Initial public offerings (IPOs) have a way of grabbing our attention. As an investment analyst, the phone rings off the hook with “well-meaning” bankers providing updates on the latest hot listing, and diaries fill up with meeting requests. Post listing, it’s amazing how these roadshows dry up.
Some can be good investments, but most often the risks outweigh the reward. There are many reasons why the barrier to investing in an IPO should be higher than simply purchasing shares on the secondary market, but there are a few key lessons we have learnt from 26 years of investing around the globe...
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