Bought IPO shares? Why you shouldn’t rush to sell even if they aren’t gaining much

Bought IPO shares? Why you shouldn’t rush to sell even if they aren’t gaining much

Dubai: With an increase in investors applying for an IPO nowadays, UAE-based market experts have been assessing how there has not only been an increased awareness about how an initial public offering (IPO) works, but also how it can help an investor plan his or her long-term financial goals.

Both in the UAE and elsewhere in the GCC, shares in companies that are looking to newly list and publicly trade on the stock market are now increasingly being offered to investors through a process referred to as an IPO. As a result, a record number of investors have been investing in them.

“If you decide to invest a portion of your savings into a company that has just decided to publicly list its shares on the stock market, you could make your money reap enormous gains,” said Brody Dunn, an investment manager at a UAE-based asset advisory firm. “But that’s not without its risks.

“As a company issuing an IPO lacks a track record of operating publicly, investors buying into them should be aware that with IPOs, you can’t be hasty to sell. While timely decisions bring you good returns over a period of time, that period maybe short or