Initial Public Offerings or IPOs are a convenient way for a private company to go public by offering its shares to the public. IPOs provide a great investment opportunity to investors as they can gain substantial returns by grabbing shares of growth-oriented companies at bargain prices. The Australian Stock Exchange (ASX) initially saw a considerable dip in the IPOs amid the COVID-19 pandemic.
Many would answer this as a YES; however, investors need to keep in mind the timing and price of IPOs as a critical factor prior to an investment decision. Besides, investors should use valuation models such as discounted cash flows and valuation multiples versus competitors.