The study examines how dividends before a company goes public in China affect the success of Initial Public Offerings (IPOs). The researchers found that the size of the IPO, the time between subscription and listing, company size and experience, debt ratio, and dividend payouts all influence the likelihood of a low-priced IPO. Dividends before listing serve as a way for companies to communicate with the market, with more frequent dividends leading to less uncertainty and lower chances of a low-priced IPO. Companies that consistently paid dividends two to three years before listing had significantly fewer low-priced IPOs, while those that only paid dividends in the year before listing had significantly more low-priced IPOs. This suggests that companies use dividends and low-priced IPOs strategically to attract investors in the face of uncertainty.