Shiprocket IPO: Is the Valuation Worth Paying For?
Listen to the story
Shiprocket is a company that helps online shops send goods to customers. Now, Shiprocket wants to sell shares to the public. This is called an IPO. An IPO means a company sells shares for the first time.
Shiprocket's IPO is worth $170 million. A big company called Temasek supports Shiprocket. Temasek gives money to companies to help them grow.
Many people want to buy Shiprocket shares. The IPO is now fully subscribed. Subscribed means people have asked to buy all the shares.
On day two, 97% of the shares were subscribed. People also talk about the GMP. GMP means grey market price. It shows what price people expect after listing.
The GMP shows the share price could go up by 35% after listing. Listing is when a share starts trading on the stock market.
But some experts ask a question. Is the price of Shiprocket shares too high? This is called the valuation. Valuation means how much a company is worth.
People must think carefully before they subscribe. A high valuation can mean more risk for buyers.
Vocabulary6 words
- IPO
- when a company sells shares to the public for the first time
- Temasek
- a big company from Singapore that gives money to other companies
- subscribed
- when people ask to buy shares
- GMP
- a price that shows what people think shares will cost later
- listing
- when a share starts to trade on the stock market
- valuation
- how much money a company is worth
Quiz
Answer key
1. Send goods to customers 2. $170 million 3. True
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Shiprocket is a company that helps online shops send goods to customers. Now, Shiprocket wants to sell _____ to the public. This is called an _____.
Shiprocket's IPO is worth $170 _____. A big company called _____ supports Shiprocket.
Many people want to buy Shiprocket shares. The IPO is now fully _____.
On day two, 97% of the shares were subscribed. People also talk about the _____.
The GMP shows the share price could go up by 35% after _____.
But some experts ask a question. Is the price of Shiprocket shares too high? This is called the _____.