Investors Response to Initial Public Offering in Nepal

Timsina, Jhuma

Investors Response to Initial Public Offering in Nepal

Publisher

Central Department of Management

Abstract

This paper concerns themes with Initial Public Offerings (IPOs) in the Nepalese capital market. The tremendous increase in the public companies has also embraced IPOs in the same pace. Initial public offering is the most phenomenal event of an organization. IPOs are the normally issued by small and new companies who are in need of capita to expand their business, but sometimes large companies also issue them for publictrading.IPOs is found to be oversubscribed specially in the case of companies in the finance sector. The paper deals with the IPOs and public awareness in IPOs. The main aim of this study is to analyze level of awareness, to identify the public response towards the IPOof financial and non financial sector in Nepalese market. The study aimed to evaluate the investors' motive to investment. This study is based on primary data through structured questionnaire, personally distributed to the investors. Data are analyzed by using appropriate statistical tools and percentage analysis as well as describe by tables. Descriptive research design has been used to collect the opinions and to know about response of respondents by convenience sampling technique. The main conclusion of this study is there is awareness of the investors towards on IPO. Specially, commercial banks, finance company, and hydropower are more preferable. And there is also relationship between awareness and investment decision of investor.