Determinants of Initial Public Offering of Stocks, Case of Egypt (1998-2008)

Mahmoud Otaify


The objective of the study is to identify the determinants of Initial Public Offering in Egypt over the period from 1998 to 2008. The main question of the study is why there is a fluctuation in the number of Egyptian Private Companies that have IPOs? The study depends on the ex-ante and expost analysis of the IPO determinants and finds that the main objective of the going public is to finance growth while overcoming financing constraints is the main motive of the private firms to choose the going public option in order to achieve the growth objective. Conversely, the study finds that private companies are more likely to stay private because of their dependence on debt financing as well as the increased cost of information production.