Did you know that the best 5 IPOs of 2021 gave returns of more than 100% each in less than a year? On the other hand, the worst 5 IPOs of 2021 gave negative returns of more than 10% each, with the worst IPO destroying 50% of investor wealth! In this article, we discuss the factors that you should consider while investing in an IPO.
The overall market has done well in the last couple of years, barring the COVID-19 related setback in March-April 2020. As the market has been hitting new highs regularly, many companies are coming out with their IPOs. In this IPO frenzy, most companies have listed at a good premium to the issue price and created more wealth for shareholders after listing.
However, some companies have listed at a discount to the issue price or have listed at a premium but have given up all listing gains after that. As an investor, you need to be aware of certain things while choosing an IPO for investment. In this article, we will discuss the key factors to consider while investing in an IPO.
What to consider while investing in an IPO
Here are some factors that an investor should consider wh...