Preparing for an IPO necessarily involves the complex task of determining the potential of IPO firms appropriately and thereby arriving at a value for them. Consequently, managers of IPO firms and other involved actors, such as potential investors, investment bankers and auditors, experience substantial uncertainty during the preparation phase (Pollock et al., 2008). IPOs differ from subsequent equity issues as there is considerable uncertainty about the market clearing price of the offering. Hence, the prospectus becomes a vital source of information about the firm (Mather et al., 2000 and Pollock et al., 2008).