price below IPO?
Talia asks:
If a company gives an IPO of Rs 100/share(say), is it possible that the price of the share can go below Rs 100/share in the stock market..??
If a company gives an IPO of Rs 100/share(say), is it possible that the price of the share can go below Rs 100/share in the stock market..??
And which is better to buy..? Scripts with less IPO or high IPO..??
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Yes, it is possible.
It is very possible for a stock to go below its IPO price.
As for the high or low IPO, there is no set rule for this. Google opened up high on its IPO, and many people thought it was too much. Now Google has more than made 8 times their IPO. Blackrock opened at around $30/share, and many thought it was cheap and that the stock would explode after that…it hasn’t…in fact, it had dropped below that market for a brief moment.
IPOs are tricky. You need to know their figures before you invest. You need to know what sector they are in and how strong that market currently is. If an IPO opened in the Insurance industry, than they would suck, as there are too many companies in that sector and it has a very narrow spread. So it depends on the analysis.
Hope this helped.
yes, it is possible for the share price to go below issue price when it lists.
re purchase it is not the question of cost of ipo, but the quality of the company of which u want to buy the ipo.
the offer price is one that is decided by the issuer and u enter into an IPO basd on the offer price. but the price at which the firm gets listed in the stock market is called list price. once the firm gets listed, it starts to trade according to the demand and supply factors. if the offer is highly subscribed combined with good future prospects, then it will trade higher than the offer price and list price. but firms which have poor background will fall lower than offer price. so just check the fundamental and market demand and then decide to buy the firm. even u can use the opportunity to buy firms trading lower than offer price if they can go up in future.