After Royal Mail and Twitter, when should investors target IPOs?

Neil Veitch, manager, SVM UK Opportunities fund You have to look at the context in which a company is coming to market. For example, the driving force behind Royal Mail's IPO was ideological; the government wanted to emphasise its belief in the power of the market. The shares were always going to fly because they were always going to be priced to. On the other side of the equation, you get some IPOs where the vendors are less incentivised to provide returns for investors, as opposed to maximising their own. That tends to translate into projections at IPO that can be unrealistic. In ...