Dear readers, Singapore stocks markets welcomed Food Innovators Holding just last week on SGX’s Catalist. Food Innovators Holdings IPO is Singapore’s second only IPO for the year-to-date.
At an offer price of 22 cents per share, Food Innovators currently trades at 23 cents per share. This represents around 4.55% upside for the stock since the trading debut.
I would reckon that the performance is still a decent performance for Singapore’s only second IPO for this year-to-date. I mean, at least the price of the stock is still above waters after almost one week of trading. If we could recall, Singapore Institute of Advanced Medicine Holdings stock (the 1 IPO for Singapore in 1st half this year), closed at S$0.19 (down 17.4% from IPO price of $0.23) on the 1st day of its trading on 16 Feb 2024.
From the price of S$0.19 on its 1st day of trading, Singapore Institute of Advanced Medicine Holdings stock has since declined to S$0.079 (as of 5 Jul 2024) or 65.7% discount from the IPO offer price of $0.23.
It is hence still early days for Food Innovators stock in terms of price trajectory. For investors who like to reference past similar stocks, Japan Food Holdings could be a reference point. Japan Foods Holdings listed on Singapore’s Catalist in 2009 and the stock currently trades at 33 cents which is 14 cents above its IPO price of $0.20.
Please do not get me wrong. I am neither saying that Food Innovators could follow a similar price trajectory like Japan Food Holdings in the years to come. And neither am I recommending Food Innovators. In fact, I do not like food businesses as they are competitive and niche food offerings like Japanese food will be even more niche.
What I am saying as the main gist of today’s post is that while the authorities will like to have more IPOs on SGX as part of the ways to rejuvenate the somewhat lacklustre local bourse, let us be reminded we should not be chasing a numbers game! Quality: performance of stocks after IPO debut matters after all too!