Initials Public Offerings (IPOs) generate a huge amount of interest and debate amongst investors. Analysts debate value, the likelihood of forecast profit being achieved, the quality of management, and sector outlook. However these factors often have little impact on the share price performance over the first few days or weeks.
Take Freelancer Ltd (ASX: FLN) for instance; the company's shares surged to over $1.50 on day 1, delivering early investors a massive stag profit if they got out early. However the interest had little to do with the fundamentals of the company and the shares have subsequently drifted back to just 54 cents over the last 12 months.
So let's review the performance over 2014 of some of the most significant IPOs from the last 18 months:
- Nine Entertainment Co (ASX: NEC) down -3%
- Pact Group Holdings Ltd (ASX: PGH) up +28%
- Freelancer Ltd down -50%
- Veda Group (ASX: VED) up +16.4%
- OzForex Group Ltd (ASX: OFX) down -3%
- Dick Smith Holdings (ASX: DSH) down -5%
- Vocation Ltd (ASX: VET) down -89%
- Beacon Lighting Group Ltd (ASX: BLX) up +10.4%
- National Storage REIT (ASX: NSR) up +43%
- McAleese Ltd (ASX: MCS) down -85.9%
