The Analysis On Factors Affecting The IPOs Pricing Of GEM

The startup of Gem market in Shenzhen Stock Exchange provides a listing financing channel for Chinese SME, especially the small and medium-sized company growing highly. Since there is a clear distinction between the Gem and the small and medium-sized board in Listing Rules, how to price the companies when they prepare to IPO is important. There is obviously higher-priced, high p/e ratio when the first batch of Gem IPO. Therefore, it is necessary to find the factors which affected Gem listing pricing. In order to find the factors affecting IPO pricing, we try to build the multiple linear regression model. At the same time, the different factors affecting the pricing of IPOs among the Gem,the small and medium-sized board and the mainboard were compared.Using the internal and external factors as independent variables, the article builds IPO Pricing Multifactor Model by Stepwise Regression Method. The research shows that:net asset per share and net asset yield significantly influence GEM,small and medium-sized board and mainboard IPO pricing, while the indexes of asset-liability ratio, pricing power, profit level which reflecting enterprise solvency, underwriters pricing power, industry profit level indicator respectively do not appear in the three final pricing model. The main difference of multiple linear regression pricing models among Gem,small and medium-sized board and mainboard is that topix index has significant influence on the Gem,small and medium-sized board pricing, but no significant influence on the main board pricing; eps profit-making cash flow has significant influence on the Gem,small and medium-sized board pricing, total asset turnover has significant influence on the mainboard pricing, business income growth has significant influence on the mainboard pricing, issue size has significant influence on the small and medium-sized board pricing.In this study, we show that the pricing factor differs according to different development stages in the company. For example, the company in their initial stage, investors pay more attention to its risk, however, in the mature stage, its operating conditions is more concerned.