MENU

How these IPOs fared 1 week later

The first week of a company being on the ASX boards can be very telling. The market doesn’t get any new information until the next quarterly or half-year result, so we can get a sense of the market sentiment from how the share does in its first week.

Of course, how the market treats a share doesn’t ultimately mean anything. But, it can be interesting nonetheless.

Here are how the latest ASX shares fared:

Prospa Group Limited (ASX: PGL)

The only share that was scheduled to list last week was Prospa Group.

Prospa Group claims to be Australia’s number one online lender to small businesses, with its key selling point being that it can deliver fast finance solutions.

The company offers business loans of between $5,000 to $250,000. No security is needed to access up to $100,000. According to Prospa, the application takes just 10 minutes, you can get same day approval and funding is possible in 24 hours. It looks at the health of the business to determine credit worthiness.

If you’re a keen follower of financial news you will have seen that the Prospa float was pulled 15 minutes before it was due to start trading.

Apparently ASIC sent a letter to Prospa last Tuesday, it is speculated by those in-the-know that its standard form contracts allegedly contain unfair clauses in breach of consumer laws. However, ASIC didn’t make a request for the float to be delayed, nor raise concerns about the prospectus.

The company is looking at a revised schedule and will communicate to investors at the appropriate time, but at the time it was decided it was in the best interests of the company and new investors to delay the IPO.

Foolish takeaway

Some commentators have said that even though the interest rates offered by Prospa may seem high, of apparently above 40%, it’s better to go through a regulated business like Prospa than go to lenders who collect debts with baseball bats.

I imagine we will see Prospa try to list again sometime in the future. However, in my initial article I said I wouldn’t invest in Prospa and that remains the case.

Instead, I’d much rather invest in less-risky stocks like these exciting choices.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of ASX Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now