Grading of Initial Public Offerings (IPOs) is a service aimed at facilitating assessment of equity issues offered to the public. The Grade assigned to any individual IPO is a symbolic representation of rating agency’s assessment of “fundamentals” of the issuer concerned relative to other listed securities.

IPO Grades are assigned on a five-point point scale, where IPO Grade 5 indicates the highest grading and IPO Grade 1 indicates the lowest grading, i.e a higher score indicates stronger fundamentals. An IPO Grade is not an opinion on the price of the issue, pre- or post-listing.

IPO Grade 5: Strong fundamentals
IPO Grade 4: Above-average fundamentals
IPO Grade 3: Average fundamentals
IPO Grade 2: Below-average fundamentals
IPO Grade 1: Poor fundamentals