40% IPOs this year failed investors amid weak secondary market conditions

Weak secondary market conditions weigh on listing-day performance

Initial public offerings (IPOs) have attracted droves of retail investors to the stock market in CY22. But these applicants have lost money on 40 per cent of the fresh issues this year  — a trend that may impact sentiment towards maiden share sales during the remaining part of the year.

Of the 14 companies that have listed this year, five have closed below their issue price. The trend is not very different when compared with the same period last year. Five of 16 companies that had listed during the first five months of 2021 had delivered negative listing day gains.