Research On The IPO Of The Western Superconducting Transfer Board STAR Market

National Equities Exchange and Quotations(commonly known as New OTC Market)is an important part of China’s multi-level capital market,and is also an important place for small and medium-sized enterprises to finance.The New OTC Market has played an important role in economic transformation and scientific and technological innovation as well as improving the financing of small and medium-sized enterprises.However,the new OTC market has gradually exposed the problems of insufficient liquidity and low financing efficiency of listed companies while developing vigorously With the continuous growth of listed companies,the new OTC market can not meet the financing needs of the company,so more and more companies seek to list in the capital market at a higher level.In 2019,the Science and Technology Innovation Board(STAR Market)and a pilot registration system were established,adding a new channel of "transfer board" for the new OTC market companies.Within a year of the establishment of STAR Market,more than 50 new OTC market companies lined up to "transfer" to STAR Market and accept the examination,but the proportion of new OTC market companies is higher among the IPO companies that fail in STAR Market.In view of this phenomenon,this article will discuss how the new OTC market companies should choose the "transfer board",and how to conduct "transfer board" risk management,which can bring enlightenment to the new OTC market companies that is planning the "transfer board".Taking the new OTC market company,Western Superconducting(688112.SH)as a case study,which is the fastest to attend the meeting and the first company that has not been delisted in the new OTC market but has successfully entered the STAR market,the paper adopts the methods of comparative study,literature analysis,case analysis,quantitative analysis and qualitative analysis to conduct the study.Strictly speaking,this case is not a "transfer" in the general sense after the implementation of the transfer mechanism,but it has realized the "seamless connection" between the New OTC Market and the STAR Market.The advantage of this approach is that even if the IPO of STAR Market fails,it can also reduce the risk of enterprises.But it will increase the cost of information disclosure,and the issue price will also increase the pricing risk because of the "anchor" of the New OTC Market.Focusing on the research on the motivations of the Western Superconducting’s "transfer",on the premise of meeting the listing conditions of each A-share market,it chose the STAR Market.And how to carry out risk management in the process of "transfer " of the STAR Market,and finally discuss the changes brought about by the successful "transfer" of the STAR Market.It is found that under the constraints of financing efficiency,liquidity limitation and low valuation of the new OTC market,Western Superconducting seize the opportunity of the establishment of STAR Market,made full use of its own "Science and Technology Innivation" attribute,and chose "transfer" IPO to the STAR market,which is more relaxed in issuance conditions,higher in issuance efficiency and more flexibile in pricing mechanism.In the face of the general potential risks of the "three types of shareholders",information disclosure and other new OTC market "transfer board"-STAR market,reasonable arrangements and treatment were made in advance.After successfully entering the STAR market,it has brought improvement to the financing capacity,stock liquidity and valuation of the enterprise.The average monthly turnover rate of Western Superconducting stocks has increased by 279 times,and the stock market value has increased by 2.84 times.The results bring some enlightenments: first,Western Superconducting’s smooth "transfer" IPO to STAR market benefited from the institutional design of STAR market in additon to its own excellent enterprise qualifications.The institutional design of STAR market will help outstanding new OTC market "science and technology innovation" enterprises to stay listed in China,and also help the healthy development of the new OTC market selection layer;second,Western Superconducting has been strictly implementing the information disclosure system,laying a solid foundation for the successful "transfer".The new OTC market companies should pay attention to information disclosure in the long run,which helps to speed up the process of "transfer" IPO,and also can improve the financing efficiency of the companies;third,establishing and improving the transfer mechanism can reduce the delisting behavior of the new OTC market companies,protect the interests of investors and enhance the activity of the selection layer;finally,the fundamental reason for the high-efficiency "transfer" of Western Superconducting is the excellent quality of the company.New OTC Market can effectively reduce the risk of "transfer" by improving the quality of the company.