IPO - Accordia Golf Trust

Out of the blue my broker contacted me and asked whether I would like to subscribed some IPO shares of Accordia Golf Trust.  

I was quite surprised because my broker has never done that in the past and normally he never bothered with small investors like myself.  This was the first alarm bell.

I thought then that maybe the response for this particular IPO was just too lukewarm and they have many unsubscribed units.

I asked how many lots I can get and was told as many as I wished.  Second alarm bell rang and I declined and told him that I have no money to purchase.

The outcome was really true that the public offer was undersubscribed.  It was just approximately 0.7 times subscribed and it was such a long time since an IPO was undersubscribed.

The most likely scenario is Accordia Golf Trust will be a submarine when it starts trading.

I think many people will probably get burnt, especially those who applied 50-100 lots and thinking that they will be allocated only a few lots.