IPO Pricing Policy



  • Is it just me or has anyone else noticed the recent tendency to launch IPO players at frankly, Post-Brexit, £ goes into crisis mode, prices?

    Maycon at £1.50 today! Ok he scored a world the other day but he has been bench warming for most of this year.

    Now I am no financial wizard (if my wife were reading this now she would be nodding like churchill the insurance dog!) but surely it would be better to launch all IPOs at, say, 50p and let the market decide the natural price point as people vote with their funds. Surely it would be better to have 100 people holding 100 futures at an average of £1 each than next to no bugger holding a few futures at £1.56 (current price). Additionally, the 2% fee on selling would surely make sense if there were greater volume?

    Maybe I'm missing something but it seems to me that FI are adopting a fairly short-sighted financial stance in pricing the IPOs at such an inflated price point.



  • I'd agree with that mate, you'd expect FI would welcome the capital and commission some of these "never gonna win sod all" players would produce.

    Maybe @FI_Alex can enlighten us on how they're priced?



  • They were originally priced high to prevent a crash , if all ipos were priced at 50p people would take money out of other players which could destabilise the market. That was their case anyway.

    Given average prices have doubled probably then you would expect ipo prices to keep rising.

    I would agree with letting the market find the price if there was a fairer way of doing it such as blind tendering or whatever. Its not great to price them low and have bots hoover up the profits.


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