Ocado IPO: Don't touch it with a bargepole

Ocado's flotation is like something out of the dotcom boom: an over-valued, loss making company in a desperate call for cash. But it's a great lesson in what to look out for in new issues, say Bengt Saelensminde.

There's something you really need to know about Ocado's share offer. You won't see it in the press, as they're looking in all the wrong places. I mentioned that I was wary about this share offer last week. Now that I've had a good look at the prospectus I'm sure.

I'm not going to talk about the concerns voiced in the media over things like fierce online competition and the fragile sourcing agreement with Waitrose. That's not the big issue. What's really of concern is that this looks more like a last ditch attempt for the founders to get something out of the business.

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Bengt graduated from Reading University in 1994 and followed up with a master's degree in business economics.

 

He started stock market investing at the age of 13, and this eventually led to a job in the City of London in 1995. He started on a bond desk at Cantor Fitzgerald and ended up running a desk at stockbroker's Cazenove.

 

Bengt left the City in 2000 to start up his own import and beauty products business which he still runs today.