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Paper eres2015_7:
The Direct Costs of A-REIT IPOs

id eres2015_7
authors Dimovski, William
year 2015
title The Direct Costs of A-REIT IPOs
source 22nd Annual European Real Estate Society Conference in Istanbul, Turkey
summary Direct costs of Australian REIT IPOs were last reported in the literature using data to 2004. Much has occurred since then. This study introduces and includes the A-REIT IPOs over the last 10 years and examines the cost and the factors influencing the percentage underwriting and percentage total direct costs by A-REITs IPOs. The study also investigates specifically whether the utilization of an underwriter (who guarantees the success of the capital raising) rather than a stockbroker (who doesn’t guarantee such success) costs significantly more. The study finds that larger capital raisings and those with large investor or institutional involvement identified in the prospectus are significant in reducing underwriting costs. The study does not find that underwritten IPOs are significantly more expensive (or cheaper) than those not underwritten. Additionally, the size of the issue, whether the firm offers stapled securities (is internally managed) and has higher net asset to issue price characteristics reduces the total cost of underwritten IPOs._
keywords total direct costs, IPOs, underwriting costs, REITs, Australia
series ERES:conference
type paper session
email wd@deakin.edu.au
content file.ppt (473,600 bytes)
discussion No discussions. Post discussion ...
ratings
session International Real Estate
last changed 2015/07/08 18:06
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