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22 February 2025
By Maynard Paton
“It’s Probably Overpriced“
IPOs have suffered badly during the last few years.
Buoyant markets encouraged lots of companies to go public at optimistic valuations…
…only for economic conditions to turn and valuations to quickly deflate.
ShareScope lists 225 shares that joined the stock market since the start of 2020, of which 168 (75%) currently trade below their flotation price — including 66 that have lost 80% or more of their value.
But could the flotation carnage now be hiding good buying opportunities?
I have devised a new ShareScope screen to search among the IPO rubble, seeking companies that have:
- Floated since the start of 2020;
- A market cap of more than £50 million;
- Net cash (i.e. net borrowings excluding IFRS 16 finance leases of less than zero);
- A positive operating margin (i.e. are profitable);
- Director holdings of 10% or more, and;
- A GBP-denominated share price.
ShareScope returned 11 matches, and I selected BIG Technologies because of its remarkable 51% operating margin and hefty 49% post-IPO share-price dive.
Let’s take a closer look.
Read my full BIG TECHNOLOGIES article for ShareScope >>Maynard Paton
