The Research About The Influence Factors Of The GEM’s IPO Ultra Raise And Management Strategy

The GEM market in China officially launched in2009, October, has been more than three years since then. By the end of2012, there were355companies successful listing on the GEM market, and that have solved the problem of their funding needs. However, with the development time of China’s gem market grew, the number of companies listed on GEM and years of gradual increase, the exposed problem is gradually increasing, and some problems can no longer be ignored by us. According to statistics, by the end of2012, the gem IPO plans to raise87.495billion yuan, the actual number reached to231.455billion yuan, funds raised in excess of the total143.96billion yuan. The presence of such a huge amount of raised funds seriously affects the social order, causes uneven allocation of resources, a large number of idle resources or inefficient using, and disrupts the market order. Also it makes GEM evolutes "misappropriating board" and causes the stock market turmoil at the same time. The fundraising solves the problem of lack of funding, but the huge amount of IPO raised funds give listed companies problems, and brings new risks simultaneously. In view of this, the research of GEM IPO raised is essential.In order to solve the issues of the GEM companies IPO raised reasonably, it is necessary to explore its impact factors. With the theoretical basis and analysis, the article sums up the total of ten influencing factors belong to the enterprise and outside the enterprise.355companies listed on GEM listing before the end of October2009to the third quarter of2012have been selected as samples. It uses the methods of combination of theoretical analysis and empirical testing to multivariate linear regression about screened sample data. Then it ultimately concludes significant factors about GEM companies IPO ultra raise, such as the size of the company’s total assets, ownership concentration, solvency, the issue of price-earnings ratio, listed on the first day turnover and the IPO price and the issue of the number of shares.The study concludes that both internal and external factors have influence to GEM companies IPO ultra raise. Therefore, the suggestions are put forward from both company itself and market level. About company itself, the countermeasures include developing fund-raising plan scientifically, optimizing the structure of corporate governance, broadening financing channels, increasing debt financing, strengthening information disclosure and regulating their own behavior. For the side of GEM, political recommendations include following three levels: regulatory authorities, intermediaries and investors.