High IPO valuations a critical issue

Areca Capital CEO and executive director Danny Wong Teck Meng says companies that intentionally misguide or mislead investors should face penalties. Investors who suffer significant losses should have the right to seek compensation through a straightforward arbitration process.

IT is important to be highly selective when participating in IPOs by taking a deep dive into the fundamentals of the companies, including examining their track record and evaluating their growth prospects.

Meeting with the management team, especially the founders and key decision-makers, is a crucial part of the process at Areca Capital.