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IPO's and quick profit.

Previously I have taken up these when my bank/share folk have offered them. 
Opt in, and sell on the day and make some profit. 
Royal Mail was one I made a tidy sum from about 5 years ago. 
I have one from "NextEnergy Renewables Limited Share Offer" that has just popped up?? 
Anyone with views on this? 
Many Thanks in advance. 


Comments

  • Royal Mail was a banker, I wouldn't read too much into the strategy by using that as a yardstick. 

    There's no guarantee that you'll be able to turn a profit by selling on day 1 of an IPO.
  • Many IPOs are hyped up and actually trade lower on their opening debut. You have to judge each on it's merits and make up your own mind. The days of 'tell Sid' are long gone.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 17 February 2021 at 9:59PM
    There's no guarantee that stagging an issue will result in a premium. NextEnergy Renewables will incur costs costs in launching the fund. Which may result in an initial discount. Not as if it's a fully fledged trading business. Going to take a while to be fully invested. Though on the plus side if the fund appeals to you entering on the ground floor is the time to invest in such funds. 
    Been a number of such launches. London is gaining a reputation for expertise in this area. 
  • Apodemus
    Apodemus Posts: 3,410 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Combo Breaker
    If I am reading the Nextenergy Renewables issue details correctly, they are looking at a £300m issue, but with up to £500m available if it is oversubscribed and they plan to sell on up to the £500m level in the first year.  Does that not imply that there will be a large overhang of available shares that could potentially restrict any upward pressure on share price?
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