Investors Demand for IPO?s and First Day Performance

Cheluget, John; Letting, Nicholas; Mohat, Edith

ISBN 10: 3659853259 / ISBN 13: 9783659853258

Published by LAP LAMBERT Academic Publishing, 2016

About this Item

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Seller Inventory # 407271424

Bibliographic Details

• Title: Investors Demand for IPO?s and First Day Performance
• Publisher: LAP LAMBERT Academic Publishing
• Publication Date: 2016
• Language: English
• ISBN 10: 3659853259
• ISBN 13: 9783659853258
• Binding: Soft cover
• Condition: New

About this title

Synopsis

This study analyses the initial returns of initial public offerings (IPOs) using a sample of companies listed in the Nairobi Stock Exchange during the period 1984 to 2008. It further relates the initial return to subscription rate using regression models to establish whether relationship exists and the nature of the relationship. The study provides one emerging market case of international evidence on performance of IPOs. The findings from the sampled IPO firms show an average initial return of 40.28% on the first day of trading in the secondary market. This represents 17.78% increase when compared with study by Maina (2004) when he found initial return of 22.57%. All this is consistent with other international research, which have on average also documented first day positive initial returns. See appendix 5. The study also found out that Quadratic regression model best represents the nature of relationship between initial return and subscription rate when compared with results generated by linear regression model in the Kenyan IPO market.

About the Author

Dr.John Cheluget is a Kenyan holding a PHD in Business Administration, Finance option from JKUAT,Kenya an MBA in Finance and a Bachelor of Commerce, both from the University of Nairobi, Kenya. He is a qualified accountant holding CPA-K certificate. John is currently a Lecturer at The Management University of Africa, MUA, Kenya, with 9 publications.