The nemesis of the IPO breakthrough: The 15 major issues that the Shanghai Municipal Party Committee followed and the 4 major reasons for the failure of the IPO to break through the level

Produced/company research room IPO group

Wen/Haichuan

Someone rushed to the science on the night, and some resigned to return to their hometown.

This sentence is used to describe the intended IPO company, such as Crossing River, which is actually very suitable. In the first half of the year, the IPOs of all 169 companies in the three major transactions in Shanghai and Shenzhen were successfully listed, and 171 companies were successfully listed. At the same time, there are also 129 companies' IPO applications termination. Among them, 15 companies are presented, and 114 are actively withdrawing orders.

Earlier, the company's research office made statistical analysis on the first day of the IPO issuance, fundraising and new shares of the three major exchanges in the first half of the year. Here, we will be summarized for the reason for the first half of the IPO. Overall, whether it is active withdrawal or whether it will be quilted, the reasons behind them are similar, just to expose the problem in different forms due to the subjective reasons of the parties: most of the withdrawals are insufficient confidence in investment banks or companies due to the problems of existing problems. Dare to break through the barrier; the person is mostly because of insufficient attention to the existing problems, or feel that the problem is not big and the adventure fails.

01 The 15 major issues that the Shanghai Municipal Party Committee followed and the 4 major reasons for the failure of the IPO to break through the level

One year spent similar, each year is different.

Since the registration system, the number of companies failed to break through the level every year is different, but the reasons behind are actually not much changed. Last year, some operators summarized the 15 issues that focus on the IPO review of the Municipal Party Committee, which are listed as follows:

Question 1: Exaggerate market position

Question 2: Compliant business risk

Question 3: Whether to conceal related transactions and performance fraud

Question 4: Whether the main business is Zhang Guan Li Dai

Question 5: Whether it has systemic risks affects continuous operation capabilities

Question 6: Whether the supplier has affiliated transactions and interest arrangements

Question 7: Whether the customer is excessively concentrated and whether the performance is faked

Question 8: Whether inventory covers performance fraud and business risks

Question 9: Whether the cost involves interest transmission and transfer profits

Question 10: Losses are not a problem, but you have to talk about quality

Question 11: whether the main position positioning is composite and innovated attributes

Problem 12: illegal guarantee and funds occupation are not feasible

Question 13: It's not conducive to small and medium investors for gambling

Question 14: The start -up project shows the aspirations of the entrepreneur

Question 15: The quality of the letter is exposed to the game and the company joined forces and the supervision game

Recently, when an investment bank person was interviewed by the media, the IPO was summarized by the four major reasons. These investment bankers believe that there are mainly the following four reasons for the withdrawal of the IPO enterprise or not: first, the positioning of the plans to be listed; the other is that there is a problem with the information disclosure; question.

Comparison of the company's research room found that these four major reasons were actually containing the 15 issues summarized by the industry last year. The reason why IPO breakthroughs fails because of the 15 key issues above the company's existence, there is no good solution. Therefore, it can be said that this is also the front and back of the same problem.

In the first half of the year, the IPO of 129 companies was suspended. The impact of the epidemic was an important reason.

In the first half of the year, the IPO of 129 companies was suspended, and the reason behind it was complicated. One of the important reasons was that the performance of some companies had declined because the epidemic situation was no longer in line with relevant listing requirements.

"Whether the IPO is high this year and the number of withdrawal orders is high, and it is also closely related to the affected affected by the issuer's operating activities in the past two years. In addition, some issuers have problems such as insufficient information disclosure.

In fact, in the first half of last year, the phenomenon of impacting the performance of the PO company was more prominent.

Data show that from the beginning of 2021 to June 13, 86 Shanghai and Shenzhen cities were terminated with the IPO project to be listed. Among them, 51 were from the GEM, 23 from the motherboard, and 12 from the science and technology board. Among them, 77 were actively terminated, accounting for about 90%, which was almost the same as that in the first half of this year; the remaining nine were the project audit.

So many companies take the initiative to withdraw orders. In response, Liu Chunyan, an associate professor at the School of Law of Tongji University, said that objectively, some companies' operating conditions have changed from the original conditions of listing to do not have the conditions for listing. Re -submit an IPO application.

However, the impact of the epidemic has led the enterprise to no longer meet the IPO conditions. From another side, it also reflects these acceptable IPO companies. The continuous operation capabilities are weak, their performance is greatly affected by the external environment, and it is easy to rise and fall.

03 Behind the phenomenon of "withdrawing as soon as possible", it is exposed to expose that the securities firms and the enterprise joined forces with the supervision game

In the past two years, the phenomenon of "withdrawing" during the IPO was issued. People in the industry believe that this actually exposes many brokerage companies with serious fluke and the intended to be reviewed by China and Mongolia.

People in the industry believe that the integrity and quality of information disclosure of information disclosure are all problems with the integrity and quality of information disclosure. From the perspective of batch withdrawal material phenomena and corporate IPO documents, there are still a few brokerage companies joining with the enterprise to go public with the CSRC's audit institution.

"Before, many small and medium -sized securities firms were not easy to get projects. So after getting the project, the" breakthrough "mentality is relatively heavy," said a brokerage investment banker. Attorney Gao Peijie, a Beijing Jingshi Law Firm, frankly said that some listed companies may have the phenomenon of "break through the level" and were discovered or afraid of being discovered by the regulatory agency during the review process. After entering 2022, the regulatory authorities have strengthened their supervision of investment banks, and have released a number of rules, urging the investment banks to return to their responsibilities, and the active withdrawal of the order is no longer the "life -saving" of the issuer and the investment bank.

On May 31, the Shenzhen Stock Exchange issued the "Regulatory letter to the sponsor representative Zhao Shaobin and Wang Yan." Zhao Shaobin and Wang Yan have previously worked in Hua'an Securities.

In June 2021, the Shenzhen Stock Exchange accepted the first public offering of the stocks recommended by Hua'an Securities for the first time and listed on the GEM. At that time, Zhao Shaobin and Wang Yan were sponsor representatives designated by Hua'an Securities. On July 4 of the same year, Fengsheng Optoelectronics was randomly selected as a live inspection. The regulatory letter pointed out that Zhao Shaobin and Wang Yan did not fulfill their sponsor duties in place, and there were 4 violations:

First, the lack of internal control in the management of Fengsheng Optoelectronics's inventory is not fully concerned;

Second, the relevant inspection work of Fengsheng Optoelectronics's R & D investment is not in place;

The third is that the accounting accounting of Fengsheng Optoelectronics has not been fully followed;

Fourth, errors in income classification cause inaccurate information disclosure.

In fact, there is still a lack of a deterrent mechanism for lifelong accountability of intermediaries and corporate founders. For Chinese investors, there is still a long way to go without cutting leeks. In the future, with the strengthening of regulatory efforts, investment banks will be more prudent and tutoring projects, and the phenomenon of "break through the level" of IPO companies may decrease.

04 Registration system under the first priority of the letter of composition, the IPO market will present six major characteristics in the future

With the continuous deepening of the registration system, information disclosure has become the first priority of the IPO market. Since this year, many IPO companies have been punished for illegal regulations.

On April 26, the SFC's letter of inspection was released: 2 IPO companies. During the reporting period, they were punished for repeated violations of laws and regulations. The family seemed to be on the market but fell into a loser quagmire. The cumulative loss was as high as 80 million!

Since the opening board, the low -key Bei Stock Exchange has just broke the record of "zero discipline penalties" on July 13th, and issued three "tickets" for Bio -Valley (833266.bj) and its sponsor Huarong Securities, of which The reason for a penalty is that a large amount of wealth management faith is illegal. It is reported that seven securities firms have been verbally warned by the Beijing Stock Exchange for violations of the rules, namely Dongguan Securities, Minsheng Securities, Western Securities, Caitong Securities, Shen Wanhongyuan Investment Bank, open source securities and Soochow Securities.

Under the new situation dominated by the registration system, what new features will the IPO market in the future?

In this regard, a brokerage investment bank person believes that in the future, the first -level market will present six major characteristics: one is to continue to increase the support for scientific and technological innovation enterprises, and emphasize the positioning of the sector; Third, in the context of the compliance, the supervision of information disclosure is continuously strengthened. As long as the enterprise meets the issuance conditions, the "small flaws" will be informed of investors, and the listing standards can still be more diversified, and the listing standards are more diversified. The number of "hard technology" enterprises has increased; the fifth is that intermediary agencies are more inclined to choose "three good" enterprises with good industry tracks, good texture, and good compliance; six are that more small and medium -sized enterprises may choose to be listed by listed companies. M & A, not IPO.

Obviously, with the deepening reform of the registration system, the company's performance may not be a necessary condition for listing. As long as this red line is stepped on, the chance of successful IPO is estimated to be infinitely close to zero.

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