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Tuesday, 10/21/2014

Prada i.p.o.

POSTED BY bawlucks (3 yrs ago)

a friend suggested that i look at buying into the Prada IPO in june.
I have been doing some research on this, but im definitely not a savvy trader to say the least, but i do like Prada and they seem to be making a good increase in profits
Is this a risky bet or a smart move??
I would probably look to invest around $300,000 and then get out if i can make a quick profit.

Any advice or thoughts would be appreciated

#1 POSTED BY Topol (3 yrs ago)

Not a game I'm particuarly keen on but if you are just looking for a quick profit then you need to assess how much demand there is for the issue and if the pricing is reasonable. It's still a bit early to be able to tell, you won't be able to get feel until you can assess institutional demand and the retail lists open on June 10. The Milan Station IPO must make the Prada IPO look tasty but you'll have to wait and see.

#2 POSTED BY bawlucks (3 yrs ago)

Thanks TOPOL,
i really am inexperienced at this
how easily do you think i would be able to unload it on the first day, if it were to go up over ten percent?
With IPOs, do prices usually go up big at first and then come back to reality quickly?

#3 POSTED BY pmje (3 yrs ago)

Have a look at my website www.ipo-book.com and buy my book, 'IPO: A Global Guide', which is an up-to-date, practical guide to conducting an international initial public offering (IPO) for issuers, entrepreneurs, market practitioners, students in business or finance - and anyone generally interested in IPOs and equity capital markets (ECM) transactions.

It covers all the individual steps throughout the issue process and is the only publication with a truly global outlook, and a focus on market practice and transactions across the Asia-Pacific region, the Middle East, Europe and the Americas.

The book explains, in a straightforward, jargon-free style, the reasons why, and how, private businesses turn into listed companies; the strategies, procedures and documentation; as well as the valuation, marketing, investor base, pricing and allocation of an IPO. It also addresses post-IPO processes, including price stabilization, investor relations, as well as financing and other activities after listing.

The guide includes many recent, real-life case studies; a unique, extensive glossary of more than 550 industry terms; a review of listing requirements for major stock exchanges around the world; and sample documents to support the explanations. It discusses all equity products, from straight equity to units in real estate investment trusts (REITs) and infrastructure funds to more recent ECM developments.

Hong Kong University Press, HK$395, available at Dymocks, Kelly & Walsh, Bloomsbury and at all good bookshops in Hong Kong, as well as on Amazon, in both hardback and in Kindle/e-book editions.

#4 POSTED BY Loyd Grossman is Miss Venezuela (3 yrs ago)

Be careful. Firstly you are probably now going to get about a million people sending you personal messages about the best way to invest your money - the vast majority will be fraudulent. Anyway, in reply to your question. The first thing you need to consider is how important that HK$300,000 is. If it's your life savings, then putting it into the Prada HK IPO is not a sensible idea - though it may turn out to be a great investment. It would be more sensible to choose something less risky like Tracker Fund or HSBC. I'm not going to invest in Prada for the following reasons: 1) Companies only tend to do IPOs when their sector is in fashion - ie when they can get the highest price for their company 2) The current trend amongst Chinese for buying expensive hand bags may stop or Prada may become less trendy 3) Managers at listed companies have more pressure to make money which, in turn, increases the temptation to generate revenue from anywhere. This usually ends up with the brand being destroyed. Manager A: We can increase our sales by selling our bags in ParknShop. Boss: Great idea! Okay, we all know it's not a great idea but you should never underestimate the stupidity of a listed company dazzled by the lights of an extra buck (cf Lehman et al). Personally, I like HSBC because nobody appears to like it at the moment so it's a bit on the cheap side. If I want to borrow money, I go to HSBC. I don't go anywhere else because I get a good deal at HSBC. However, this doesn't mean that the Prada IPO won't rocket - though the guys at Prada already know about the Milan Station success so this will be reflected in the IPO price.

#5 POSTED BY bawlucks (3 yrs ago)

Thanks for you posts on this everyone.
after reading your thoughts, i have decided to pass on this cause it's too risky and im clearly out of my league.
although, i still guess there could be a nice profit from this one.
I think ill just keep my cash in RMB for the time being. it's doing quite well :) especially today
im just sitting waiting for some big economic event to provide a good buying opportunity and its tough to remain patient ... lol
appreciate the advice!
cheers


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