There’s a new IPO fever overtaking the markets.
Bloomberg reports that 1 in every 20 everyday investors in a certain country are trying to buy the latest batch of tech IPOs.
To date, they’ve wagered $163 billion (and counting) for a chance to own the next Amazon.com (NASDAQ:AMZN).
Since the supply of IPO shares are strictly limited, though, many investors are being forced to buy stock in the aftermarket, which is generating eye-popping returns.
Consider: China Literature Ltd (HK:0772) spiked 86% in its first day of trading, easily topping the first day gain for one of this year’s earlier “hot IPOs” – Snap Inc (NYSE:SNAP), which rose 44%.
While this red-hot market gets even hotter, there’s another IPO that caught my attention because of its decidedly unique characteristics.
To date, only 10,991 shares have been made available to a select group of 663 investors.
By my estimates, the company’s valuation could easily climb another 300% before anyone could consider it expensive.
That’s particularly true because it’s not hampered by a convoluted voting right structure, which ultimately doomed Snap.
Fair warning: While this IPO represents ownership in a “powerful decision-making engine” it could be the most unconventional and controversial IPO in history. But it could also be the most profitable IPO in history, too.