IPO Speed Up Or Paving The Way In The Trial Year.

The pace of IPO trial appears to have accelerated again.

According to the twenty-first Century economic report reporter statistics, the IPO trial rate since the end of September appears to have further accelerated compared with the previous months. The total number of enterprises in the two weeks (from September 23rd to October 12th) in the National Day has reached 25.

According to a number of investment bankers close to the regulatory level, the pace of IPO trial and conference is indeed accelerating, and many investment banking teams are making efforts to speed up the preparation of the meeting materials, so that enterprises can meet the conditions of faster trial or trial meeting.

In the industry view, this audit trend on the one hand will help to relieve the new quake lake under the current registration system. On the other hand, it will create conditions for the new and old registration system reform in the future.

Speed up

The number of upper level enterprises in the same period is increasing.

Twenty-first Century economic report reporter statistics Wind data found that the number of enterprises on the IPO week is increasing quietly, the last working week on the eve of National Day (from September 23rd to 27th, including 30 days) will be up to 11 enterprises, and the first working week after the National Day holiday (from October 8th to October 12th), the number of audited companies is more than 12.

This also means that the total number of IPO enterprises will be up to 25 during the two working weeks before and after the national day, and the average daily number will be up to 2.27 per day on weekdays. This figure has greatly exceeded the previous value.

For example, in the first three working weeks of September (from September 2nd to 20th), the total number of IPO enterprises will be 20, while the total number of IPO enterprises in July and August will be 23 and 13 respectively, and the number of enterprises on average will be as low as 0.8.

It is worth mentioning that in the process of speeding up the trial, there seems to be a higher rate of meeting. Statistics show that in the 25 companies that will be examined in the two weeks before and after the national day, except for the Gulf Environment Technology (Limited by Share Ltd) of Beijing, only Beijing ink and Fengyun Polytron Technologies Inc and Shanghai Titan Polytron Technologies Inc have failed to pass the meeting. The remaining 22 companies have achieved a meeting rate of 88%.

In fact, this is the second speed increase in the IPO trial since this year. The last acceleration occurred in June this year. Statistics show that in June this year, there were as many as 49 enterprises meeting, and the average daily number of work days was 2.45, compared with 87.76% at that time.

The other side of speeding up the IPO trial is the re emergence of the barrier lake in front of the curtain of registration reform. According to Wind data statistics, as of October 14th, the number of queuing IPO enterprises that has been updated since 2019 has reached as many as 536, with the number of new enterprises receiving up to 27 since September.

"This year, the reemergence of barrier lake is indeed easy to passively lead to IPO cycle longer. In the two quarter, some targeted IPO special inspections have played a role in screening and filtering issuers to a certain extent." A small and medium brokerage company in Beijing said, "however, it is better to plug the market than to increase the rate of trial issuance, and arrange the meeting of enterprises as soon as possible, which is the fundamental way to further alleviate the barrier lake".

However, this is also related to more intensive enterprise boards. The statistics show that up to 11 companies have been accepted by the exchange for initial applications from September 12th to October 12th, with an average of less than 3 days.

"After the dozens of companies listed on the board, the wealth effect has been revealed based on high valuation." The aforementioned investment bankers pointed out that "the audit process and mode of Ke Chuang plate are more marketable, while issuing pricing can further reflect the value of the enterprise, and more competent enterprises may be transferred to the science and technology board in the guidance period or earlier."

Paving reform?

In response to the rebound in the speed of trial issuance, the investment banking team is also well prepared.

"The speed of the trial has really accelerated, and now it is faster to prepare materials." A broker dealer in Shanghai said, "there is less than a quarter left this year. We must strive for projects to meet the conditions of trial or trial meeting before the end of the year."

"Some issuers at this point also hope to take advantage of the number of enterprises on the upper level as soon as possible to speed up their listing efficiency." The investment bank said, "but from the feedback of regulation, the acceleration of the trial efficiency does not mean the relaxation of audit standards, nor has there been any change in audit standards."

In the industry view, the speed increase of the IPO trial is related to the governance demands for the re accumulation of dammed lake. On the other hand, it may be a paving for the registration system reform of the gem and other stock markets.

After the completion of the reform of the science and technology board, the stock market of the main board, small and medium sized boards, and the growth enterprise market will also enter the window of registration system reform. An investment bank official close to the regulatory level in Beijing said, "the speed of the current IPO trial is not ruled out related to the expected reform of the stock market."

In fact, the reform signal around Shenzhen stock exchange is constantly strengthening. In September this year, the CPC Central Committee and the State Council's opinions on supporting the construction of the leading demonstration zone of socialism with Chinese characteristics in Shenzhen clearly put forward: "improving the financial services' real economic capacity, studying and improving the listing and listing, refinancing and merger and reorganization system of the gem, and creating conditions to promote the registration system reform."

In October 9th, the chairman of the China Securities Regulatory Commission, Yi Hui man, pointed out in his research in Shenzhen that he would push ahead with the reform and development of Shenzhen's capital market, and achieve phased results as soon as possible, so as to enhance the quality and efficiency of the capital market in serving the real economy. Wang Weizhong, Secretary of the Shenzhen Municipal Committee, said he hoped to accelerate the improvement of the listing and refinancing system of the gem, and promote the registration system reform.

In the opinion of the former investment bankers, one of the significances of accelerating the efficiency of IPO trial is to prepare for the registration system reform in advance.

"If the stock market reform is bound to involve changes in the process and mode of listing declaration, acceptance and approval, it will correspond to the qualifications, conditions and declaration points of the issuer." The former investment bankers who are close to the regulatory authorities point out that, from the point of view of non retroactive laws, the stock reform mode including the growth enterprise market will probably follow the principle of new and old delimitation, that is, the new issuers declared after the implementation of a certain time node after the implementation of the reform will declare the audit according to the new IPO rules, while the previously declared enterprises will not be affected. In order to cooperate with the new reform, it is necessary to speed up the audit and meeting of this kind of enterprises.