The Cost Of Listing And Financing Remains High, &Nbsp.

A company in Jiangsu started (IPO).

Zhu Baoliang, chief economist of the Ministry of economic information of the state information center, believes that the increasing cost of IPO financing is one of the reasons for the frequent surge of new shares, and has also damaged the interests of investors.

Domestic agency fees, such as sponsor underwriting fees, lawyer fees and accountants fees, can be included in the current profits according to a certain proportion, so as to effectively reduce the financing cost of enterprises.

Financing costs remain high

Since the restart of IPO in 2009, the income of intermediary service institutions, including investment banks, law firms, accounting firms, financial and public relations companies, and third party data companies, has shown explosive growth.

According to relevant statistics, from July 2009 to 2010 10, the average underwriting fee of the listed companies of SME board was 38 million 660 thousand yuan, and the average underwriting fee of the listed companies on GEM was 35 million 340 thousand yuan. The average cost of accounting for SMEs was 2 million 260 thousand yuan, and the average growth rate of gem was 1 million 790 thousand yuan. On average, the average size of SME boards was 1 million 170 thousand yuan, and the average growth rate of gem was 1 million 180 thousand yuan.

"Including the sponsor underwriting fee, lawyer fees, accountants fees, road show fees, listing cocktail parties, etc., all the distribution costs remain between 6% and 8% is relatively appropriate, issuers can afford, intermediaries can get satisfactory returns, investors can accept."

Shenzhen, a large brokerage related responsible person pointed out.

But the reality is that a considerable number of companies IPO financing costs exceed 8%.

According to statistics from the Securities Times reporter to 29 GEM companies, 6 companies have more than 8% of their financing costs, of which two companies even exceed 10%.

Taking the above-mentioned company in Jiangsu Province as an example, the prospectus of the company shows that only one sponsorship fee has been spent 37 million yuan, the underwriting fee has been paid 12 million 739 thousand and 800 yuan, the audit and verification expenses have been paid 2 million 700 thousand yuan, the lawyer's expense has been paid 3 million yuan, the road show promotion and other expenses have totaled 3 million 765 thousand yuan.

Overall, its IPO financing cost is as high as 13.9%.

"In general, the over subscription income is included in the underwriting fee, and the sponsor fee is only the fee charged by the sponsor for the project listing guidance, due diligence, production materials and later continuous supervision, usually only a few million yuan.

The sponsor of the company mentioned above is likely to include the over subscription income into the sponsorship fee, which is not very consistent with the usual practice of the industry.

A listed brokerage investment bank believes.

According to the company's bulletin, the effective purchase multiplier of the company's online placement was 18.8 times, the effective purchase proportion was 5.32%, the online issuance rate was 8.19%, the oversubscription multiplier was 12 times, and the demand for the investment project was 289 million yuan, which actually raised 425 million yuan.

Reduce financing costs and curb oversubscription

Guo Shiping, director of the Financial Research Institute of Shenzhen University, believes that since most issuance costs are directly deducted from the issuer's raised funds, the high cost of financing will ultimately be paid by investors, so issuers are generally more generous.

According to the notice issued by the Ministry of Finance in December 28, 2010 on the implementation of the annual accounting report of listed companies and non listed enterprises on the implementation of the accounting standards for enterprises (accounting [2010]25 No.), the listed companies shall record the expenses incurred during the reporting year, including the advertising expenses, the road performance promotion fees and the liquor Club fees incurred in the issuance of the rights and interests securities in the reporting year, and so on.

"Since the issuance of Article 25, there has been a great reduction in the cost of road promotion and the listing of liquor Club fees in the course of IPO, which are deducted from the current profits of enterprises."

A listed broker investment bank pointed out.

Zhu Baoliang suggested that intermediary agency costs such as sponsor underwriting fees, lawyer fees and accountants fees should be included in the current profits in a certain proportion, so as to effectively reduce the financing costs of enterprises and protect the interests of investors, thereby inhibiting the "impulse" of enterprises' excessive recruitment, and at the same time, inhibiting the issuance of new stock bubbles.

Li Daxiao, director of the British Securities Research Institute, also believes that the financing cost of domestic enterprises is higher than that of foreign countries. If IPO financing costs continue to be high, it will increase the operation cost of capital market.