Underwriting in the Australian IPO markets: Determinants and pricing

Alastair Marsden, Zoltan Murgulov, S. Ghon Rhee, Madhu Veeraraghavan

Research output: Contribution to journalArticlepeer-review


We examine the factors that explain the underwriting decision and underwriting fees for Australian initial public offerings (IPOs). Using a sample of Australian IPOs, spanning the period 1999–2019, we document the following results. IPOs that allow oversubscription of the shares, bookbuild offers, and IPOs with a greater delay to listing, are less likely to be underwritten. We also find that more prestigious underwriters are associated with greater IPO underpricing, while charging lower percent underwriting fees. Prestigious underwriters capture side benefits associated with their reputational status by offering their clients or favoured investors with discounted shares. JEL Classification: G12, G19, G38.

Original languageEnglish
JournalAustralian Journal of Management
Publication statusAccepted/In press - 2022

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)


Dive into the research topics of 'Underwriting in the Australian IPO markets: Determinants and pricing'. Together they form a unique fingerprint.

Cite this