Traders looking for the next winning IPO should seek carve-outs that make a clean break from their parent companies, according to a new study.
IPOs from carved-out businesses outperform when their parent company fully exits an ownership stake, compared to those in which parents keep a position after the listing. That’s according to a new study presented on Tuesday by accounting firm KPMG AG and The Edge Consulting Group — a research firm that focuses on spinoffs — to a group of fund managers.