Study On IPO Pricing

The company value and the pricing relates the multitudinous members of different social classes's economical benefit, develops the very important function to the entire social economy. The social economy long-term stable development needs the capital and the labor force continue to put. The company value directly affects investor's wish. The company value pricing rationality through affecting the investor wish affect one society's investment level, then affects the economical growth.The IPO pricing is the focal point which the multitudinous economic theory and the author pays attention to, and forms the company value and the pricing related theory. However these theories all are conduct the research from the different angle to the company value. The application stronger theory system until now do not have the formation. The company value until now puzzles the multitudinous investor, specially China's investor.The stock market of new China operating formally since 1990 has been more than ten years. The stock market of our country has gone through the issuing system , a series of frequent and great changes in basic systems of stock market such as pricing method , second marketing system , information announcing way ,etc..IPO pricing and mechanism change most heavy among them.My research and realistic thinking to the stock value and pricing relevant problems at this moment, offer theory support to IPO of China's securities market, have certain theory meanings; Today when " value is impuzzling ", the study of the thesis is important to issuing company , the masses of institutional investor and the individual investor , investment bank, strengthens the whole stock market including secondary market with the idea of value pricing at the same time, therefore has important realistic meanings. I hope to try my best for the sound development of the stock market of China in a thesis.The author first started from the company value and the pricing related theory, to discuss the pricing basic theory, proposed that suitably enhancing company debt rate may increase company value and market value. The company value theory and the idea passes through the entire paper, is this paper cornerstone. The pricing method has many kinds of apearane. Maturer and commonly used methods mainly include the DCF mathod, the relative valuation method and the option pricing method. Our country does not lack to the IPO pricing method, is short of suitable reseach to the pricing model. The paper has conducted application the research. Through suitable the multianalysis to each kind of pricing model characteristic which the condition carries on and compares, I concluded that the DCF a suitibal model for our market.The company value theories find company value fundamental factor having influence on company value, these factors are basic, stablest. They although could not determine the precise price, but actually decided model parameter, the model selection and the model parameter value. The paper analyzed these fundamental factors. The study of value theory and the pricing model to confirm the theory prices of the company. The pricing mechanism suitable for the security market can reflect the supply-demand relationship of the market on the basis of company's inherent value, and can find out the market price which reflects company's value. The paper has analyzed the gradual progress of issing system of our country, and various pricing way impacting on the issuing market. At last, the paper conclude: Based on market price, participating people (issue company, investor, investment bank) take as the leading factor in securities issue , the government fades out as soon as possible.The paper conducted the research by the real analysis way to the company IPO pricing effect finally. Besides carrying on the analysis from the underpricing angle to the Chinese securities market IPO pricing effect, the author also take the company value as the foundation, conducted more thorough research from the Chinese IPO premium angle to the IPO pricing. The research conclusion indicates: The Chinese IPO underpricing coexists with the premium.Through further studying, the paper conclude: The IPO price is much higher than the theory value. It's basic reason lies in the stock issuing supplies and the IPO pricing controling of the government.