Vol. 3, Issue 3, Part M (2017)

Abstract
Initial public offerings (IPOs) generate enormous curiosity both in investors and researchers in finance, for varied reasons. Investors, being true to their interests, would look at an IPO as an instrument to increase their returns, on the other hand researcher look at each IPO to determine if it is following the established pattern or is it defying. Research on IPOs begun in early 1980s and since then researchers could not comprehend fully and explain the IPO firm’s stock market performance, including its valuation.