dc.contributor.author | Cheluget, John K | |
dc.date.accessioned | 2013-05-15T07:23:41Z | |
dc.date.available | 2013-05-15T07:23:41Z | |
dc.date.issued | 2008 | |
dc.identifier.citation | A Management Research Project Report Submitted in Partial Fulfillment for the Requirements of the Degree of Masters of Business Administration (MBA), School Of Business, University Of Nairobi | en |
dc.identifier.uri | http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/22890 | |
dc.description.abstract | This study analyses the initial returns of initial public offerings (lPOs) 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 or 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
clay positive initial returns. See appendix S.
The study further found out that average subscription rate stands at 291.08% which
shows an increase of 62.30% as compared to 228.78% in a study by Maina (2004). The
highest subscription rate to elate is 800% achieved during Eveready IPO offer. The lowest
subscription rate was in Mumias IPO offer at 60%. The results also compares favorably
to findings by Summit Agarw a I (200]) in Hong Kong market when they found average
subscription rate of 90%.
The study also found out that Quadratic regression model best represents the nature or
relationship between initial return and subscription rate when compared with results
generated by linear regression model in the Kenyan IPO market. | en |
dc.language.iso | en | en |
dc.title | Investors demand for IPO's and first day performance:evidence from Nairobi stock exchange | en |
dc.type | Thesis | en |
local.publisher | Business Administration | en |