Can you profit from Asaleo Care Ltd, Monash IVF Group and Spotless Group Holdings Ltd?

The initial public offering (IPO) boom rolls on with a number of very large businesses recently listing on the ASX and plenty more on the way.

Some commentators are speculating that the market is starting to get a little weary of all the companies being offloaded by private equity with two proposed floats – Hirepool Group and Mount Adrah Gold – recently being withdrawn.

However for stocks which have listed so far there has been a pretty good success rate of immediate profits for investors. Take residential aged care facilities provider Japara Healthcare Ltd (ASX: JHC) for instance, which closed up over 25% on its first day of trade – nice gains for those lucky enough to get a stake in that IPO!

Not all floats have such a resounding first day success however, and this can create the opportunity for investors who didn’t receive a float allocation to purchase on-market.

Three stocks which recently listed are Asaleo Care Ltd (ASX: AHY), Monash IVF Group Ltd (ASX: MVF) and Spotless Group Holdings Ltd (ASX: SPO).

Asaleo is a manufacturer of personal hygiene products including well-known brands such as Sorbent and Libra. The float price was set at $1.65 per share and currently investors can purchase the stock on market at the same price.

Monash IVF is the second IVF provider to list on the ASX. Like its peer Virtus Health Ltd (ASX: VRT) the stock is commanding a lofty multiple, however unlike Virtus’ stellar IPO listing, which has seen the stock price rocket, Monash’s shares are currently selling for one cent under their float issue price of $1.85.

Spotless is best known for providing staffing services at large events such as football games at the MCG. Having only been taken private a few years ago some investors were wary of the company’s quick return to public life. As a result the IPO was ultimately priced at $1.60, representing the very bottom of the indicative price range. The stock has not traded below the issue price but at $1.69 investors who ‘missed out’ still have the opportunity to purchase at only a very small premium.

We've found better value elsewhere!

While Monash IVF could be a stock for your watch list, all three of these IPOs look very fully priced with little upside. It's very hard to find great investment ideas at present and it's all the more reason why I suggest you take a look at what could be the 'story stock' of 2014! Get The Motley Fool's #1 pick now in our newly updated investment report. It's yours FREE. Simply click here for your copy of "The Motley Fool's Top Stock for 2014."

Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

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