Lessons from Leong Hup’s lacklustre debut

Leong Hup International is one of the largest fully integrated producers of poultry, eggs and livestock feed in Southeast Asia.

INITIAL public offerings (IPOs) are supposed to perform fairly well, especially in the first few days or the first month.

When they do not do so, it begs the question if valuations were right when the company was listed, and if investors needed more convincing of the company’s ability to grow revenue and earnings in future.