IPO withdrawal is not a slowdown in the pace of listing
Li Hualin
The quality of listed companies is the cornerstone of the sustainable development of the capital market.
For "sick" IPOs, the regulatory authorities emphasized the need to put an end to "withdrawal upon supervision".
At the same time, "gatekeepers" should continuously improve the quality and level of their performance, and strictly control the "selection" of projects.
The issuer should also strictly control the "quality control" of the enterprise. Only by truly strengthening the body and practicing well, can it withstand the big waves of the capital market.
Recently, the "heating up" of IPO withdrawal applications has attracted market attention.
Since 2022, more than 10 companies planning to go public have terminated their IPO projects.
Some investors have raised doubts about this: Is the pace of corporate listings slowing down?
The author believes that there is no need to rush to conclusions.
The above-mentioned IPO withdrawal orders are all voluntary withdrawals of applications by enterprises, mainly due to two situations: one is that some companies give up IPO due to adjustment of business direction, large fluctuations in performance or insufficient preparation; Breaking through the barrier", and withdrawing voluntarily when encountering on-site inspections.
This is not only not to mention the slowdown of the IPO pace, but to a certain extent reflects the effect of the regulatory authorities on the "entry gate", and reflects the regulatory orientation of improving the quality of listed companies from the source.
In recent years, with the continuous advancement of the registration system reform, more companies have seen the hope of listing, and their enthusiasm for going to the A-share market is high.
However, because some issuers and intermediaries do not fully understand the connotation of the registration system and do not fully grasp the relationship between the registration system and the improvement of the quality of listed companies, after the door to the registration system is "opened", blind pursuit of listing speed and contempt for listing norms 2. The situation of attaching importance to the quantity of sponsors and ignoring the quality, and the phenomenon of enterprises "running through barriers with illness" frequently occurs.
For "sick" IPOs, the regulatory authorities have been paying close attention, and have repeatedly emphasized the prohibition of "withdrawal upon supervision".
In July 2021, the China Securities Regulatory Commission issued the "Guiding Opinions on Urging Securities Companies to Engage in Investment Banking Business with due diligence under the registration system", clarifying and further expanding the scope of on-site inspection and supervision, adhering to the principle of "declaration is responsibility", and for receiving on-site For projects withdrawn after inspection or supervision notice, the CSRC and the exchange will organize inspections in accordance with the law.
Recently, the China Securities Regulatory Commission disclosed 12 investment banking business violation tickets at one time, many of which involved violations of IPO sponsorship projects.
The quality of listed companies is the cornerstone of the sustainable development of the capital market.
Strictly prevent "entering the border with illness", and also need to improve the openness and transparency of regulatory information, so as to prevent enterprises from "withdrawing".
The regulatory authorities can timely disclose the real reasons for companies to withdraw their IPOs during inspections, protect the market’s right to know, not only let the public know the strength of law enforcement, but also have an effective warning effect on other companies and intermediaries, so that market players understand that listing is not a child’s play , Actions must abide by norms.
The external hard constraints are strengthened, and the internal responsibility awareness needs to be improved.
The registration system entrusts most of the power of screening and recommending listed companies to intermediaries, which also means higher requirements for intermediaries to perform their duties and responsibilities.
The "gatekeeper" must adapt to the new situation under the registration system as soon as possible, continuously improve the quality and level of performance, strictly control the "selection" of projects, timely detect and dismiss defective enterprises, support qualified high-quality enterprises to go public, and provide investors with More valuable investment targets, and earnestly guard the "gate" of the capital market.
The issuer should also strictly control the "quality control" of the enterprise.
Although companies voluntarily withdraw from IPOs are generally not subject to regulatory penalties, if there are repeated "attempts to go public", it will inevitably have a certain impact on the company's credit and reputation.
Issuers need to raise their awareness. The registration system is not a lowering of the listing standards for companies. When the conditions are not mature, they have to try it out, even knowing that they are "ill". Only by truly strengthening your body and practicing your skills can you withstand the big waves of the capital market.
It is foreseeable that in the future, with the improvement of supervision and the continuous consolidation of the responsibilities of issuers and intermediaries, the withdrawal of IPO orders will become normal, and the pace of corporate IPOs will not be slowed down.
In the process of promoting the registration system reform to the whole market, the listing of new shares will still maintain a relatively fast speed and a high level, and more companies will use the A-share market to "accelerate" development.