Which is better between buying shares in the initial public offering or waiting for trading afterwards?

Initial public offering is the sale of a company’s shares to the public for the first time, and some may rush to participate in initial public offerings as an attempt to grab the stock at an appropriate price. Sometimes the stock price rises immediately after its listing on the stock exchange, but the stock’s rise with the beginning of trading is not a rule, as the stock may fall  With the beginning of trading or after a period of it, there are important points that the investor should know before turning to public offerings to avoid many risks.

 first :

Investigate and understand the company’s motives and know the real reasons behind the subscription. Is the company subscribing in order to pay the company debts or to expand in the market or to implement an acquisition plan, and all of these things have important implications that are reflected in the future of the stock.

 secondly :

The need to realize that most initial public offering usually only take place when the market is in an upward direction, because companies want to take advantage of the situation of the rise, and collect the largest amount of money by increasing the value of the stock, and many companies are keen that their financial statements appear in the best picture in the year or two.  Ex-subscription date.

 Third :

The best way to predict the future performance of an initial public offering board of directors and its ability to direct and lead the company is by looking at the history of its members.

 Fourthly :

Before accepting any of the initial public offerings, get acquainted with the company's situation by making an effort to know the company's private status, the financial prospectuses it issued, and the fundraising rounds that it undertook.

 Fifth:

Read the prospectus from the initial public offering once or twice, and pay attention to the smallest piece of information, because it can lead you to an important conclusion that affects your decision, and if you can't do that, save your money and invest in already listed companies, which you can evaluate their performance.

 Sixthly :

Postponing the purchase of shares until after the subscription may be better, especially since the investor has only a limited time to get to know and gather information about the company being offered for subscription. Avoid following an enthusiastic market to participate in an IPO.  Only because you have reasonable grounds to believe that it is a good investment, so as not to be surprised by a sharp drop in price.

Finally, I hope you will benefit from this article