When it comes to pricing shares for an initial public offering, the author of today’s article notes that they need to be priced “high enough that initial investors can get out at a reasonable profit. And so that the company can raise capital from the stock sales to fund its needs for a while. But they also need to be priced low enough to move higher, to create market confidence. If they fall, it’s considered a ‘failed IPO’.” By this measure, then, it would appear that the recent Lyft IPO was a failed IPO – and that could mean that now is a good time to buy. For more, CLICK HERE.
IPOs
Know Your IPOs
The author of today’s article describes initial public offering activity so far this year as “nothing short of awful”, but points to three reasons – including the fact that returns on the IPOs that have taken place have begun outperforming the market – why this fall might see a flurry of IPO activity. As such, he provides an overview of some potential fall IPOs from two sectors showing growth – technology and consumer. To read about these IPO hopefuls – including a manufacturer of high-end coolers with impressive revenue numbers – as well as which big name companies you shouldn’t hold your breath on going public this year, CLICK HERE.