An Initial Public Offering, IPO or ‘float’, is the first offer of a company’s shares to the public, leading to a listing on the ASX. Such company IPOs and capital raisings provide investors with the opportunity to make new investments.
The benefits of investing in IPOs include the advantage of buying the stock at its initial issue price, as well as the potential for very good returns when the market is steady and rising.
However IPOs are less likely to suit a conservative investor due to the risk they carry. They can be very volatile, over-valued and issued from small companies. You can’t rely on a performance history and they can be more prone to failing in a down market.
At Burrell, IPOs are mostly traded within fixed interest investment. As a Burrell client, we’ll give you priority notice of IPOs and capital raisings, together with our recommendation for action. We’ll provide you with a prospectus or Product Disclosure Statement (PDS), which includes the issue price, the minimum application amount and who the funds are to be made payable to. We will also provide closing dates, share registry contact details and the expected allotment dates.
Contact us for an obligation-free conversation.
Call 1300 4 BURRELL for more information.