Study Of GEM IPO Price Based On Industry Earnings

For the issue of underpricing phenomenon GEM emerging market regulators and investors have been concerned about the market, but the underpricing phenomenon continues unabated, underpricing phenomenon causes are many, in addition to market investors operations and sought outside, IPO pricing is unreasonable one important reason. In this paper, the GEM IPO pricing irrationality explored and research, hoping to find a model to quantify the GEM IPO, so that the issue price of the stock reflects more of their own value, not deviate from this a reasonable value. Reduce the fair value of the deviation is the purpose of this article was originally. Construction of such a model can provide the basis for a reasonable price stable and healthy development of the GEM market, but also to create a more equitable investment environment for investors.The paper is divided into six parts, the first part of the study describes the background and significance of the current IPO pricing related theories are introduced, and the model provides theoretical support for the construction below. The second part focuses on the Growth Enterprise Market of the relevant information on the growth enterprise board and the board for the relevant comparisons, and hope to find a particular pricing model for the purposes of the GEM, the third chapter introduces the concept of industry earnings hopes PE industry can use to replace the earnings of listed companies, industry earnings form the basis of the proposed model. The fourth chapter focuses on the process of building the GEM IPO pricing model introduced adjustment coefficient in the process, I hope for the same in different industry sectors listed companies earnings adjustment and changes in order to be more suitable for the corresponding listed companies. Chapter V as a validation of the model, the computer industry to find a company listed on the GEM market, its model validation, the model evaluation. The sixth chapter is the full text summary and outlook for the future related research.Focus and innovation of this paper is to use industry earnings to build for the GEM IPO pricing model, through construction and validation, concluded that the model created for this article on our current GEM pricing is effective and close to the market price, stand the test of time.