Pre-IPO stock options- Scam anot?

Sigh.. Recently, my friend told me that he bought a Pre-IPO stock in Singapore and he is convinced by the person talking in the seminar that he can earn a few times over. He says he trusts his friend who took him in and the institution.

Wow. seriously amazing. That's like 200%? 300%? 400%?

Meanwhile, these are the average returns of all other investments:
0.025%  savings account
1.3%  1-year FD
3.25% OCBC 360 Account
7.8%  S&P 500
15% Warren Buffet

Gua gua....

I have no idea what this Pre-IPO is about, what the seminar is about, who the person selling is so I can't say anything much.

BUT

1. Are you worth millions?
Sorry, if you are not worth millions I don't think you can get a pie of the Pre-IPO stock. Pre-IPOs are normally allocated to investment banks who are the underwriters and have lots of money. Unless you are the favorites of the investment banks (which means you are very very rich), you would perhaps be given a pie. Most people don't even have the connection to these investment banks.

2. Unpopular stock
I think it is very laughable when a company needs to set up a seminar to convince people to buy its Pre-IPO shares. Lol can you imagine Alibaba doing that last time? Do they need to? Or Facebook or twitter doing that? If they need to set up a seminar to convince people to buy, then sorry, it is probably a very lousy stock.

3. Too good to be true
High risk comes with high returns. Most investment vehicles can only have the average returns of at most 8% or a little higher if you are very good at it. It is very difficult and very unlikely to have abnormal returns consistently, like seriously can people use their brains to think????

Sigh. There have been so many investment scams being reported but why do people keeping falling and falling for them over and over again?

4. IPO may never materialize
There is no guarantee that the company will make it to the actual IPO or the actual price.

That's my input for this Pre-IPO don't know scam or not scam. I say, please, if you do not know what to invest or how to invest, I think it will be better if you just put your $ inside the ocbc 360 account.

Meanwhile, if any readers knows about this Pre-IPO thing, do enlighten me.

Thank you~