Pre-IPO Allocation
- Thread starter Vivien
- Start date
-
- Tags
- allocation pre-ipo
- Joined
- 30 May 2017
- Posts
- 2,483
- Reactions
- 4,028
Hi @Vivien and welcome to ASF 🤝
A lot of companies that are preparing to IPO offer private investors like us priority shares as outlined in the prospectus, but you'll need to contact them directly. There are minimum purchase criteria like 2k minimum that you'll have to apply for.
I don't have any info on Private Equity firms, so can't help you there.
Unless I am dying to buy something before it lists or I have some insider info
, I usually wait for it to list and see how it trades on the market before buying in.Thanks @aus_trader
Do you know the company called Berenson Capital?
Do you know the company called Berenson Capital?
So_Cynical
The Contrarian Averager
- Joined
- 31 August 2007
- Posts
- 7,404
- Reactions
- 1,328
Berenson Capital - I had a google, doesn't look like anything special.
- Joined
- 30 May 2017
- Posts
- 2,483
- Reactions
- 4,028
No I haven't come across them. I guess they can put together bigger allocations of funds by pooling investor funds together for those IPO's that require large initial investment parcels to participate.
But other than that, I don't really see any advantage. If individual investors can't afford to put up the minimum requirement for pre IPO shares, it's always possible to buy that stock once it lists. You only need a minimum of $500 to buy once it's trading on the asx.
- Joined
- 8 June 2008
- Posts
- 10,113
- Reactions
- 13,225
Short answer NO
I do not really like the way the info comes after your questions:
Not at all against you ,let this be clear
but it looks like this:
@Vivien get a call out of the blue from an unknown company, just a website but could even be supposedly from a very famous finance giant and is told
Send me your money,you will become a privileged investor and get a licence to print money.
This is how much Karen made. Add glowing testimonials
If it is too good to be true, or nowadays too good, it probably stinks
Beware
And do not send money to this ex oil ceo in Nigeria who has selected you to receive this hidden treasure....😁
- Joined
- 30 May 2017
- Posts
- 2,483
- Reactions
- 4,028
I'm going to have to agree with @qldfrog about some of these companies advertising tactics that make results sound too good to be true.
I think you may be better off learning to invest for yourself and buy shares directly in your name and have the ownership of those shares sent to your address as proof of shareholding, rather than handing over your hard earned money to a company that invests on your behalf.
To answer your question about whether the pre IPO shares will be cheaper than buying on market once they list: It really depends on the newcomer company that is being prepared for listing and the state of the overall market.
So if it's a really good company with great prospects (refer to their IPO prospectus), chances are the IPO price offered say at 20c may be cheap and it may debut on the asx as a new listing at 25c and then trade like any other listed company through it's ups and downs. But if it's a piece of crud that's being dressed up like a beauty then it may list at 15c on it's first day of trading and go downhill from there...
I've been in the market for a long time and during major downturns like GFC and the viral crash we just had, IPO's can get marked down as well because of the overall fear in the market and start trading lower than the pre issue price. And it's harder to raise capital for IPO's during market downturns/crashes so the number of IPOs drop drastically during doom and gloom.
If you are completely new to the share market, it can be a bit overwhelming but there's a lot of help around here. You can research any listed company and see what members think of it by doing a search. Not sure if any members are covering any IPO's before they list, there might be some info if you search around.
Some members also share their share portfolios and methodology for buying and selling on this forum like @qldfrog, @peter2 and a few others. You are welcome to look at my Speculative Stock Portfolio as well here at Aussie Stock Forum.
There's also systematic approach to share trading that's covered well in @Skate's Dump it Here thread.
I think you may be better off learning to invest for yourself and buy shares directly in your name and have the ownership of those shares sent to your address as proof of shareholding, rather than handing over your hard earned money to a company that invests on your behalf.
To answer your question about whether the pre IPO shares will be cheaper than buying on market once they list: It really depends on the newcomer company that is being prepared for listing and the state of the overall market.
So if it's a really good company with great prospects (refer to their IPO prospectus), chances are the IPO price offered say at 20c may be cheap and it may debut on the asx as a new listing at 25c and then trade like any other listed company through it's ups and downs. But if it's a piece of crud that's being dressed up like a beauty then it may list at 15c on it's first day of trading and go downhill from there...
I've been in the market for a long time and during major downturns like GFC and the viral crash we just had, IPO's can get marked down as well because of the overall fear in the market and start trading lower than the pre issue price. And it's harder to raise capital for IPO's during market downturns/crashes so the number of IPOs drop drastically during doom and gloom.
If you are completely new to the share market, it can be a bit overwhelming but there's a lot of help around here. You can research any listed company and see what members think of it by doing a search. Not sure if any members are covering any IPO's before they list, there might be some info if you search around.
Some members also share their share portfolios and methodology for buying and selling on this forum like @qldfrog, @peter2 and a few others. You are welcome to look at my Speculative Stock Portfolio as well here at Aussie Stock Forum.
There's also systematic approach to share trading that's covered well in @Skate's Dump it Here thread.
thank you so much guys @aus_trader @qldfrog @So_Cynical, it's so glad to see people here genuinely want to help each other.
I'm fresh new to stock market. So I hope I can learn lots from you guys.
What's about the new fintech company's shares? do they grow better on the IPO date?
BTW the cute big is the best part of your answers
I'm fresh new to stock market. So I hope I can learn lots from you guys.
What's about the new fintech company's shares? do they grow better on the IPO date?
BTW the cute big is the best part of your answers
- Joined
- 30 May 2017
- Posts
- 2,483
- Reactions
- 4,028
A lot of companies have come on the scene lately on the asx trying to be the next AfterPay. Also many more stocks are coming onto the market with new IPO's in the same sector. With so much competition, really have to be picky with which fintech companies to invest in.thank you so much guys @aus_trader @qldfrog @So_Cynical, it's so glad to see people here genuinely want to help each other.
I'm fresh new to stock market. So I hope I can learn lots from you guys.
What's about the new fintech company's shares? do they grow better on the IPO date?
BTW the cute big is the best part of your answers
By the way am not avoiding the fintech stocks, in fact I have a dividend paying fintech stock currently in the speculative portfolio. But just very selective as to which companies to back as you can be spoilt for choice.
Thanks @aus_trader. Can you please recommend some reliable platform to buy US fintech shares
- Joined
- 30 May 2017
- Posts
- 2,483
- Reactions
- 4,028
If you were trading on the Australian markets, ASF recommends opentrader who sponsor our monthly stock competitions with cash prizes. See this month's stock picking competition thread: September Stock Tipping Competition Entry Thread!
But you mentioned US shares as well, and selfwealth offers Aussie shares and US shares on the one platform.
Richard Dale
Norgate Data
- Joined
- 22 February 2005
- Posts
- 192
- Reactions
- 78
Float (initial public offering): - stock that is offered to you because other people have turned it down. The guiding principle in relation to floats is as follows: "never participate in a float that you are able to participate in."
