Group plc - MADE - Share chat

With this morning’s news of preparing to float on the LSE valued at 775.3m. Shares to be sold for 200p.

(Source: BBC

This would be a great addition to FT once live with real domestic and international growth potential.

I took receipt of 4 chairs from Made this morning and thought the very same thing. I’m keen to invest.

I’ve just seen Made now available and oh my I’m sure glad I dug get get in at 200p a pop

Whoa, just looked at the chart. That’s even worse than Wise. I wonder if many companies nowadays are using the stock market as a way to offload their losses to shareholders.

I don’t understand what you mean - please can can you explain? What you buy and sell on the exchange doesn’t affect the company directly**. The money that was put into the company was when it IPOed and then too only the strike price not any first day gain etc.

It is true that the company can buy back shares at a lower price and liquidate them - again that is not offloading a loss***.

** The present price may adversely affect the companies ability to, for example, borrow money but that is something different.

*** I don’t know anything about the financials of MADE. However, Wise is a profitable company.

Usually in an IPO, initial shareholders sell some of their shares to recoup their investment (founders and seed-investors). Hence, with a high IPO price, they get a good deal, while people who buy at the IPO get stuck with a falling knive. Sometimes it goes well, sometimes it goes bad. Certainly the IPOs of the last year have been negative.

Regarding WISE: they started at 800p and went down to less than 300. I see that they are going up again now but still a long way of the IPO.

r.e. Wise I am not questioning whether the share price has gone down or not. I was only seeking clarification about the statement

It is true that with a high IPO price the pre IPO investors who risked their money win more**. That is not the same as your original claim about loss offloading - which is questionable. I fully sympathise with the frustration that people who buy shares on the exchange may lose money and a lot of it. Buying shares at IPO time or otherwise always involves a risk.

** (and they win even more if the price goes above the strike price and they haven’t sold at the strike price)