applied some small updates as follows:
- Updated the entry for Hot Copper to include a price chart for the latest 6 months since their IPO (and which shows that any investor hanging on since the float date last September is now under water).
- Added in Bapcor (BAP formerly Burson Group), to show that some of the more well known floats can be profitable. Their share price has more than doubled since the float three years ago (April 2014). But note the lengthy share price consolidation periods that are obvious on the price chart.
- At the bottom of the IPO page, the entry for Telstra (and the T1, T2, T3 floats) included links to their original prospectus documents that had since been moved. I have now updated these links so you can see the original documents and promises.