IPO thoughts?

[samuilk]

Hi,

Can you give your recommendations on the following 2 IPO's.

https://www.onmarket.com.au/offers/australian-industrial-minerals-ltd/

https://www.onmarket.com.au/offers/axs-group-ltd/

Thanks,

Sasha.

 

[greggles]

Hi Sasha, it's hard to offer an opinion, much less a recommendation, on a stock that is yet to list on the ASX. A prospectus is in many ways a promotional document that is designed to talk up the prospects of the company and is not an objective overview or analysis.

Are you thinking of participating in these IPOs? If so, what do you like about them?

 

[samuilk]

Hi Sasha, it's hard to offer an opinion, much less a recommendation, on a stock that is yet to list on the ASX. A prospectus is in many ways a promotional document that is designed to talk up the prospects of the company and is not an objective overview or analysis.

Are you thinking of participating in these IPOs? If so, what do you like about them?

Thanks for your response. I'm aware that all these IPO's are designed to gain investors so they will sell themselves as much as possible.

I haven't ever invested into any IPO's, my portfolio consists of well established companies in Aus and International markets. But I am not one to try something 'new'.

In all honesty, I was just wanting to gain some perspective about either company and see if anyone has invested in companies similar, to bring light whether these companies are new or in any way innovative, which if so, I would then do further research into each company.

As for now I have not received any suggestions that either company is new or innovated.

Thanks,

Sasha

 

[greggles]

As for now I have not received any suggestions that either company is new or innovated.

It might be an idea to wait until the companies list and then see what the market thinks of them. There have been some really bad IPOs recently, so it's always a good idea to be cautious with newly listed companies.

 

[bigdog]

PropertyGuru is the second float flop for UBS and PropertyGuru shareholder, private equity giant KKR in a week following Latitude Financial's $3.2 billion failed IPO which UBS also jointly managed with other investment banks. Not getting the price they want and buyer concerns about what they are selling!


https://www.theage.com.au/business/...investors-baulk-at-price-20191023-p533l3.html

PropertyGuru float flops as investors baulk at price

By Sarah Danckert
October 23, 2019

A company specialising in online real estate classifieds in south-east Asia has been forced to shelve its $1 billion float on the Australian bourse after volatile equity and property markets saw investors baulk at its offer price.

Singapore-based PropertyGuru, headed by Hari Krishnan, pulled its $362 million initial public offering on Thursday after only finding support at the lower end of its pricing range.

PropertyGuru's shares had been priced during the offer at $3.70 and $4.50. The share sale, if successful at the midpoint of that range, would have delivered the real estate classifieds website operator an enterprise value of $1 billion. PropertyGuru operates digital property classified marketplaces in Singapore, Vietnam, Malaysia, Thailand and Indonesia.

Top investment banks Credit Suisse and UBS were managing the float. It's the second float flop for UBS and PropertyGuru shareholder, private equity giant KKR in a week following Latitude Financial's $3.2 billion failed IPO which UBS also jointly managed with other investment banks

KKR was also a major shareholder of the Ahmed Fahour-led Latitude Financial. Another private equity group TPG is another large shareholder in PropertyGuru.

KKR and TPG were not planning to reduce their combined 58 per cent stake in PropertyGuru via the float and had committed to holding the shares until February 2021.

PropertyGuru chairman Olivier Lim confirmed in a media release on Wednesday afternoon that the float had been withdrawn.

“Despite strong engagement throughout the process with prospective investors, the board and existing shareholders have determined not to proceed with the offer," Mr Lim said.

"This decision took into account current IPO market sentiment," he said.

Mr Lim indicated that PropertyGuru may not look to refashion the offer, saying that should the company seek new funds to support its growth it would look to its committed existing shareholder base and private capital markets.

032

 

[Knobby22]

Also the Boost Juice failed.