Research Of The IPO Financing For Xi'an Aviation Industrial Base Development Center

The Xi'an Yanliang National aviation hi-tech industrial base, founded in the background of the government's cleansing and straightening of the development zones in China, is the exclusive national development zone of aerial industry. Bearing the great hopes granted by the nation and Shaanxi province, the base's construction came across a number of problems in the process of its financing. It's necessary to design a new financing model to bring its development within the orbit of capitals' benign cycling.Financing is a significant issue, being faced in the development of an enterprise. The financing models of different enterprises are distinct due to their variety of industries, types and sizes. Therefore, it's very important to set up a financing model for an enterprise in accordance with its own specialties in order to make efficient use of capitals and reduce the amount of the operation costs. In this report, the research and analysis of internal factors, external factors and the financing model for the development center of the Base, the research object, was conducted carefully. A certain amount of risks, such as policy risk, interest rate risk, financing channel risk and operational risk, which are confronted by the sole financing model—bank loan model—in the aerial base's current operation and management, are pointed out. Where after, being directed by the basic theory of financing mode and integrated with the realistic situation of the aerial base, the idea of taking the development center served as the financing platform to make reform joint-stock scale and finance by way of IPO is brought forward to resolve the problem of sole financing model and financial burden which is much too heavy in the development of the Base. In the process of design the direct financing model of the development center, the idea of IPO financing, its process and methods are designed, applying quantity analysis method, quality analysis method, cost analysis method and simulation measuring and calculation methods, with reference of the related national laws and statutes. Meanwhile, the arguments of the model's necessity, theoretical feasibility are made, along with its particular operation model. According to the theoretical financing amount calculated in strict hypotheses, a conclusion is drawn that the financial risks faced in the development of the Base's infrastructure can be resolved by using the financing instrument IPO.This report is of a certain applicable worthiness of perfecting the capital structure of the development center, by way of its direct financing. Meanwhile, it could also be taken as a reference in making judgments of risks in financing and the choice of the countermeasure.