One potential benefit of IPOs is the opportunity to get in early on a company entering the public market. When a business goes public, it often does so to raise capital for expansion, and this transition can sometimes be accompanied by strong growth plans or rising visibility. Being part of the IPO phase may allow access to shares before the broader market drives the price up. However, it's important to recognise that early participation doesn’t always mean guaranteed performance. IPOs can be highly volatile in their early days, and the initial pricing may not reflect the company's long-term value.

On the flip side, IPOs can also present challenges. One of the main concerns is the limited historical data available for public evaluation. Companies may be entering the public market during a period of strong momentum, but without a proven track record of operating as a listed entity, it's difficult to predict how they’ll perform under market scrutiny. Moreover, the buzz around an IPO can sometimes lead to inflated expectations, which may not align with the company’s actual fundamentals. For those exploring IPO opportunities, balancing enthusiasm with thoughtful analysis is often key.