IPOs - mass sell off in advance?
The lack of IPOs this year has been a bit embarrassing for FI. By their admission the current platform can’t handle the volume of trading that IPOs induce. I suspect they might be waiting for the new Nasdaq platform before adding the many necessary players to the market. It’s nuts that we have a Chelsea/England defender and Liverpool GK that aren’t on the index. Not to mention the remaining promoted players and emerging youngsters!
Ultimately player values on FI come down to supply and demand. By IPOing the required players they will increase supply and overall demand will not be increased. Instead demand will spread from existing holds to the likes of Camavinga and Fati. It is my belief that FI worry that they will create another market downfall as many people will free up cash to invest in the newbies.
Clearly FI’s objective with this dividend announcement is to try and retain the deposit bonuses in the platform. I half suspect that the launch of the new platform and mass IPOing could follow quickly so as to maintain excitement and confidence. A long lead-in time before the ‘highly anticipated’ IPOs will be damaging to the market.
I think they are holding off the ipos to prevent further dips and dilution which is the sensible thing to do atm.
They also said in future they are going to be dropped in randomly which is probably best thing to do also.