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The underpricing of A-REIT IPOs in Australia during 2002 to 2008

Dimovski, William 2010, The underpricing of A-REIT IPOs in Australia during 2002 to 2008, Pacific rim property research journal, vol. 16, no. 1, pp. 39-51.

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Title The underpricing of A-REIT IPOs in Australia during 2002 to 2008
Author(s) Dimovski, William
Journal name Pacific rim property research journal
Volume number 16
Issue number 1
Start page 39
End page 51
Publisher University of Technology Sydney
Place of publication Sydney, NSW
Publication date 2010-03
ISSN 1444-5921
Keyword(s) underpricing
A-REIT
IPOs
Summary This study analyses 45 Australian Real Estate Investment Trust (A-REIT) initial public offerings (IPOs) in Australia from January 2002 to June 2008, since the introduction of the single responsible entity to oversee the activities of listed property trusts (LPTs) Rather than the trustee and manager roles. The study finds that this sample of A-REIT IPOs had a significant 3.37% underpricing and that the direct costs of capital raising help explain this indirect cost of underpricing. There is some evidence to suggest that A-REIT IPOs that seek to raise more equity capital have less underpricing, while those that are subscribed to more quickly have higher underpricing. The findings offer insights for issuers who seek to maximize the value of the A-REIT at the time of the IPO, underwriters who guarantee the success of the capital raising and for investors who are looking to invest in Australian A-RE1T 1POs.
Notes Reproduced with the kind permission of the copyright owner.
Language eng
Field of Research 150403 Real Estate and Valuation Services
150205 Investment and Risk Management
Socio Economic Objective 900199 Financial Services not elsewhere classified
HERDC Research category C1 Refereed article in a scholarly journal
HERDC collection year 2010
Persistent URL http://hdl.handle.net/10536/DRO/DU:30028631

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Every reasonable effort has been made to ensure that permission has been obtained for items included in DRO. If you believe that your rights have been infringed by this repository, please contact drosupport@deakin.edu.au.