IPO Investment Complete Guide: How Beginners Can Easily Start

Investing in IPOs (Initial Public Offerings) is an attractive investment method that can yield high returns in a short period. However, thorough preparation and strategy are necessary for successful IPO investment. This guide aims to cover everything about IPO investment in detail, from the IPO application process and investment decisions to post-listing management.

How to Use an IPO Calendar

• Peanuts IPO Calendar: This is the most useful tool for checking the results of demand forecasting, application schedule, listing schedule, etc., at a glance.
• Key Check Points:Demand forecasting competition rate, IPO price band, mandatory holding agreement, and the amount of tradable shares on the listing day, etc.

Key Indicators for IPO Investment Decisions

• Institutional Demand Forecasting Competition Rate: The higher the better, but the size of the application funds should also be considered.
• IPO Price: The closer it is to the upper end of the band, the higher the expectations, but it is important to keep in mind that the discount rate decreases.
• Mandatory Holding Agreement: This indicator shows the long-term investment intentions of institutional investors, and the more, the more stable it is.
• Tradable Shares on Listing Day: The fewer, the higher the possibility of a price increase.
• Secondary Offering: The less, the higher the company's growth potential.

IPO Application Process

🔗 IPO Application Process and Application Method

• Securities Account Opening: You need to open a securities account with the IPO underwriter.
• Application: Select the number of applications through the securities company's MTS (Mobile Trading System) and deposit the application margin.
• Equal Allocation vs. Proportional Allocation: Small investors use equal allocation, while large investors use proportional allocation.

Post-IPO Management

• Opening Price Sale vs. Long-Term Investment: If you want short-term profits, consider selling at the opening price; if you expect long-term growth, consider long-term investment.
• Stock Price Trend Analysis: Continuously monitor the stock price trend after listing to decide on additional purchases or sales.

Conclusion

IPO investment is an attractive investment method that can aim for high returns, but it is necessary to approach it cautiously, considering the high volatility. Based on the information provided in this guide, we hope you will make a thorough analysis and plan to achieve successful IPO investment.

FAQ (Frequently Asked Questions)

• How much money do I need to invest in IPOs?
  • It varies depending on the minimum application unit and the IPO price, but generally, small investments are also possible.
• Isn't IPO investment risky?
  • Due to high volatility, there is a possibility of losses. You should invest carefully based on sufficient information.
• Where can I get information about IPOs?
  • You can obtain information through various channels such as Peanuts, IPO Stock, and securities company research reports.