PUBLIC RESPONSE TO INITIAL PUBLIC OFFERING (IPO) IN NEPAL

Abstract

Investing in the stock market promotes capital mobilization and contributes to economic development. Stock investments begin in the main market with the acquisition of Initial Public Offerings (IPOs), followed by secondary market trading. Investors trade existing shares at market values on the Nepal Stock Exchange. Nepal sees a significant injection of cash through IPOs each year, indicating a strong preference for this market among Nepalese investors. This study, titled "Public Response to Initial Public Offerings (IPOs) in Nepal: A Case Study of Rupandehi District," seeks to gauge investor sentiments regarding IPOs. The study also aims to investigate the relationship between several characteristics such as quality management, company goodwill, company performance, company sector, and market information and IPO investment decisions. The study used correlation results to address the five factors. The Pearson Correlation coefficient was used to investigate the link between the five independent factors and the dependent variable (investment decision). At a 5% significance level, the results show a positive association between the five variables: quality management, company goodwill, company performance, company sector, and market information. The research focuses on primary data collected from 403 respondents in the Rupandehi area. The approach adopted was descriptive analysis using the Statistical Package for Social Sciences (SPSS), including statistical variables such as mean and standard deviation. Correlation and regression studies were also performed to investigate the relationships between variables and better understand the influence of various factors on investment decisions. Keywords: Initial Public Offerings (IPO), Investment Decision, Public Perceptions, Capital Market