Abstract: The main objective of any business is to maximize shareholders’ wealth therefore this study endeavored to find out whether Initial Public Offers (IPOs) actually help a firm to achieve this objective in the long run. This study thus sought to find out the long run performance of a company’s stock after it goes public. The study therefore looked at variables that show the performance of the stock in the long run such as share price, earnings per share and price earnings ratio of the stock. The study analyzed seven companies which went public between 2000 and 2006 using the Buy and Hold Abnormal Returns (BHAR) model. Observations were made on a yearly basis over six years to allow the researcher to analyze (BHAR) for the period of six years. The study drew data from balance sheets and the Income statements and information from the Nairobi Securities Exchange (NSE) on the companies’ earnings.