Shawbrook IPO

sjw11

I've been relatively satisfied with Shawbrooks interest rates over a few years now.
But does that make it a good investment for an IPO ?

wmb194

sjw11 said:

I've been relatively satisfied with Shawbrooks interest rates over a few years now.
But does that make it a good investment for an IPO ?

No. What do you know about its profitability and net book value relative to the price for a share?

Albermarle

If I was looking at a bank, I would be more interested in the performance of its lending activities, particularly any indications of an increase in bad debts, than what savings rates it was offering.

masonic

As an investor, low savings rates would be a positive case for investment. You wouldn't want to invest in a bank that has to offer a high rate to finance its business.

Eyeful

1. I think you will find that IPO's are offered when the markets are at or near their peak (which is when you should stay away).

2. Investing in a single share is very risky. Best to stick to  fund or ETF.

3. Do you know anything else about  Shawbrook other than you are satisfied with the interest rate they have paid you? Things like (a) Profitability (b) How much debt they have taken on (c) PER

Alexland

I don't know anything specific about this one but "It's Probably Overpriced". Most of research suggests that IPO investors tend to overpay at the start and are likely to have not great outcomes. Still you might get lucky but I prefer to invest in things where the odds are stacked in my favour.