The aim of the assessment is to detect efficiency of the IPOs that has been conducted in Australia over the period of time. The assessment evaluates the overall returns that have been generated by the initial public offering during the first day of trade. In addition, this relevant comparison of the first day return is relatively conducted to identify the levels of underpricing which is present within the initial public offerings of organization. Further evaluation has been conducted on the overall value of cost of capital that has already changed for the organizations after the initial public offering. Lastly, adequate measures are taken to provide information about the IPO activity in Australia and relevant returns that has been provided by the three selected IPO during five financial years.