When evaluating IPOs, retail investors should really resist Fomo

SINGAPORE’S initial public offering market has finally shown signs of life after several lean years, a welcome development since a healthy stock market needs a steady supply of new companies to broaden investor choice and replenish the listed universe.

However, investors should not ignore one uncomfortable statistic: Seven of the eight companies that have listed on the Singapore Exchange (SGX) this year are now trading below their offer prices.

Admittedly, several have been listed for only a few months, so it would be premature to judge their long-term prospects purely on what may well be short-term underperformance.