Want to feel like a rock star investor? Get into the small IPO’s. Anyone who was able to get IPO’s this year has been feeling that way, excluding IPO’s where commercial bank’s were the underwriters (here’s looking at you KBANK and SCB). The basic framework for IPO’s performing well on their first day hasn’t changed, if the market cap, free float are small enough, first day returns were and are likely to continue to be amazing given the market environment.

On the flip side, is this really a good thing? Shouldn’t IPO prices remain somewhat constant on their first day? If we’re seeing such high positive first day movements then the investment bankers aren’t doing their jobs properly on behalf of their clients (the listing companies) and are mispricing everything thereby missing a lot of potential capital..meh as if people care…

Source: Bangkok Post