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New IPOs

Hi,

My 'strategy' regarding IPOs is:  Stag It !

Once an IPO has surged sufficiently,  grab  the profit and  go look  to buy the many other opportunities. Why waste time going through the ups and downs?  :)

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Hi Richardo, can I check to clarify. If I apply an IPO for 50 lots and my friend apply the IPO for 51 lots. My friend will get better chances of getting allotted some (tikam kena) because the IPO balloting mechanism somehow seems to favour (tikam kena) the 51 lots (odd number lots) rather than the 50 lots. And it's the same for 11 lots and 10 lots. 

 

More likely the first week it will rise more as the sponsor needs to lent support to it, pending results soon, stablisation in play and over-allotment option. The over-allotment means the company is actually raising more ipo funds via this method. Hence down the line there will be further dilution of earnings. Of course some will go down straight non stop as those in the upper inside track knows the results or sth is terribly below mkt expectation.

 

Hi SingGal,

Thank U for your advice and clarification.

 

Hi Ricardo,

Sorry... maybe I didn't state the entire facts... so may have confused some of you.

The article I read said something like... if you bought IPOs, it'll usually rise within the first month... then after the hype is over, it'll fall again. So if you bought into IPOs within the first month and sold it the next, you will probably incur a loss.

Of course most stocks are now trading above the IPO price. This is because they've been in the market for a long time already.

 

Hi SingGal,

This cannot be true lah! Most counters, if not all, came through the IPO route. Most, if not all, are definitely trading way above IPO price today.

 

Statistically, if you bought into IPOs and sold within a month, you'll probably make a profit.

If you held on any longer, you might incur a loss. Read that somewhere once....

 

Hi,

From observation of past balloting results, the balloting ratio and quantity (in lots) allocated for successful applicants are usually set at 1, 2, 11, 51, 101 lots etc...and not any other quantity in-between.

 

 

Hi eunoseunos

taybc1071 is right with his explanation, though I have no insight how and why the IPO underwriters came up with this method of balloting. 

 

hi eunoseunos, from past balloting results, 1-10 appl you can 1 lot if successful.11-15 maybe you get 2 lots. So that's the reason behind for applying for odd lots. Hope this help to clarify your doubt.

 

Irenel, any reason why odd numbers. eg why 11 and not 10. can you share the reason behind the magical numbers.

 

I believe balloting is right, but not sure its done randomly.

If you really want to own some IPO shares, suggest you apply for them in odd numbers, ie. 11 lots, 17 lots, 21 lots, etc. This way, you might be alloted 1 lot, etc. 

 

by random balloting....



I used to think its by 1st come 1st serve.

 

Has anyone been successful in getting New IPOs in the market? And how is the IPOs been distributed to the public? Is it the first come first serve type?