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Factors influencing the direct costs of property trust IPOs

Dimovski, Bill and Brooks, Robert 2007, Factors influencing the direct costs of property trust IPOs, Pacific rim property research journal, vol. 13, no. 1, pp. 2-15.

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Title Factors influencing the direct costs of property trust IPOs
Author(s) Dimovski, Bill
Brooks, Robert
Journal name Pacific rim property research journal
Volume number 13
Issue number 1
Start page 2
End page 15
Publisher Faculty of Design, Architecture and Building, University of Technology, Sydney
Place of publication Ultimo, N.S.W.
Publication date 2007
ISSN 1444-5921
Keyword(s) IPOs
property trusts
costs of capital raising
initial public offerings
Summary Underwriting, legal, accounting and valuation costs average around 3.3%, 0.39%, 0.23% and 0.12% of proceeds raised and are substantial costs to property trust initial public offering (IPO) issuers. As such, identifYing factors that influence these costs is important. This paper investigates factors influencing these costs as well as the total direct costs of raising equity capital by property trust IPOs in Australia from 1994 to 2004. The results suggest clear economies of scale in direct costs. In addition, IPOs that employ more debt are likely to have higher capital raising costs while those that have proportionally higher net asset values and offer stapled securities (and likely to be engaged in property development activities) have lower capital raising costs.
Notes Reproduced with the kind permission of the copyright owner
Language eng
Field of Research 150201 Finance
HERDC Research category C1 Refereed article in a scholarly journal
Persistent URL http://hdl.handle.net/10536/DRO/DU:30007025

Document type: Journal Article
Collections: School of Accounting, Economics and Finance
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