An IPO (Initial Public Offering) is a popular way to invest in the stock market for beginners and experienced investors alike. The IPO can be defined as an offering of shares in a company for the first time when they are still private, usually underwritten by one or more investment banks that help determine what price per share is best and how many shares should be released to achieve this price.
Once you buy shares in an IPO, you will own these stocks until their purchase date has passed and the company decides where its stocks will trade on a stock exchange (if they decide to make it public at all).
If you decide not to sell your position after this period, your stocks could potentially be worth millions if the company becomes very profitable. Many startups and even older companies have recently been making an IPO to raise money for their business as venture funding. Other funds sources have become more scarce (or they prefer not to take these risks).
You can find the best opportunities by looking at recent IPOs offered in your region. Keep in mind that you should only look for this information from reliable sources to get accurate data. Many articles related to stocks may include details about the most recent IPOs available, so it’s really up to your personal preference when finding sources. For example, you could look on your region’s newspapers or companies’ websites for this information.
The best IPOs in Asia to Invest in
This is a list of some of the best IPOs in Asia that are currently available to be invested in:
China Yuchai International Limited (Stock Code: CYD)
The most extensive stock by market cap, China Yuchai International Limited, recently made an IPO, with their stocks expected to start trading soon. The company designs and manufactures diesel engines and diesel-fueled two-wheelers used worldwide, particularly in India, where they have a strong presence.
Great Wall Motor Company Limited (Stock Code: 2333)
The third-largest IPO by market cap so far, Great Wall Motor Company Limited, recently made an IPO on May 11th, with their stocks expected to start trading on June 6th. This company design manufactures and sells off-road passenger vehicles and SUVs, pickups and heavy-duty trucks. They have been successful in Australia, Russia, Southeast Asia, and many other markets worldwide.
1MORE Ltd (Stock Code: 1MO)
1MORE is a leading audio company that designs innovative earphones, headphones, and loudspeakers for smartphones, tablets, and MP3 players. With 65 million dollars expected to be raised from this IPO which will take place on May 28th, this appears to be one of the best IPOs to invest in at the moment.
GreenTree Hospitality Group Ltd (StockCode: HOT)
GreenTree Hospitality Group Ltd recently made an IPO on May 11th, with their stocks expected to start trading as soon as June 13th. This company operates as a hotel and resort management group in China. Revenue has increased rapidly from 16 million dollars in 2009 to 215 million dollars in 2012, marking an impressive 833% growth over three years.
GreenTree Hospitality Group Ltd may be a great investment opportunity for many investors worldwide with plans for international expansion.
Minsheng Financial Holding Co., Ltd (Stock Code: MSN)
Another excellent choice that you might want to consider is Minsheng Financial Holding Co., Ltd, which recently made an IPO on March 26th with their stocks expected to start trading at the beginning of May. This company offers credit products and services, including margin financing, loans, card business, and life insurance.
Bottom line
New traders and investors should keep in mind that trading in an IPO comes with great potential for reward and great risk. It is not recommended that you invest more than you can afford to lose since there are no guarantees that the market will increase in value. New traders are also advised to use a reputable and reliable online broker from Saxo Bank.
