Dear All,
How can one determine if the premium charged on IPO's are justified? On what basis do companies charge premium on IPO's?
Best regards,
Usha
Dear All,
How can one determine if the premium charged on IPO's are justified? On what basis do companies charge premium on IPO's?
Best regards,
Usha
One can determine the premium charged by IPO on the basis of the following:
1. The projected EPS as a percentage of invesment.
2. The price of shares of companies in the same product line.
3. The promoters' profile and the performances of their other ventures.
4. Reviews of nuetral experts if any.
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