HomeShare PricesShare ChatFinance NewsBlogsMember Blogs
Expert BlogsLive PricesShares BookshopFinance ToolsMembers
Expert BlogsLive PricesShares BookshopFinance ToolsMembers
Latest Share Chat
Naked Trader Blog
Return of the IPO?
Wed, 10th Mar 2010 - Author: Robbie BurnsIt looked at one point last month that 2010 was going to see the return of lots of new issues to the market.
That is, companies hoping to ‘float’ on the stock market. There were one or two of these floats I quite fancied, but they were nearly all cancelled because of market volatility.
These included Travelport which would have been quite a big one. Also cancelled were New Look and Merlin Entertainment. Shame, as they all looked like reasonable prospects.
However, all of a sudden there are quite a few companies that look like they are going to go ahead with new listings.
Maybe it’s because the market has been a bit smoother recently but, whatever the reasons, it looks like at last we are going to see some decent IPO action.
One to be listed very shortly is African Barrick Gold, which is being spun off from Barrick Gold, a massive Canadian listed gold miner.
It is going to list its Tanzanian assets, which will value it at around £2.4 Billion, definitely giving it a place in the FTSE 100 in June.
I like the look of this one: I would imagine Tracker funds will have to buy in and can see the price pushing up nicely ahead of FTSE entry. Of course, it does carry some political risk.
Essar Group - one of India's biggest conglomerates - is looking at listing its oil and gas operations in a predicted three million dollar listing, which would put it very close to entry into the FTSE 100 along with Barrick.
Essar says it will make a decision about whether to float or not in the next 6 weeks.
One company shortly to list that is also offering shares to the public at issue price is Supergroup.
It owns some ‘cool’ brands, kids, including Superdry and Cult.
You can buy up to £13,000 worth of shares at the IPO price online - the offer to buy shares is open from March 15th through to March 22nd.
Go to www.supergroupholdings.com to register/buy - if you want to after doing your research.
Finally, Promeathean, which makes interactive whiteboards for classrooms, is expected to debut this month - it needs to raise funds to develop its products over in the US.
That certainly looks like an interesting one. Although the market for its products looks limited in the UK, apparently over in the US this is a much newer market. The size of this one should get it into the FTSE 250.
I reckon, depending on price, I might get involved in some or all of the above, but a lot depends on market sentiment at the time of launch for these companies so I shall see.
But it is great news to at last see some IPO’s!!
I'd end with a caution: You ought to seek financial advice from an Independent Financial Adviser (IFA) before proceeding with any investment, and I ought to point out I'm not one and my article is about what I might do. If you buy any of the shares, it's at your own risk, etc. and in any event don't be tempted to play with money you can't afford to lose.
For more from Robbie, please check his website www.nakedtrader.co.uk
Have something to say or ask about this blog entry?
Then use our comment box to tell us and everyone else about your thoughts.
The contents of all 'Comments' should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
You need to be a member to comment on a blog entry
Login here, or click here to register for our free Member Services.
Blog Calendar
Most Recent Blog Entries
Datafeed and UK data supplied by NETbuilder and Interactive Data. While London South East do their best to maintain the high quality of the information displayed on this site, we cannot be held
responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.
"Promothean interactive whiteboard....useless imho"
- article8
"Well the worst ipo float would be if you put your money into New Look bad company with very bad shading of operational health. Since Phil Wrigley left Carl Mcphail has been trying to fill his shoes...Del Boy would have done a much better job than him because at least we see we have what we have rather than Mcphail who is nothing than a fat lazy dreamer with no pulse on the real losers he employs to do his bidding. Let us just for one instance put aside the £1 Billion + debt and focus on the core survival stratergy that global invasion will save New Look and pull the wool over seasoned pi's..... I think not!"
- ftseking
"Nice post. The last time I messed with IPOs was in the dot com days and that was highly lucrative as long as you sold out at the inevitable peak following the IPO <b>banktech</b>"
- banktech
"thanks for info..how can a private investor buy ipos for essar group..?? "
- gainer
"I did read about New Look cancelling their planned 'float', from memory the piece I had read had focused on the company debt and the fact that investors were somewhat more risk aware in the markets now so the time wasn't right. Essar, were they not tipped to buy Caledon resources? Are they not looking to raise funds for growth/aquisititions?($3billion I believe) May be an interesting one to look at. Oh, nice to have you posting here, I have to admit to being really slack and never reading any of your books, I suspect someday I may get round to it."
- boredmum