Rationale behind IPO underpricing: evidence from Asian REIT IPOs
This article examines the rationale behind IPO underpricing using a sample of REIT IPOs in Asia. Although the IPOs registered an average initial return of 3.08%, the issuers were able to sell the IPO shares above their fundamental values by timing the listings in periods when existing REIT stocks ar...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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John Wiley & Sons, Inc.
2018
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/25636/1/Ooi_et_al-2019-Real_Estate_Economics.pdf |
| _version_ | 1825805326333509632 |
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| author | Ooi, Joseph T.L. Mori, Masaki Wong, Woei Chyuan |
| author_facet | Ooi, Joseph T.L. Mori, Masaki Wong, Woei Chyuan |
| author_sort | Ooi, Joseph T.L. |
| collection | UUM |
| description | This article examines the rationale behind IPO underpricing using a sample of REIT IPOs in Asia. Although the IPOs registered an average initial return of 3.08%, the issuers were able to sell the IPO shares above their fundamental values by timing the listings in periods when existing REIT stocks are traded at a premium to their net asset values (NAV). An IPO could therefore be underpriced and yet produce a net gain for the issuer. The issuers’ net gain from IPO is, however, negatively related to long‐run performance of REIT IPOs. |
| first_indexed | 2024-07-04T06:30:29Z |
| format | Article |
| id | uum-25636 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:30:29Z |
| publishDate | 2018 |
| publisher | John Wiley & Sons, Inc. |
| record_format | eprints |
| spelling | uum-256362019-02-24T02:04:41Z https://repo.uum.edu.my/id/eprint/25636/ Rationale behind IPO underpricing: evidence from Asian REIT IPOs Ooi, Joseph T.L. Mori, Masaki Wong, Woei Chyuan HC Economic History and Conditions This article examines the rationale behind IPO underpricing using a sample of REIT IPOs in Asia. Although the IPOs registered an average initial return of 3.08%, the issuers were able to sell the IPO shares above their fundamental values by timing the listings in periods when existing REIT stocks are traded at a premium to their net asset values (NAV). An IPO could therefore be underpriced and yet produce a net gain for the issuer. The issuers’ net gain from IPO is, however, negatively related to long‐run performance of REIT IPOs. John Wiley & Sons, Inc. 2018 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/25636/1/Ooi_et_al-2019-Real_Estate_Economics.pdf Ooi, Joseph T.L. and Mori, Masaki and Wong, Woei Chyuan (2018) Rationale behind IPO underpricing: evidence from Asian REIT IPOs. Real Estate Economics, 47 (1). pp. 104-137. ISSN 10808620 http://doi.org/10.1111/1540-6229.12243 doi:10.1111/1540-6229.12243 doi:10.1111/1540-6229.12243 |
| spellingShingle | HC Economic History and Conditions Ooi, Joseph T.L. Mori, Masaki Wong, Woei Chyuan Rationale behind IPO underpricing: evidence from Asian REIT IPOs |
| title | Rationale behind IPO underpricing: evidence from Asian REIT IPOs |
| title_full | Rationale behind IPO underpricing: evidence from Asian REIT IPOs |
| title_fullStr | Rationale behind IPO underpricing: evidence from Asian REIT IPOs |
| title_full_unstemmed | Rationale behind IPO underpricing: evidence from Asian REIT IPOs |
| title_short | Rationale behind IPO underpricing: evidence from Asian REIT IPOs |
| title_sort | rationale behind ipo underpricing evidence from asian reit ipos |
| topic | HC Economic History and Conditions |
| url | https://repo.uum.edu.my/id/eprint/25636/1/Ooi_et_al-2019-Real_Estate_Economics.pdf |
| work_keys_str_mv | AT ooijosephtl rationalebehindipounderpricingevidencefromasianreitipos AT morimasaki rationalebehindipounderpricingevidencefromasianreitipos AT wongwoeichyuan rationalebehindipounderpricingevidencefromasianreitipos |