Sino-Singapore Jingwei Client, February 26th (Zhang Yanzheng) On February 24th, Lanke Environmental Protection, Guoguang Information, and Dulwich Huatai on the Sci-tech Innovation Board withdrew materials to terminate the IPO, and GEM Henglun Medical and Huapeng Instruments also chose to withdraw materials; On February 22, Ziquan Energy, Baizijian Technology, and Bochuang Intelligence actively terminated the IPO; on February 10, Rouyu Technology terminated the IPO... In the past month, 20 companies selected by lottery required on-site inspection registration Among the companies preparing for an IPO, 16 companies chose to withdraw materials to terminate the IPO.
80% of companies spotted to terminate IPO
On January 31, the official website of the China Securities Regulatory Commission disclosed that the Securities Industry Association of China organized and completed the lottery work of spot checks on the quality of information disclosure of 20 initial companies.
This batch of 407 companies on the Sci-tech Innovation Board and ChiNext Board accepted before January 30, 2021, and 20 of them were selected.
As of February 26, 2021, of the 20 companies that have been spot-checked, 16 have chosen to withdraw, including 7 on the Science and Technology Innovation Board (9 in total) and 9 on the ChiNext (11 in total), with a withdrawal ratio of 80%.
At present, Zhejiang Guoxiang Co., Ltd., Suzhou Huazhijie Telecommunications Co., Ltd., and Jiangsu Yangrui New Materials Co., Ltd. are still waiting in line for IPO applications. The first two plan to go to the Science and Technology Innovation Board, and the latter is the ChiNext .
The Beijing Jiuzhou Fengshen Technology Co., Ltd. suspended its IPO in December last year.
It is understood that the intensive termination of IPOs by companies that have been inspected on site may be related to a new regulation.
On January 29, the official website of the China Securities Regulatory Commission issued the "Regulations on the On-site Inspection of Initial Enterprises."
From the content point of view, the new regulations clarify the basic requirements, standards, procedures, and follow-up processing of on-site inspections of the starting companies, which also put forward stricter requirements on the relevant sponsors and law firms.
The 20 listed companies mentioned above are just the first batch of samples selected by the supervisory authorities for on-site inspection after the release of the new inspection regulations.
According to regulations, voluntary withdrawal can avoid on-site testing.
According to the "Regulations on On-site Inspection of First-issuing Enterprises", if the audit subject withdraws the IPO application within ten working days after receiving the written inspection notice, in principle, no on-site inspection will be performed on the enterprise.
However, if clear clues such as suspected false records, misleading statements, or major omissions are found in the withdrawn enterprise, on-site inspections will still be carried out and be dealt with in accordance with laws and regulations.
Ding Zhenyu, a senior investment consultant of Jufeng Investment Consulting, said in an interview with the Sino-Singapore Jingwei Client that the
companies
that
were spot-checked voluntarily withdrew their applications, and they were often forced rather than actively.
Some are not complying with the issuance conditions due to changes in the business environment or situation, some may be due to reports or supervision on-site inspections or supervision found major problems, and some may be that some problems in the review process cannot be reasonably explained.
On the surface, voluntary withdrawal of materials has no direct impact on the company, but subsequent listing applications may face more stringent review.
Can I submit a listing application in the future?
On February 10, the Shanghai Stock Exchange terminated its review of the listing of Rouyu Technology on the Science and Technology Innovation Board.
As for the reasons for the termination of listing, Royole Technology insiders told the media that the eligibility of the "three types of shareholders" at the direct level based on the company’s shareholder structure has yet to be further demonstrated. Taking into account the company’s development strategy, the decision is made after research. , Suspend the application for listing on the Science and Technology Innovation Board.
Rouyu Technology did not make a clear statement on whether it will continue to seek A-share IPOs in the future, or go public in Hong Kong and the US market.
Lanke Environmental Protection is the company under investigation that has recently withdrawn materials.
Judging from the review process, its IPO on the Science and Technology Innovation Board was accepted on October 9, 2020, and “inquired” was displayed on November 5, after which it responded to two rounds of review inquiries, but withdrew the IPO materials two days ago .
On the 24th, a person from the Lanke Environmental Protection Board Secretary Office responded to the media saying, "The withdrawal of the IPO application is mainly for the company's development considerations and is a strategic adjustment. It is only withdrawn temporarily and will not abandon the IPO goal later."
Analysys Financial industry analyst Tian Jie told the Sino-Singapore Jingwei client that
companies
that
withdraw their IPO applications can submit their application drafts again within 12 months, but they will directly enter the on-site review list and no lottery will be drawn.
"Not so much for IPO companies, the new regulations actually regulate sponsor institutions and financial institutions more, allowing them to perform more review obligations. If there is a problem in the on-site review, the sponsor institution and accounting firm shall bear joint liability, which indirectly increases the IPO By keeping the entry barriers, the number of IPO companies will slow down and the quality will improve."
Tian Jie believes that on-site review will allow good companies to have review endorsements and expose bad companies. There are many companies that have doubts in the market. Once they pass the review, the market will often dispel the doubts and the subsequent valuation will be higher, and vice versa. Of course.
In short, this is good for investors, and it also reflects that the current review mechanism has obvious loopholes and the market is still inadequate.
Dong Dengxin, director of the Institute of Financial Securities of Wuhan University of Science and Technology, said in an interview with the Sino-Singapore Jingwei Client that the "Regulations on On-site Inspection of Initial Enterprises" are an important supplement to the review of IPOs by the Stock Exchange under the registration system. The objects of random inspection include accepted IPOs. Companies or companies that are in the process of inquiry.
“The registration system of the Science and Technology Innovation Board or the ChiNext Board has greatly improved the inclusiveness of the market. The Stock Exchange no longer conducts substantive reviews of these companies. In terms of the authenticity of the IPO materials, some companies have a fluke mentality."
Dong Dengxin believes that for selected companies, if the materials they declare for listing are false or have guilty conscience, these companies may take the initiative to withdraw the materials because they have no confidence and confidence in spot checks.
This is mainly because once the result of the spot check is found to be fraudulent in the application materials, the company will be blacklisted and future IPOs will be greatly affected.
If the company voluntarily withdraws the materials, it will not leave a "documentary".
Therefore, many companies choose to withdraw and re-complete or wait for a new IPO opportunity.
"From the current point of view, the proportion of materials withdrawn by random inspection companies is very high. This also proves that the new measure of on-site inspection of first-issue companies has an excellent deterrent and deterrent effect, and has achieved the corresponding check effect. I think random inspections The scope can be further expanded, which is conducive to better improving the quality of IPO information disclosure, which is also the foothold of on-site inspection." Dong Dengxin said.
(Zhongxin Jingwei APP)
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