Identifying a good IPO

Clime Asset Management

Most of the time investors trade stocks on the secondary market but from time to time we get access to new floats through our brokers or general public offers. Initial public offers (IPOs) can be a good way to ‘get in’ on a great opportunity, therefore knowing what to look for in a float is an important investing skill to have. Investors who find the right opportunities in IPO’s can be very rewarding. But it can be hard to tell which offers are going to succeed and grow, or miss the mark and fail. One interesting case is that of grooming retailer, Shaver Shop. Shaver Shop hopes to raise about $98 million at its upcoming offer of 93.4 million new and existing shares priced at $1.05 each. The retail offer of shares opens on June 22 and closes on June 27 and will list on the ASX on July 1. Today, we go through how we as fund managers evaluate IPOs - using Shaver Shop as our case study. (VIEW LINK)


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