Performance of Singapore IPO (2013)

I’m a frequent subscriber of Singapore IPOs. Whenever there is a new listing, I’m sure to subscribe. It’s fun, and profitable if you know how to do it. I like this fast cash transaction, allowing me to earn $100-$200 per time.

How To Play IPO?

Many people are playing IPO just like me. Every one of us will have equal chance of getting some shares during the balloting. There’s no tips to that, except to spend your $2 and pray.

So what if you successfully awarded some shares? What can you do with it? Flip them for fast cash? Hold it for a period to maximize earnings, or hold it for long? Let me share some of the findings with you.

Singapore IPO in 2013

2013 is a good year, and till now while I’m writing this post (2th Aug), 18 IPOs were listed successfully on SGX. On average, we have 2 per month!

Singapore IPO 2013

Singapore IPO Opened Price

So what happen when the IPO was launched on the opening day? Do they jump higher than the IPO price, or the early investor make a loss? Let’s see the chart below.

IPO Opening Price

As you can see from the table, most of the IPO (88.89%) opened with higher prices.  So far in 2013, only 2 companies opened with prices lower than the initial offering price.

So what about the closing price on the first day?

Singapore IPO Closing Price

The table below will reflect the first day closing price.

IPO Closing Price

Slightly worst than the opening prices, with 4 companies losing, or equal to the initial offering price. Your chances of earning dropped to 77.78%. What about 1 week from the opening day? Will the performance fair better or worst?

Singapore IPO Prices (1 Week Later)

This table will show you the IPO prices after 1 week they’ve launched.

IPO 1 WeekThe data seems to have more red than green. From the above table, you can see after 1 week, only 4 companies are left in the green. Your chances of making a profit dropped further to 23.53%.

Lastly, I’ve compiled the performance of the IPO prices after 1 month. Let’s see.

Singapore IPO Prices (1 Month Later)

The last table will show you the companies performance after 1 month. This is what happened.

IPO 1 Month

Totally bad! From the data, you are left with 1 green company (Mapletree Greater China Commercial Trust). Your chances of winning dropped to a mere 12.5%!

How To Play Singapore IPO

So from the above data, you can see that in order for you to make a profit from Singapore IPO, the strategy is to hit and run. Sell whatever you have within the first hour of the opening. You have 88.89% of winning. Once you waited till the closing or the 2nd day, your chances dropped to 77.78%.

So what’s your thought? How do you play IPO? Do you keep, or hit and run? Let me know in the comments below.

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s