Each year, many companies sell their shares to public in an IPO including SME companies. These are new, young, dynamic companies that can turn out to be exciting new investment avenues. Not all IPOs are good going by their track record post listing. However there are also quiet a lot of companies that have done well.
A typical IPO prospects runs into 400 pages. It is difficult for any single investor to go through the entire prospectus and list of all key details in a short page while IPO is still open. An IPO is open for subscription for a short time. A discussion about pros and cons of an IPO before it closes will provide good insight for anyone wanting to subscribe during the IPO as well as buying post listing. However, it takes lot of efforts to create a separate thread like the regular company thread with all the relevant details. such details typically emerge during the due diligence process. Moreover, many IPOs are not good so they many not deserve a separate thread.
Keeping this in mind and with the permission of admin, I am creating this thread to discuss IPOs (both current and forthcoming) until the IPOs listed and / or we have all the details. This thread can be used only until listing. Post listing, a separate thread should be created as per the forum guidelines. Anyone applying for IPO should have collected required information for creating a thread.
I have prepared a small template which can be used to post details of an IPO or gather relevant details for creating separate thread.
IPO Preview < Company Name>
< Main sources of revenue, expenses and capex>
< Key events in company history such as change of ownership, new products, plants, segments, geography etc>
< key numbers like sales, profits, debt etc>
< key ratios relevant for industry>
< Du Pont analysis recommended>
< promoter characteristics - age, education, history etc>
< promoter salary, dividends, tax payments, debt repayments etc>
< shares offered>
< offer price>
< number of shares outstanding post issue>
Objects of the issue
< main objects and amounts>
< current and proposed capacity and utilization and timeline (for manufacturing companies)>
< estimated market cap - shares outstanding (post issue) * offer price>
< PE, PB ratios on a post issue basis >
<why is this issue interesting (listing gains does not count)>
< risk factors>