Why I’m skipping the LeadDesk IPO

A SaaS company LeadDesk is currently IPOing to the Helsinki First North but I won’t invest in the IPO.

A SaaS company LeadDesk is currently IPOing to the Helsinki First North but I won’t invest in the IPO. 

Wow. It’s been over a year since I last wrote to the blog. I’m struggling to find time to write after all the private and work life stuff. I’ll need to think about how to overcome this “tyranny of the urgent”.

I’d really like to invest in SaaS companies. Especially as I’m remembering a similar SaaS company Admicom’s recent IPO and subsequent magnificent growth.

But the offering isn’t desirable enough, at least for the price. Fellow blogger Rahamiäswrote a good blog on the IPO and criticized the pricing, so I won’t repeat the same things, but the IPO isn’t cheap.

The company is only growing 20% which for a blue chip would be pop-the-dom-perignons-level of achievement, but for a small SaaS startup is actually quite a low number in my opinion. Also, they have started to make a profit, which I also consider a bad as they should still be focusing on investing in growth. Inderes is estimating an 18% discount in the IPO price but their estimates haven’t been quite accurate recently and I'm not believing that number.

But my main reason for staying on the sidelines for the LeadDesk IPO is the sentiment. Looking at Kauppalehti message board, Inderes message board or Sijoitustietomessage board, I see no enthusiasm or buzz for the IPO. That usually doesn’t promise good things to come, I believe the market will open under the IPO price for LeadDesk unfortunately.