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Factors Influencing Money Left on the Table by Property Trust IPO Issuers

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  • William Dimovski
  • Robert Brooks

Abstract

While previous listed property trust (LPT) initial public offering (IPO) studies have identified low under pricing returns, this study specifically examines the amount of money left on the table by the pre‐IPO owners in this category of IPO. This study investigates 58 property trust IPOs in Australia from 1994 to 2004 and finds that the amount of money left by LPT IPOs is considerably less than industrial company IPOs, implying considerably less uncertainty about the valuation of such IPOs compared to industrials. We also find that more recent (post 2000) LPT IPOs in Australia appear to be significantly different to previous LPT IPOs in both money left and under pricing terms.

Suggested Citation

  • William Dimovski & Robert Brooks, 2006. "Factors Influencing Money Left on the Table by Property Trust IPO Issuers," Journal of Property Research, Taylor & Francis Journals, vol. 23(3), pages 269-280, September.
    • Handle: RePEc:taf:jpropr:v:23:y:2006:i:3:p:269-280
    DOI: 10.1080/09599910600969206
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    References listed on IDEAS

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    Cited by:

    1. Kenji Kutsuna & William Dimovski & Robert Brooks, 2008. "The Pricing and Underwriting Costs of Japanese REIT IPOs," Journal of Property Research, Taylor & Francis Journals, vol. 25(3), pages 221-239, November.
    2. William Dimovski, 2010. "The pricing of infrastructure initial public offerings: evidence from Australia," Journal of Property Research, Taylor & Francis Journals, vol. 28(1), pages 3-14, July.
    3. Su Chan & Jiajin Chen & Ko Wang, 2013. "Are REIT IPOs Unique? The Global Evidence," The Journal of Real Estate Finance and Economics, Springer, vol. 47(4), pages 719-759, November.

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