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Abstract
IPO pricing and information asymmetry is a thought provoking concept that begs for further prodding just to get an insight into how they affect the most vulnerable group in the capital market, the retail investors. These are the most uninformed investors who face greater risk in the Initial Public Offering (IPO). What appears to be great gains at the opening of the IPOs quickly changes into loss when the market corrects itself from the underpricing. Institutional investors are aware about the share price trends. Hence they offloaded their shares and made their profits. In the end, the retail investors are left with shares whose prices plummet below the purchase price. This paper has delved into the effect of IPO mispricing on the retail investors.