When a 'buy' goes bad, who is in the wrong?

MANY retail investors have snagged good returns from Initial Public Offerings (IPOs) of shares on the Singapore Exchange (SGX). They continue to do so today. However, there have been IPOs by Singapore-based companies, technology startups and companies with operations outside of Singapore that did not do as well after the gong thatsignals the start of trading of the newly listed shares on SGX.

While no investor wants to lose money, investors can generally accept less-than-satisfactory performance due to market factors. After all, applying for IPOs means accepting the risk associated with equities - there is no guarantee of positive returns.

However, what investors cannot accept is lack of diligence and reasonable basis in preparing the usually thick offer document called the IPO prospectus, on which investors base their decision to apply, or not apply, for the new issue.