Newly listed shares over the past year continue to under-perform shares in
general, the Curo Personal Finance Initial Public Offer (IPO) Index shows.
The IPO Index is 6,8 percent down since it was launched on August 11. The
Johannesburg Stock Exchange`s Small Cap Index has also lost ground, but to
a lesser extent, and is down 4,1 percent, while the All Share Index has
gained 3,7 percent and the Industrial Index 6,1 percent, over the same
period.
Jason Parker-Smith, of Curo Financial Services, says even the listings of
ERP.COM and Investment Solutions - two of the three successful listings
which have taken place on the JSE - and which have returned over 100
percent and 30 percent, could not influence the IPO Index.
The IPO index was launched to help you evaluate the performance of your
investments in newly-listed companies. The index includes all companies
that have listed over the past year.
New additions to the JSE`s financial services sector were Incentive
Holdings and Investment Solutions, and ERP.COM Holdings, listed in the
venture capital sector since August 27.
Incentive`s subsidiaries consists of securities which include
stockbroking, corporate finance, asset management, assurance, financial
services and joint ventures.
The share listed at 100 cents and has remained close to this price ever
since its listing on September 3.
Investment Solutions Holdings, which listed on September 30, has two main
subsidiaries - a multi-manager business and retirement funds business.
From its listing price of 220 cents, the share has managed to climb 34
percent, to around 295 cents.
ERP.COM Holdings listed on the venture capital market on September 16. The
company develops business information systems for their clients and was
very well received by the market. It is trading at 113 cents, which is a
126 percent premium to its listing price of 50 cents.