The Impact of Initial Public Offerings’ Characteristics on Real Estate Investment Trusts’ Underpricing: The Saudi Context

Q4 Multidisciplinary

Scientific Journal of King Faisal University Pub Date : 2022-01-01 DOI:10.37575/h/mng/220022

Hessa Albarrak, Abdullah Aljughaiman2, Mohammed S. Albarrak

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引用次数: 0

Abstract

In recent years, many Real Estate Investment Trusts (REIT) have issued to initial public offerings (IPO) in the Saudi Stock Exchange “Tadawul.” Occasionally, trust fund issuers such as REITs may face challenges in selling their shares to the public. One of the challenges related to underpricing is trading the stock on the first day of the market. This study investigates the relationship between REIT characteristics and share underpricing for a sample of REITs that are listed on the Saudi Stock Exchange “Tadawul.” The purpose of the study is to focus on one of the challenges that is related to the IPOs of REITs. Using a sample of 17 IPOs of REITs listed on the Saudi Arabian Stock Exchange “Tadawul” for the period between 2016 and 2020, we show significant negative associations between the number of IPO underwriters, number of shares subscribed, and the firms’ dividend payouts and REITs’ underpricing. The result also shows a significant positive association between the number of subscription days and REITs’ underpricing. The research should provide significant implications for regulators and market participants in the light of the public offering and the REIT sector. KEYWORDS public offering, financial performance, real estate, investment trusts, stock exchange, Tadawul

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首次公开发行(ipo)特征对房地产投资信托定价过低的影响:以沙特为例

近年来，许多房地产投资信托基金(REIT)已在沙特证券交易所“Tadawul”首次公开募股(IPO)。偶尔，信托基金发行人(如REITs)在向公众出售股票时可能会面临挑战。与定价过低有关的挑战之一是在上市首日交易股票。本研究以在沙特证券交易所“Tadawul”上市的REIT为样本，探讨REIT特征与股票抑价之间的关系。本研究的目的是关注与房地产投资信托基金ipo相关的挑战之一。以2016年至2020年期间在沙特阿拉伯证券交易所“Tadawul”上市的17家REITs IPO为样本，我们发现IPO承销商数量、认购股票数量与公司派息和REITs低估之间存在显著的负相关关系。结果还显示，认购天数与REITs的低定价之间存在显著的正相关关系。该研究将为监管机构和市场参与者在公开发行和房地产投资信托行业提供重要的启示。关键词:公开发行，财务业绩，房地产，投资信托，证券交易所，Tadawul

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来源期刊

Scientific Journal of King Faisal University Multidisciplinary-Multidisciplinary

CiteScore

0.60

自引率

0.00%

发文量

期刊介绍： The scientific Journal of King Faisal University is a biannual refereed scientific journal issued under the guidance of the University Scientific Council. The journal also publishes special and supplementary issues when needed. The first volume was published on 1420H-2000G. The journal publishes two separate issues: Humanities and Management Sciences issue, classified in the Arab Impact Factor index, and Basic and Applied Sciences issue, on June and December, and indexed in (CABI) and (SCOPUS) international databases.