There Are More Than 200 IPO Companies Waiting For Registration Approval

According to the statistics of the 21st century economic report, as of March 2, 266 A-share companies have passed the examination and approval of the national development and examination commission or the Municipal Committee of the stock exchange, of which 210 enterprises are to be listed under the registration system.

Since October 2020, the domestic IPO market, especially the IPO ecology under the registration system, is quietly changing. On the one hand, the frequency and strength of on-site inspection and supervision of IPO have been strengthened, and there are many enterprises to be "dissuaded" from going public, and the cases of termination of audit have increased sharply; on the other hand, with the pace of IPO issuance basically unchanged, there is a backlog of enterprises waiting for approval in the market, and the road congestion of listing has become a problem that needs to be addressed.

According to the statistics of the 21st century economic report, as of March 2, including the suspension of projects, a total of 753 companies to be listed in the A-share market are queuing up. Among them, only 22.7% of the main board and small and medium-sized board enterprises under the approval system are under examination, and nearly 80% of the remaining enterprises hope to be listed through the registration system.

After sorting out the data, we can find that among the 753 enterprises, 266 have passed the examination of the national development examination commission or the Municipal Committee of the exchange, and the enterprises under the registration system also account for the absolute majority of 210.

Whether IPO barrier lake has been formed under the registration system has become the focus of market attention.

Since October 2020, the domestic IPO market, especially the IPO ecology under the registration system, is quietly changing. Photo by Gan Jun

A large number of enterprises swarmed into the audit end

"There is a difference between the queuing phenomenon of IPO reporting enterprises and the" barrier lake "problem in history In response to the problem of a large number of IPO queuing companies, the relevant person in charge of the CSRC said in response to the reporter's question that when the "barrier lake" appeared before, the IPO did not realize normalization, and the suspension and opening of IPO were not clear. It took two to three years for some enterprises to apply for approval from the first time.

In recent years, the CSRC has maintained the normalization of IPO in a scientific and reasonable way. Especially after the reform of the registration system, the CSRC has focused on improving the transparency and efficiency of audit. At present, the average cycle of examination and registration of the science and technology innovation board and the gem has been greatly reduced to more than five months.

Many people in the securities industry also agree with the statement made by the CSRC.

"Although there are a large number of queuing companies that have not been listed, the core of the current listing congestion is not in the audit side. Under the registration system, the responsibility is shifted to the exchange, and the exchange still needs to ensure the quality of audit, and can not arbitrarily accelerate the speed. " Some senior investment banks in Beijing said that, on the other hand, the regulatory authorities have not tried to solve the problem of too many enterprises to be approved and raise the hidden threshold of IPO. The market-oriented examination and issuance has been operating effectively.

"Recently, there have been a large number of cases of termination of audit under the registration system, but the root cause is that the quality of enterprises is not up to standard and can not withstand on-site inspection or supervision and inquiry. This also shows that the exchange is right to maintain the current audit status, and there are not a few enterprises fishing in troubled waters." The senior investment bank pointed out that the intensity and frequency of on-site inspection also alleviated the IPO queuing problem.

In terms of audit speed, take the science and technology innovation board as an example. According to the statistics of 21st century economic report reporters, except that the audit cycle of the first batch of listed enterprises can be guaranteed to be completed within 3 months, most of the enterprises spent about 4-5 months from the IPO declaration to the approval of the municipal Party committee, and the recent audit rhythm has not changed significantly.

Therefore, the root of IPO declaration enterprises queuing up is still the obvious growth of declaration projects. The CSRC also pointed out that, on the one hand, in recent years, "hard technology" and innovative and entrepreneurial enterprises have accelerated their growth and sought to be listed. On the other hand, the comprehensive deepening reform of the capital market implemented by the regulatory authorities has greatly improved the market expectations, and the attractiveness of the domestic capital market has increased significantly.

Wang Jiyue, a senior investment banker, further pointed out that the audit spirit under the registration system is "taking information disclosure as the core", and substantial audit has been greatly reduced. In addition, the competition of Shanghai and Shenzhen stock exchanges for listing resources has greatly reduced the difficulty of IPO, which has brought about a substantial increase in the number of new applicants.

Speed up of release end rhythm becomes a problem

Different from the "congestion" caused by the sharp increase of reporting enterprises at the audit end, the barrier lake situation faced by the enterprises that have passed the meeting is more severe.

At present, 266 companies have passed the examination and approval of the national development and examination commission or the Municipal Committee of the exchange. Among them, the growth enterprise market accounted for 121, and the science and technology innovation board market accounted for 89.

After a simple calculation, Wang Jiyue said that according to the current approval rhythm, there are 5 companies registered on the science and technology innovation board and the growth enterprise market each week. The existing enterprises that have passed the science and technology innovation board can issue enough for 18 weeks, that is, 4.5 months, and the enterprises that have passed the gem can issue enough for 24 weeks, that is, 6 months. "That is to say, even if the stock exchange stops auditing now, the IPO rhythm of the science and technology innovation board and the growth enterprise market in the first half of this year will not be greatly affected. In other words, the companies that have not yet been listed on the science and technology innovation board and the growth enterprise market can start to prepare for the supplement to the Chinese newspaper. "

In fact, there is no obvious slowdown trend in IPO issuance pace in the near future. Taking the science and technology innovation board market as an example, the number of entrepreneurs to be listed each week is mostly kept at about 4-5. From the perspective of listed companies, from the beginning of 2020 to now, 43 enterprises under the registration system have completed the listing. In 2020, as the year of IPO, only 36 enterprises have been listed on the science and technology innovation board or gem.

But even such a rhythm cannot alleviate the existing "congestion" of distribution. Previously, 399 IPOs were issued and 394 companies were listed in 2020. Wang Jiyue predicts that the number of IPOs will be around 500 in 2021. "If there is no large proportion of withdrawing materials or rejecting projects, the current projects under review will not be completed this year, and the IPO rate of companies to be declared in 2021 will be about 2022."

According to the relevant person in charge of the securities investment bank in East China, after the enterprise has passed the examination and approval of the municipal Party committee, its qualification has basically been proved, and it can be registered without taking too much time. Since the pilot registration system, there have been only four cases of termination of registration, which shows that the audit of the exchange is effective and most of the enterprises passing the meeting have no problems.

The head of the investment bank said that in 2017, the number of A-share IPOs reached a peak of 419, "if there are more than 500 listed companies, the regulatory authorities will have to worry about the market reaction after that.".

Wang Jiyue also said that if the pace of approval is not controlled, the number of IPO companies will rapidly exceed 700 each year, the market differentiation will immediately accelerate, and the stock prices of a large number of gradually forgotten companies in the market will further accelerate the decline. Supervision will be more inclined to ensure the continuity of market financing function on the basis of stable market operation.

But he also pointed out that at present, the market has begun to break new shares, and the issuance price of some companies has touched the bottom price. "Individual companies have already had the idea of delaying the issuance of shares, and the market's refusal to list seems like a window paper. Although the impact of market-oriented issuance may be a little painful in the short term, after this threshold, the reform may be really successful. "

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