Readers of my blog know that i hesitated quite a bit when I gave my ratings on Procurri over the weekend. In fact, i was quite hesitant to give it a 2 chilli rating but what eventually made me do it was the positive sentiments and demand from so-called "branded institutions" and you saw 4 of them in my update on balloting results.
Well, the beliefs that DBS was a "picky" manager and the presence of long only institutions is good for the IPO are probably "unfounded". The IPO didn't open as i expected and even tanked towards end of the day.
While the ratings were done in good faith, I am actually quite upset with myself for not giving it a lower rating despite my reservation about its high valuation. As such, i am sorry to readers who was allotted shares based on my review.
I would like to take this opportunity to share a few "lessons" on IPO for readers.
- Always invest based on your own analysis and understanding. My views should be just a reference and not a decision point
- Always have a plan when you subscribe for a IPO on the price level to take profit and the price level to cut losses.
- If the IPO does not perform accordingly to your expectation, make sure you have a a cut loss plan and move on.
- IPO punting is not a substitute for retirement or long term investing.