When it comes to investing, both avenues carry some degree of risk.
However, unlike listed businesses that have been under public and regulators' scrutiny, most IPOs are untested business models. Further, IPOs are usually priced at exorbitant valuations that do not offer enough margin of safety.
In our view, one should wait for track record post listing and enter well performing businesses at reasonable valuations.
Due diligence and margin of safety are must in our view, whether it's an IPO or listed stocks one wants to invest in.