First, let’s break down what are IPOs and APOs. An IPO refers to the process of offering shares of a private corporation to the public in a new stock issuance, while an APO offering is when a company that has already made an IPO, issues a new set of corporate shares to the public.
Companies will typically list an IPO or release APO in order to fund an expansion they don't currently have the cash to cover themselves. For investors, its also means a new trading opportunity.
IPOs can be volatile in the early trading days, which makes it critical that potential investors to learn as much as they can about the company and its future plans before investing in a stock. In reading the company’s prospectus, pay particular attention to what the capital raise will be used for, as often times this determine whether the stock falls in the buy or don’t buy category.
Unfortunately, many newly public companies have experienced huge first-day gains but then ended up disappointing investors in the long run, and the performance may be linked to both internal and external factors. Robinhood, the company that is known for pioneering commission-free stock trading with no account minimums on Friday closed at $34.82, more than 8 per cent below the IPO price; while Future Energy Source Company, FESCO, a company listed on the Jamaican Stock Exchange is showing gains of 92 percent since its listing three months ago.
If you are looking to invest in the IPO/APO then here are some IPOs/APOs to watch out for over the few weeks to months:
US stock market: (Stripe Inc. IPO, Nextdoor IPO, Instacart IPO )
JAM stock market: (Spur Tree IPO, Jamaica Fibreglasss IPO, Barita APO)