Why did the initial supply of the stock market reach the funds? Trade news
According to Tejarat News, this year we witnessed 11 IPOs in the capital market, of which 8 IPOs were allocated to funds and the rest to ordinary shareholders. Assigning the initial supply to the funds was a surprise and protest for some shareholders, but why did these initial supplies reach the funds?
What initial releases did we have this year?
The combined transport company of Gehar Trabar Sirjan Minerals with the Hagar symbol was the first IPO that was allocated to the funds. The second initial offering of Khomein’s Ferrosilicon Company with the symbol of Ferrosil also reached the cash registers.
After the third offering of Asiatech Data Transfer Company with the symbol of Asiatek, followed by Dana Pharmaceutical Company with the symbol of Dedana and the fifth offering of Abik Cement with the symbol of SABIC, it reached the common shareholders of the market.
Ghadir iron company with the symbol of Faghdir, after the symbol of Kaizd, Tepsi and Shahroud steel with the symbol of Froud, was the ninth offering that funds arrived. Finally, during this week, two initial offerings of Goldiran Industries and Razi Broadcasting were carried out in the over-the-counter and reached the funds.
Why did the initial supply reach the funds?
Maysam Fadaei, the CEO of Farbours, said: This decision, that is, to assign the initial offering to the funds, was implemented for logical reasons and after expert reviews. Because before this, initial offerings with very small amounts, for example 30 to 50 thousand Tomans, were placed in the portfolio of small shareholders and were sometimes forgotten. As a result, space was provided for projects of shares by groups or individuals. In the following, we saw illogical and several hundred percent growth in these symbols.
Regarding the advantages of this issue, Fedayi said: With this, we will not have micro and small supplies in the market with 200% growth. On the other hand, when fund managers, as market experts, can discover the real price of a share, there will no longer be any doubt about unrealistic pricing in initial offerings.
Hedging risk in the stock market
On the other hand, some experts say that the lack of acceptance by the shareholders of the initial offering has caused these offerings to reach the funds.
On the other hand, some experts say that the sale of initial supply to funds reduces the market risk, and on the other hand, allocating initial supply to funds is a shocker for the capital market.
Of course, many shareholders objected to allocating the initial supply to the funds and still do. Some shareholders are of the opinion that the initial supply of profitable stocks will reach the funds, and others say that by allocating the initial supply to the funds, money will be injected into the stock market and eventually the direction of the market will change.
Therefore, it can be said that the lack of initial supply for shareholders can create an atmosphere of distrust in the capital market, and creating a balance in the market can also benefit investors.