The Pricing and Underwriting Costs of Japanese REIT IPOs

Kenji Kutsuna, Bill Dimovski () and Robert Brooks
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Kenji Kutsuna: Graduate School of Business Administration, Kobe University

No 2007-37, Discussion Papers from Kobe University, Graduate School of Business Administration

Abstract: This study investigates 40 Japanese REIT IPOs during 2001 to 2006 and finds evidence that higher final offer prices are reflected in higher underpricing levels by such IPOs. There is also some evidence that suggests the engagement of one of the big 3 Japanese underwriting firms suggests less money is left on the table. Economies of scale in underwriting fees for Japanese REIT IPOs are also found. Specifically, the percentage underwriting fees decrease with higher amounts of equity capital sought but that the percentage fee decreases at a diminishing rate.

Keywords: Real Estate Investment Trusts (REITs); initial public offerings (IPOs); underpricing; Japan; underwriting (search for similar items in EconPapers)
Pages: 19 pages
Date: 2007-09
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https://www.b.kobe-u.ac.jp/papers_files/2007_37.pdf First version, 2007 (application/pdf)

Related works:
Journal Article: The Pricing and Underwriting Costs of Japanese REIT IPOs (2008)
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