The Journal of Real Estate Finance and Economics
Volume 24, Issue 1, Article 5 (Abstract)
Title:	Initial Public Offerings: Evidence from the British, French and Swedish Property Share Markets
Author:	Dirk Brounen and Piet Eichholtz
Abstract:	This paper investigates the underpricing and long-run performance of Initial Public Offerings (IPOs), using a unique sample consisting of 54 British, French and Swedish property companies, which became publicly listed during the period 1984-1999. Similar to common stock IPOs, the European property share IPOs in our sample outperformed the benchmark on the first day of trading, on average with 2.55%. However, these property share IPOs tend to underperform their benchmark over the twelve-month period subsequent to the initial offering. We also examine explanatory factors such as issue size, the degree of debt financing, ex-ante uncertainty, and the underlying property types of the companies involved. The results are in line with those previously found for common stocks.
Keywords:	IPO underpricing, equity issues, property companies