Oversubscribed Doesn't Mean Overperforming: What SG's Latest IPOs Are Actually Teaching Investors 🦖
Oversubscribed Doesn't Mean Overperforming: What SG's Latest IPOs Are Actually Teaching Investors 🦖
🔍 The Angle
I cannot shake the fact that Foundation Healthcare was 9.4 times oversubscribed on the public tranche, then closed 7.9 percent below its IPO price on day one. JustCo drew in big cornerstone names at S$0.94, then the market quietly took it down into the 60s. When the order book looks perfect but the first weeks of trading look like this, the message is not about demand, it is about how fragile post listing conviction really is.
💰 What It Means For You
If you are using CPF or SRS to chase “oversubscribed” IPOs, you are effectively betting that marketing demand will translate into stable secondary yields, and the last two listings say that bet is not automatic. A 6 percent targeted yield for AirTrunk sounds generous on paper, but Foundation Healthcare and JustCo show how quickly prices can slip under offer once flipping and real liquidity kick in. Forensic work starts after the prospectus and roadshow, when the stabilising bid steps back and you find out who is still holding.
📺 YouTube: https://youtu.be/dG-BKi7CUHI
📩 Substack: https://investingiguana.com/p/oversubscribed-doesnt-mean-overperforming
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