A long time ago I used a discretionary wealth manager, Brooks MacDonald Brooks Macdonald (LON:BRK). Despite giving them a cautious mandate, they put a load of my assets into the IPOs of Squarestone, an AIM listed Brazilian property developer than soon delisted, and Ncondezi Ncondezi Energy (LON:NCCL). Ncondezi Energy (LON:NCCL) promptly lost over 90% of its value, I fired Brooks Macdonald (LON:BRK) and started managing my investments myself. I suspect, by the way, that Brooks Macdonald (LON:BRK) received fees for putting private clients into the IPO, but am trying to get to the bottom of this.

However, this week's collapse of Footasylum (LON:FOOT) so soon after its IPO made me wonder who was the broker behind it, and I understand the answer is Liberum. Who, funnily enough, were behind both Squarestone and Ncondezi Energy (LON:NCCL). And it struck me that it would be helpful for investors to have a list of IPOs that have gone badly and the brokers who brought them to market.

It is not to say that every company floated by X or Y will be a scam, but if there is a pattern then it gives us another risk factor to be aware of before investing and may, if enough people pay attention, cause brokers to raise their game if they believe their reputation is being damaged by puffing up new issues.

So please use this thread as a resource and post any examples of IPOs that have disappointed and the brokers behind them

Unlock the rest of this Article in 15 seconds

or Unlock with your email

Already have an account?
Login here