Investing in HRNetGroup IPO: Too Close For Comfort😳

Dear reader,

I learn something new everytime I invest (and more importantly, divest) in an IPO.

Today was no different 🤔

As the markets started moving to the clarion call of the stock market’s opening bell (hypothetically), I watched as my allotted 4,000 shares of HRNetGroup started trading in the markets.

While due diligence had shown that the company’s financials and fundamentals were strong – 11 minutes past 9am…I wasn’t sure I quite liked what I saw.

95 cents to…94 cents?

I typed in those digits into the stock counter as fast as I could and hit the SELL button with a loud thwAck on my keyboard, heart pumping as adrenaline coursed through my veins.

A quick check on my screen and double-confirmation through my broker Tom was done –

and I heaved a sigh of relief.

I just sold 4,000 shares of HRNetGroup at $0.94!

Total profit from the trade?

Total invested: S$0.90 x 4,000 shares = S$3,600

Total profit: (S$0.94 x 4,000 shares) – S$3,600 -S$25 (brokerage fee) – $2 (bank admin fee) = S$133

Total ROI: 3.69%

Compared to my prior IPO trade in Sanli, this trade did not profit as well (69.1% vs. 3.69% ROI).

However, this was not unexpected despite IPO shares being 15x oversubscribed. I had forseen the offer price rising marginally due to the high volume of shares and heavy selling expected within opening day of the IPO launch, though if there’s one thing to take away from this trade, it would be:

Knowing when it’s just too close for comfort 😂!

Phews!

Live long and prosper,

Lynn

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