Inspired by the success of the recent float of fertility clinic operator Virtus Health (VRT), another dozen floats worth around $3.7 billion are expected to come to market between now and year’s end. If the calibre of companies in the float pipeline is anything to go by, this offers you a rare ground-floor entry into quality stocks on the cusp of a promising growth trajectory.
The share market has no shortage of IPOs that bombed, and relatively recent newcomers like Collins Foods (CKF) and Myer (MYR) have both struggled to trade above their float price.
To avoid future disasters you need to pressure-test your argument for IPOs against key performance criteria. Skaffold’s IPO tips should help you unearth the next Flight Centre (FLT) and avoid the buying the next Myer (MYR).