Want to make some money in 2021? IPOs are luring investors, but the risks are huge

After “crashing” in March this year, the Australian share market is booming once more.

But within the stock market itself there is also a mini-boom occurring in initial public offerings, or IPOs.

Financial planners say their clients, sick of earnings next to nothing on their bank deposits, are handing over their cash to buy up these new stocks.

“I’d say the majority [want to invest in IPOs],” says James Gerrard, the founder of financialadvisor.com.au.

“Whether it be young or old, there is risk with IPOs, but with rising share markets and optimism going into 2021, clients of all ages are happy to roll the dice.”

A bumper year for listings

Companies looking to expand and to take advantage of investor interest are rushing to list, and so far…