IJSSE - International Journal of Social Sciences and Entrepreneurship Upcoming Journals: International Journal of Innovation and Management (IJIM), International Journal of Engineering and Architecture (IJEA) & International Journal of Science and Agriculture | IJAE, IJEF & IJHRP Call for Papers - Forthcoming Issue (Decemer 2014). Submission deadline: 25th December 2014 |

No images

UserInfo


54.161.66.30
United States United States
Your Time

User Statistics Info
IJSSE is one of the leading International Journals by User Statistics!

Login Form



IJSSE Newsletter Form
Full Names *
E-mail Address: *
Country *
PDF Print E-mail

AN ANALYSIS OF A SUCCESSFUL INITIAL PUBLIC OFFERING (IPO) AMONG NAIROBI SECURITY EXCHANGE LISTED COMPANIES


Marangu Francis Kaaria

Masters Student, Jomo Kenyatta University of Agriculture and Technology, Kenya

Dr. Makori Moronge

Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya


ABSTRACT

The Nairobi Security Exchange is an ideal place for this research on analysis of a successful initial public offering. The Nairobi Security Exchange is an ideal avenue for this research because it provides a platform where investment banks and licensed stock brokers acting on behalf of their clients buy and sell shares. The study was carried out to analyze factors affecting a successful initial public offer at the NSE and find out whether to agree with previous findings that a successful IPO is significantly influenced by the cost of going public, pricing of the IPO, Governance issues and the timing of an IPO. The study was built upon major theoretical streams: Window of Opportunity theory, Impresario or Fads hypothesis, Divergence of opinion theory and Entrenchment theory and contextualize them to successful IPO perspective. The research design method used was a descriptive survey. The target population were companies listed at the NSE. The target population for this study were all the 56 listed firms. The target population for this study were all the 56 listed firms. Since this research was census, no sampling technique was used to select the sample. The study found out that the pricing factors that affected the firms going public were offer price, efficient capital market and subsequent market performance. Further, governance issues also affected the success of IPO in Kenya and also for the success of IPOs, timing was very important. From the study, it is concluded that listing costs factors such as auditors’ costs and transfer of cost to the investors were the main factors that influenced the IPO success.  The study recommends that for the firms to succeed in IPOs, they should take into consideration the timing, governance issues, price and the cost to be incurred before the firm goes for IPO. The study also recommends that the firms should also consider other factors such as the economic situation, previous IPOs performance, advertisement, profits of the firm and also their reputation for the IPO to be successful.


Full Text PDF Format

 
Banner
Publication Disclaimer: The accountability of the article published in IJSSE journals is entirely of the author(s) concerned and not of the publisher/editor. The view expressed in the articles of any IJSSE journal is those of the contributors, and it does not essentially correspond to the views of the publisher/editor. It is responsibility of the authors to seek copyright clearance for any part of the content of the articles. The publisher/editor of IJSSE journals is not liable for errors or any consequences arising from the exercise of information contained in it.
Free counters!
IJSSE - International Journal of Social Sciences and Entrepreneurship | Copyright 2013 | All Rights Reserved  <