QUOTE(contestchris @ Mar 28 2017, 12:36 AM)
As long as it is a decent company with a good track record, share prices always tend to go up post IPO.
Now what's the catch here? Can anyone really apply for IPO with Direct CDS account? Surely there is a catch. How is ballotting done? If oversubscribed x10, will they just divide each person application by 10 times? Or is it totally random, or is it they will pick those with the largest lump sum investment?
While waiting for others to reply, here is my 2cents.
Firstly, you do know why a company chooses an IPO as a means of raising funds apart from taking a loan, right ?
Read thisThere's no catch over here except you have to use your own sound judgement and assess if the given IPO is worth to subscribe too and what's your Investment/Trading plan? (Are you buying it for the long-term, medium term or planning to flip it on day 1 of it being listed).
Now to answer this question:
Can anyone really apply for IPO with Direct CDS account? The answer is yes, as long as you have sufficient funds to apply for the desire number of units
Now to answer this question:
How is ballotting done? Link 1Link 2I tried calling up
Tricor somewhere around last yr to enquire about the methods of allocations and the representative that i spoke to replied by saying this "We have set a predetermined formula which is being tweaked based on various factors such as the demand for the IPO etc and thereafter the allocation is being made accordingly.
Asked them to explain the predetermined formula that they set and got a reply saying that "It was PnC"