Unfortunately, A3D set the "expectation" bar too high for IPOs that followed. CFO and DTZ were very good IPOs/RTOs but they were made to look "relatively" disappointing to a lot of investors who expected an A3D type performance.
There are lots of ingredients that make a great IPO. A few critical ingredients are:
1. Has to be a good story. The market needs to recognise the upside potential.
2. The seed shares need to be allocated to proven long term investors. Too many flippers and sentiment is negative from Day 1.
3. The pricing is critical. It needs to ensure ALL parties are looked after...ie. founders, seed investors and IPO investors.
4. The register needs to be tight. Therefore, allocations for the prospectus raising need to be carefully managed. The lead manager really needs to ensure the bigger lines of stock wont be coming out on to the market early and they need to also ensure they have the firepower from investors to mop up any big selling that may come on to market.
Alto Capital (Perth) executed the perfect blueprint for an IPO with A3D. Whether or not A3D ultimately succeeds or fails is irrelevant in terms of how Alto managed the IPO process. It was simply first class. They did their job.
I don't believe any IPO, apart from A3D, from 2016 and so far in 2017 has ticked ALL four boxes.
