The OCBC Mid-Year Warning: Why New IPOs Face a 20% Growth Hurdle 🦖
The OCBC Mid-Year Warning: Why New IPOs Face a 20% Growth Hurdle 🦖
I thought OCBC’s warning was about weak IPOs, it is really about how strong the existing market has become after MAS pushed S$6.5b into Singapore equities. When secondary names get repriced upwards first, any new listing has to steal your CPF and SRS away from proven payers, not just tell a nice growth story. That is the part I do not think most income investors have clocked yet.
For a 55-year-old who still needs REIT distributions to top up CPF and SRS, the real tension is this, OCBC’s team is signalling that unless a new issuer can show at least 20% earnings growth, it probably does not deserve the same multiple as the stocks already in your retirement portfolio. That higher bar makes every dollar you shift from a seasoned REIT or industrial name into the next IPO a forensic question, not an excitement trade. Foundation Healthcare’s listing and OCBC’s own 15-pick list are my way of showing you what that new hurdle looks like in actual numbers, so you can decide whether your income exposure still clears your personal bar.
📺 YouTube: https://youtu.be/1C3Id3nOyTQ
📩 Substack: https://investingiguana.com/p/ocbc-says-the-ipo-bar-just-got-higher
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