Whenever a new initial public offering (IPO) is announced, there’s almost always a sense of buzz and excitement among investors. There are stories abound of people making some quick bucks off flipping IPOs and some might feel that they too can make some kopi money through IPOs.
However, before we get all too excited and jump onto the IPO bandwagon, we should learn more about the company that is set to go public and not invest in shares solely based on “success stories”.
A company’s IPO prospectus has all the required information we need to know about the IPO. However, a prospectus is usually hundreds of pages thick, and we won’t have the time to peruse through the whole thick tome.
Therefore, here’s a quick summary of things you should look out for in the IPO prospectus before you consider buying an IPO.
TL;DR: 8 Things To Look Out For...