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QuestionsCategory: MiscellaneousLion-ocbc securities hang seng tech
Erik Tan asked 2 years ago

Dear Fifth Persons, 
Not to ask for any recommendations whether to buy or not, but I just hope to seek some opinions on what you think of the newly formed etf offered for IOP. Because there isn’t any price reference since this is new, I’m unsure if a price of 7. 75 HKD at the IOP is of fair value.
Best regards, 

1 Answers
Victor Chng answered 2 years ago

Hi Erik,
As mentioned, there are no price reference as it is a newly IPO, it is hard for us to value it and that is the reason why we don;t invest in IPO companies.
Alternatively, you can find out what is the PE that the ETF is trading when IPO. Compared the PE with the growth percentage of those company listed in the ETF. From there, you may get a rough idea on how expensive or cheap is the ETF.

Erik Tan replied 2 years ago

Thank you Victor :)