The first rule of IPOs – and how Kromek broke it

When floating a company on the stock market, it's vital to make sure you can keep the promises you make, says David Thornton.

First impressions matter. When you're introduced to someone new, you form a view of them based on all sorts of signals appearance, body language, how they speak. Some of those cues might be a bit irrational, but we use our experience of people and life to form snap judgements.

The same applies to companies. So when a new company comes to the stock market through an initial public offering (IPO), it's of vital importance they create the right image straight away. The very first impressions will be carefully managed through the roadshows and well-rehearsed investor meetings. But what really matters is that the company keeps the early promises made to the market.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.