The window for IPOs is open again and there are a number of high profile businesses seeking to make a splash on the ASX. Examples such as Baby Bunting, McGrath Real Estate and Link Group are some of the bigger businesses soon to hit the market. So how should investors approach these opportunities? We ask Steve Johnson from Forager Funds and Ben McGarry from Totus Capital to share their views on some of these companies, what they are looking for in a new business and some of the traps investors should be wary of. Click here or on the image below to watch the video:
Very interested in the Link IPO as I worked for Link for 6 years and have an intimate understanding of how it operates. I think they can exert incredible pricing power with their near-monopoly on the industry fund administration, and the share registry customers are very sticky, despite the competition from Computershare. Their size and assets are almost impossible to reproduce (as SuperPartners would attest to), and as mentioned in the video, their income is going to be very stable and predictable. As always with PEP though, the price will likely be too high.