There are many and diverse surprises that equities have in store for us for this new year. Although one of the most anticipated by small and medium investors is the one that has to do with the companies that are going to to land on the stock exchanges. They always have a very special attraction to open positions and the savings can be made profitable. Traditionally these corporate movements They have been very profitable for the users who have come. With yields above 10% in most cases. And how could it be otherwise, in 2018 these movements will also be present in the financial markets.
One of the operations that is arousing the greatest expectations among investors is the one whose reference source is Spotify. Because in effect, it is about to complete its IPO. The process is well advanced as the music streaming platform You have already submitted all the necessary documentation to the United States Securities Commission. With the intention that a few weeks it will be in a position to be listed on New York equities. It will be, without a doubt, one of the most anticipated moments for stock market users. Although for now, there will be no choice but to go to the other side of the Atlantic to open positions in this new value.
The intention of the company is to start trading in the first quarter of the year. But with a caveat that is very important to take into account at this time. It is none other than that the operation will be carried out without having to resort to a public offer of sale (OPV). This action will have a double effect. On the one hand, it may hurt investors who want to open positions because their prices may be less competitive than through an IPO. While on the contrary, it will mean cost savings for companies. Fundamentally linked to commissions to investment banks.
Spotify encourages other companies
This performance of the streaming music platform can have a knock-on effect on other companies that want to take this same path. Among them, a good number of companies from the new technologies or with an intense relationship with them stand out. It is the specific case of Uber which is also considering going public this year. Although it is the Chinese index where the greatest surprises will occur in this regard. With the landing of new stock market proposals that will land on its main equity indices. In what will be formed as a new business opportunity for savers.
Spotify's determination to make its way to the stock market may encourage other similar companies to emulate its example. There is no doubt that it will be a new incentive for you to resume your investments from now on. In particular, for some of these operations they can be very profitable for your interests. Forever depending on the price in which their actions start. It will be one of the most important keys for these operations to be successful or not among investors. As has happened in previous years with Spanish equities.
IPO in the Spanish market
Among the possible IPOs in the coming months, there are several names that are on the agenda of financial agents. One of the most anticipated operations in the market is the one that would have as its protagonist Residential head, the rental housing Socimi that emerged from the merger of Merlin itself with Metrovacesa. In addition, it would be located in one of the sectors most prone lately to carry out this kind of operations. But also with a higher risk in them as a consequence of the high volatility generated by this line of business.
The banking sector will also be sensitive in 2018 to so-called IPOs. Through a long-awaited proposal by small and medium investors. It would be one of the most important savings banks of yesteryear, as is Unicaja. In this sense, it already has the permission of its shareholders to go public through a capital increase. In a business segment, such as banking, which has gone through serious problems during the past year. Not surprisingly, it will be one of your big problems to be listed on the equity markets from now on.
Other business opportunities
Another possible candidate for the floor is the global explosives giant Maxam. You could submit a public offer for sale this year. To the point that there are already many investors around the world who are already interested in this possible operation. Of course, it would not be the only one since other companies that are going through this circumstance. As for example, Volotea airline that already in 2015 wanted to carry out these movements in the financial markets. But that in the end he had to give up the attempt to integrate into the equity markets.
One of the best examples of this strategy is what happened recently with the More Mobile telecom, which has been one of the great surprises of the past year. With a revaluation above 50%. In which you should look if you want to obtain a price for your actions on the stock market applying this special investment strategy. In addition to the occasional surprise that will appear during this current year. You just have to be aware of the specialized media. Where some of these movements are detailed. You may already be interested in one of them to subscribe for the company's shares.
Strategies for trading in IPOs
The public offer of sale requires a very special operation on your part. Not only for enter and exit financial markets. If not, also because of the greater knowledge that you will have to contribute to understand the operations more easily. And why not, a broader financial culture will not hurt you to develop these movements in equities. It will be a very useful contribution that can help you optimize these offers that are presented every year on the stock market. And as a consequence of this, make your personal or family assets more profitable.
- In order for you to carry out these operations with greater success, you will have no choice but to import a series of performances that will be very practical in these special settings. As for example, the following that we expose below:
- You should check if the entry price is the most optimal. Because it may be more profitable for you to make purchases at market price. That is, once the shares have started trading on the equity markets. Therefore, you should analyze the operation very calmly.
- Not all public offers of sale are capable of being subscribed. Only those that are more favorable to interests of small and medium investors. In this sense, it is highly advisable that you be very selective when choosing the most profitable IPO of all. Never in an uncontrolled way.
- It is very common for this kind of stock market operations to have a upside potential very high. Normally under two digits if they are directed to the medium term in their permanence. You should not be in excessive hurry to sell the positions you have opened in any of the companies that have been the subject of these public offerings.
- Do not forget that some of these public offers of sale are enabled under a price that provides an important discount on its real value in the financial markets. These are more interesting to subscribe since you will be in a better disposition to generate profits when you finalize the operation.
Terms of permanence of IPOs
Another aspect that you should assess is what term of permanence these variable income operations should be directed to. They will depend on the conditions of the IPO, but usually you should not abandon positions too soon if you want to make the movement profitable with greater guarantees of success. And above all by setting goals that are completely achievable. Because surely, sooner or later, you will have a reward for this investment strategy.
Of course, not all the terms will always be the same, but your listing will dictate it to you when the time comes for your prices to be set. Not surprisingly, these offers give you a greater flexibility on what you should do with the purchased shares. Because they can even serve you to have them in very long terms if necessary. Always depending on the profile of small and medium investor that you contribute. It is a factor that you must count on from now on.
Either way, you cannot forget that there are more and more investors who use this system to make up their investment portfolio. From any approach in stock market operations. This may even be your case in the twelve months that you have ahead of you to develop the purchase of shares through public offers of sale.