Investor behavior towards IPOs in Kenya :
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Date
2020-10-25
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Publisher
Advances in Social Sciences Research Journal
Abstract
The period 2000-2013 witnessed a tremendous rise in investor
participation in IPOs in Kenya. A number of IPOs have resulted in over subscription. Outstanding cases include; Kenya-Re (334%), Kengen
(236%), Eveready (800%), Safaricom (363%), Mumias Sugar (200%),
Access Kenya (300%), Scan Group (520%) and Telkom (300%). The
purpose of this study was to empirically investigate factors influencing
investor behavior towards IPOs in Kenya. The study had, as its target
population people residing in Kenya who have previously participated
in any one or more of the following IPOs; Mumias Sugar, Safricom,
Kengen, Telkom, Eveready, Kenya- Re, Access Kenya, and Scan Group.
Simple Random Sampling was used to select a sample of respondents
from the target population. Factor Analysis was used to analyze data
collected from the respondents to generate understanding of the main
motivation to the hightened interest in IPOs by investors. A number of
factors thought to be driving investor’s interests towards initial public
offers in Kenya were identified. These factors were conveniently
categorized into three in order of significance, general state of the
economy, confidant’s opinions, and leading communication from
government sources.
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Keywords
Investor, behavior