A Study On Influencing Factors Of GEM IPO Pricing In China

Since the growth enterprise market was opened in September 2009 in China,there are more than 300 enterprises successfully listed on the GEM.The launch of the GEM market has opened up a new financing channel for small and medium-sized high-tech enterprises.It is promoting the development of China's high-tech industry,upgrading the industrial structure and transformation of economic development model.This paper mainly studies the influencing factors of GEM IPO pricing.It will provide a reference for issuers and underwriters to set the price of IPO and promote the enterprises successfully listed on the GEM,so as to promote the capital market to allocate resources effectively and the GEM's long-term healthy development.On the basis of the analysis of the status quo of China's GEM and IPO Issuance system and the pricing mechanism,also combined with domestic and foreign IPO pricing theory and the pricing model,this paper first extracted various theoretical factors which affect GEM IPO pricing,then established a multi-factor model of IPO pricing through empirical analysis to study in detail the specific impact of these theoretical factors on IPO pricing.This paper found all the following indicators the market index which represents the macro environment,the asset-liability ratio which represents the firms' solvency,the earnings per share,the net profit margin of total assets and gross margin on sales which represent the firms' profitability,the growth rate of total revenue which represents the firm's growing capability and the ratio of capital expenditures and depreciation and amortization which represents the firm's value creation ability have a significant effect on the GEM IPO pricing.The other eleven indicators such as the average price-earnings ratio of the industry,the current assets turnover ratio,the inventory turnover ratio,the accounts receivable turnover ratio,the Current ratio and the quick ratio have no significant effect on the GEM IPO pricing.