Skepticism increasing around IPOs

As the IPO market continues to soften, James Abela, Portfolio Manager for our Future Leaders Fund, looks at how small cap managers are redefining their approach for a market that often looks “too good to be true”.

Key points

• Declining performance causing a very soft IPO market
• Small cap managers have become increasing cautious in their approach to IPOs
• Look out for companies where the story looks “too good to be true”
• History, stability and certainty: the 3 characteristics for IPOs to regain interest from the market

For further insights from Fidelity, please visit our website