Do Investors in the Financial and Technology Sectors React Differently to IPOs Underpricing, as Reflected by Post-Listing Trading Volume and Volatility, While Controlling for Prevailing Interest Rate Conditions?

This paper investigates whether responses of investors to Initial Public Offerings (IPOs) are systematically different between the technology and financial sectors. Applying a comparative case study of six prominent IPOs from the post-2020 market, the paper explores post-listing trading volume and price volatility after the underpricing and interest rate effects have been controlled for. The results suggest definite bifurcation in investor attitude. IPOs from the financial sector were recorded with significantly higher underpricing (avg. 83.3%), which triggered increased post-listing trading volume and price instability. Technology sector IPOs exhibited more moderate trading tendencies, whose aftermarket performance appeared to be influenced more by intra-sector consistency. It concludes that investor demand in IPO markets is not uniform but is actually dictated by industry-based stories and risk preferences.