Institutional investors’ role in implementing book building: Views of market participants
The aim of this paper is to assess the views of market participants concerning the institutional investors’ role in implementing book-building pricing of IPOs as Nepal seeks to implement it. A total of 125 market participants were approached for data collection using a structured questionnaire that...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2024-10-01
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| Series: | Investment Management & Financial Innovations |
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| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/20877/IMFI_2024_04_Gurung.pdf |
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| author | Jas Bahadur Gurung Lija Boro Ramkrishna Chapagain |
| author_facet | Jas Bahadur Gurung Lija Boro Ramkrishna Chapagain |
| author_sort | Jas Bahadur Gurung |
| collection | DOAJ |
| description | The aim of this paper is to assess the views of market participants concerning the institutional investors’ role in implementing book-building pricing of IPOs as Nepal seeks to implement it. A total of 125 market participants were approached for data collection using a structured questionnaire that took a six-month period from January to June 2020. Descriptive and inferential statistics were employed to analyze the collected data. The study found that the role of institutional investors in the prevailing stock market is brutally meager because of the restrained regulatory provisions. Market participants opined that institutional investors play a vital role in developing the stock market and executing book building. Implementation of book building demands a rigorous amendment in the existing regulations that allow institutional investors to enter and play in the market. A precise classification and definition of the potential roles of institutional investors are essential so that the application of the building pricing mechanism could be expected to be more effective. Market participants believed that the active participation of institutional investors will help lure manufacturing and real sector companies, trading houses and hotels into the capital market for public offerings. Issue managers, portfolio managers, share registrars, and stockbrokers agree that the role of institutional investors is inevitable in implementing book-building pricing. |
| format | Article |
| id | doaj-art-8166ee26f5994c5f8fd331485dadce73 |
| institution | Kabale University |
| issn | 1810-4967 1812-9358 |
| language | English |
| publishDate | 2024-10-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Investment Management & Financial Innovations |
| spelling | doaj-art-8166ee26f5994c5f8fd331485dadce732025-02-02T23:18:39ZengLLC "CPC "Business Perspectives"Investment Management & Financial Innovations1810-49671812-93582024-10-0121410411510.21511/imfi.21(4).2024.0920877Institutional investors’ role in implementing book building: Views of market participantsJas Bahadur Gurung0https://orcid.org/0000-0002-2783-7690Lija Boro1https://orcid.org/0009-0009-0000-2384Ramkrishna Chapagain2https://orcid.org/0000-0002-5701-6500Assistant Professor and PhD Scholar, Tribhuvan University, Department of Finance, Faculty of Management, Prithvi Narayan Campus, NepalResearch Scholar, Department of Commerce, Delhi School of Economics, University of Delhi, IndiaAssistant Professor, Pokhara University, School of Business, NepalThe aim of this paper is to assess the views of market participants concerning the institutional investors’ role in implementing book-building pricing of IPOs as Nepal seeks to implement it. A total of 125 market participants were approached for data collection using a structured questionnaire that took a six-month period from January to June 2020. Descriptive and inferential statistics were employed to analyze the collected data. The study found that the role of institutional investors in the prevailing stock market is brutally meager because of the restrained regulatory provisions. Market participants opined that institutional investors play a vital role in developing the stock market and executing book building. Implementation of book building demands a rigorous amendment in the existing regulations that allow institutional investors to enter and play in the market. A precise classification and definition of the potential roles of institutional investors are essential so that the application of the building pricing mechanism could be expected to be more effective. Market participants believed that the active participation of institutional investors will help lure manufacturing and real sector companies, trading houses and hotels into the capital market for public offerings. Issue managers, portfolio managers, share registrars, and stockbrokers agree that the role of institutional investors is inevitable in implementing book-building pricing.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/20877/IMFI_2024_04_Gurung.pdfindication of interestinformed decisionreal sectorroadshowsunderwriter |
| spellingShingle | Jas Bahadur Gurung Lija Boro Ramkrishna Chapagain Institutional investors’ role in implementing book building: Views of market participants Investment Management & Financial Innovations indication of interest informed decision real sector roadshows underwriter |
| title | Institutional investors’ role in implementing book building: Views of market participants |
| title_full | Institutional investors’ role in implementing book building: Views of market participants |
| title_fullStr | Institutional investors’ role in implementing book building: Views of market participants |
| title_full_unstemmed | Institutional investors’ role in implementing book building: Views of market participants |
| title_short | Institutional investors’ role in implementing book building: Views of market participants |
| title_sort | institutional investors role in implementing book building views of market participants |
| topic | indication of interest informed decision real sector roadshows underwriter |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/20877/IMFI_2024_04_Gurung.pdf |
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