It's not too late to get on board some of the more recently listed companies which have undertaken initial public offerings (IPOs) in the past few months.
Getting into a company with solid growth prospects soon after it lists can be exceptionally rewarding for investors with a buy-and-hold mentality.
Of course there are also plenty of IPOs that don't turn out well!
Consider, for example, the dismal share price performances of vocational training company Vocation Limited (ASX: VET) whose share price has declined around 94% since it listed in December 2013!
So, while it is important to remain vigilant and avoid the low grade offerings, here are a few that could be worth considering.
- Retailer Baby Bunting Group Ltd (ASX: BBN) is up over 16% since first trading on the ASX in mid-October. With many parents waiting until later in life to have children – which means parents with higher disposable incomes – coupled with a store roll-out program, spending at Baby Bunting stores look sets for further growth.
- Listed investment company (LIC) Platinum Asia Investments Ltd (ASX: PAI) is managed by highly regarded funds management firm Platinum Asset Management Limited (ASX: PTM). With Asia a bright spot in terms of global economic growth rates and considering how over-exposed to domestic equities most Australian-based investors are, this newly listed LIC could be a low risk and simple way to gain exposure to the Asian region.
- Link Administration Holdings Ltd (ASX: LNK) is the largest of the three IPOs mentioned here with a current market capitalisation of $2.7 billion. While its share registry operations compete with Computershare Limited (ASX: CPU) much of its business is skewed towards Funds Administration where it sees significant growth opportunity.
