IPO fever, do your financial homework 1st to avoid getting burnt.

 

Prospectus (managing risk & don get caught investing blindly, an understanding the value of investing).

 

Financial ratios (Look for px to PE ratio, px to NTA value, dividend policy, gross, net profit margins & returns on equity).

 

Usage of IPO proceeds (proceeds for working capital and expansion or be use to clear debt).  

 

Market Sentiment: (Bullish or none-bullish business enviroment on it IPO's listing).

Earnings track record (watch for past earning over last 2-3 years, no sudden record performance in sales and profits).  

 

Pricing (a key indicator on share price performance. PER-lower ratio the better it share value the share price offers).

 

Strategy: Buy and hold, buy and sell or buy and stag ? (stagging-selling IPO shares on the 1st trading day).

 

Outlook for IPO market (bullish 60 IPOs was listed in SGX, raised a mind-boggling $7.6 bil, 25% more than 2005).

 

UBS & DBS Bank (joint lead mgrs) for Yangzijiang Shipbuilding IPO is S?pore's largest so far this year. And more choices are in the offing. 'The reason is that the foreign merchant banks have finally realised that there is a really huge Sing dollar deposit base in Singapore that is extremely hungry for 4-5% interest-yielding. In today, a more volatile market environment, yield-driven structures such as Reits and business trusts will continue to do well.

 

Hope it help and with Best Regards.