Effects Of Investment Banks Participation In Initial Public Offering In Nigeria

Abstract

The success of intermediary institutions that make public financing accessible is a key factor in the development of capital markets in emerging economies. Investment banks are essential in Nigeria in the structuring, underwriting, and management of Initial Public Offerings, which are a major way for businesses to raise long-term capital. This study examined the effects of investment banks in initial public offer in Nigeria. A case study research design was adopted with focus on Fidelity Bank’s prospectus. Data were collected from secondary sources Fidelity Bank’s IPO Prospectus, Annual Reports of Fidelity Bank 2018-2025. The study adopted content analysis as the primary method of data analysis, given its qualitative and casebased approach. Findings of the study revealed that investment banks have substantial effect on the success of Initial Public Offerings (IPOs) in Nigeria. The study recommended that regulatory authorities should establish a performance-based accreditation system for investment banks, establish a dedicated Capital Market Stabilization and Support Fund (CMSSF) to assist investment banks in cushioning macroeconomic shocks during IPO structuring phases and provide subsidies for offer-related costs.