Tag Archive: Secondary market


Shall IPOs be abolished ?

The IPO season is back in the Indian market; Yesterday Thyrocare got listed on Indian bourses with more than 50% IPOof premium. Ujjivan Financial Services will make the debut today, Parag milk foods owner of Go and Gowardhan brands of dairy products, is in the pipe line.

I have been always arguing the case Do IPO’s really make money for the investors?  Yes/No

There is a proactive paper published in 2012 arguing that Initial Public Offerings (IPOs) must simply be abolished by Adam Pritchard (“Revisiting ‘Truth in securities revisited’: Abolishing IPOs and harnessing markets in the public good”). He suggests that Continue reading

It was almost a slag of 3 years the Initial public Offerings (IPO) was out of fashion in the Indian markets. Now they are back, so are blogthe bulls back on Indian bourses? Yes they are. How long they will last? I don’t know.

The Wonderla IPO was subscribed over 38 times on the final day of bidding, next in line: L&T Technology Services and L&T Infotech, Bharat Business Channel, Hindustan Aeronautics Ltd, Tarini International, Manpasand Beverages, Adlabs Entertainment, Quick Heal to name some.

Have done series of posts the IPOs as they are controversial in nature.  The paper by Pitchard “Initial Public Offerings (IPOs) must simply be abolished” is worth a read.

Well IPOs are always overpriced? Continue reading

Matt Levine through the deal maker did lovely story of Facebook IPO on Nasdaq . The First few pages are worth a read . imagesHere are the details from SEC account

In a typical IPO on NASDAQ, shares of the issuer are sold by the IPO’s underwriters to participating purchasers at approximately midnight and secondary market trading begins later that morning. Secondary trading begins after a designated period – called the ‘Display Only Period’ or ‘DOP’ – during which members can specify the price and quantity of shares that they are willing to buy or sell (along with various other order characteristics), and can also cancel and/or replace previous orders. The DOP usually lasts 15 minutes… Continue reading

Over Priced – IPO

I have done a series of posts on this topic and a paper by Pitchard “Initial Public Offerings (IPOs) must simply be abolished” and some fine prints reading of IPO’s “WHAT TO READ IN AN OFFER DOCUMENT ?? “.

In the recent days about how evil banks and corporations are for allowing their IPOs to be “overpriced”. I believe this is a misinterpretation. The whole point of an IPO is for it to be “overpriced”.

This argument about IPO pricing appears like another case of people Continue reading

It is a provocative paper arguing that Initial Public Offerings (IPOs) must simply be abolished by Adam Pritchard (“Revisiting ‘Truth in securities revisited’: Abolishing IPOs and harnessing markets in the public good”). He suggests that “companies bec[o]me public, with required periodic disclosures to a secondary market, before they [a]re allowed to make public offerings”.

Pitchard wrote

“No one believes that IPOs reflect an efficient capital market. In fact the evidence is Continue reading

%d bloggers like this: