The Research On IPO Pricing Multu-factor Model Of GEM-listed Companies In China

Initial public offerings of listed companies is an important way for a Company Limited to expand the scope of shareholders’equity into public ownership. IPO pricing is reasonable or not related to the issuers, investors and underwriters vital interests, impact the conversion between the market and the secondary distribution market, and also affect a country’s capital market efficiency of resource allocation directly. The listed company’s IPO premium refers to the listed companies to issue new shares in public offering price of the course there are some undervalued issues, focus on the performance of the IPO price significantly lower than the shares traded on the first day’s closing price, investors only need to subscribe shares in the IPO on the first day to obtain a certain return over a phenomenon, and the efficient market hypothesis, there are some conflicts, financial call it "IPO puzzle." Shares of newly listed companies on how to give a reasonable valuation and pricing of a troubled sector of the theory and practice focus.IPO pricing in developed countries on the basic theory and practice of research started earlier, in the actual application process also produced good results. Our researchers have tried to many foreign countries have established financial theory is used in the process of China’s securities market offering price, but because of the special background of China’s securities market and capital market development during the special period, IPO pricing theory in our country did not achieve the desired the effect. October30,2009GEM at the official opening of the Shenzhen Stock Exchange trading, after more than two years time, GEM IPO issue premium for firm-specific risk to market mechanisms and operating mechanisms and become very prominent.This study targeted a GEM listed company, from2009selected October to May2011GEM218in stock for the analysis of The sample. Relatively mature in foreign-related IPO pricing theory-based Basis, the first qualitative analysis method to identify the impact of IPO pricing Internal and external factors affecting the collection of corporate issuers and the public disclosure prior to listing Open information and other relevant information. Then use factor analysis approach. Variable data based on the extraction of the main factors, then the use of gradually Regression method of issuing new shares listed on the first day closing price for linear regression Return, the establishment of multi-factor model of IPO pricing.In order to get better use of the new model, this model is created on the basis of selection in September after a few stocks listed on the empirical test.