Why it is not so easy for a retail investor to make money in an IPO

Allotment could be low, and expected listing-day gains can quickly morph into losses if sentiment takes a turn for the worse

Action within the primary market is becoming more frenzied with each passing day. Ten initial public offerings (IPOs) have listed on the exchanges since the start of June. In an event last witnessed 14 years earlier, four IPOs opened for subscription on the same day (August 4) and were lapped up by investors within hours. The oversubscription numbers, ranging from 3.9 times to 93.4 times (since the start of June), are another pointer to the high investor appetite for debutant stocks. The final icing on the cake is the listing day gains, which have ranged from 5.1 per cent to