Tuesday, June 10, 2008

After IPO's the likely next craze

I understand there are many private placement opportunities currently going on a need to know basis. However it appears some companies are willing to come out in the open like this eastandard.net/mag/index.php?id=1143988067&catid=351 to give everybody a chance which I think is a better idea as it attracts diverse interest plus give an opportunity for exposure and scrutiny.

Recently, Transcentury were undertaking a private placement but now I understand they have opted for an IPO instead sometimes in 2009.

Probably amongst the tricks for a successful private placement like co-op bank etcetera is the exposure to a wider audience and letting it run for a longer period and setting it at an affordable price. Hopefully, those in the closet will heed this trick.

As exemplified by returns from Equity, co-op which participated in private placements the latter still is, could this be the next craze after the IPO’s?

Downside to some of the placements are that some are a higher risk, yet to be regulated by the sleepy CMA, getting the financial statements takes longer also with some, getting hold of, or disposing off the shares is a much longer process.

However, doing your research can mitigate against most of the shortcomings.

1 comment:

pesa tu said...

Looks like too much liquidity chasing a few opportunities.
I saw an Ad in yesterday's Nation calling the public to join a group that wants to be one of the Equity partners for Uchumi