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Private markets thrive amid dismal IPO performances

Bain & Co reports underperformance across the board for newer, publicly-listed companies

Published Fri, Mar 6, 2020 · 09:50 PM

Singapore

INVESTORS are redirecting their funds to the private space as newer, publicly listed companies consistently underperform their peers across all sectors, said Bain & Company in a report released on Friday.

Its recent analysis of all initial public offerings (IPOs) that stayed public from 2010 through 2014 showed that two-thirds of these companies underperformed their established peers, with a weighted annual average total shareholder return (TSR) of 0.4 per cent, far lower than the 8.4 per cent of the respective indices.

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