A Comparative Study On IPO And BL Of Private Enterprises

Since the reform and opening up,China's private enterprises obtain rapidly development at the same time,financing has become a major bottleneck restricting its expansion,so entering the capital markets to obtain low-cost equity financing has become the first choice for private entrepreneurs.Often,the listing method can be divided into direct listing(IPO)and indirect listing(backdoor listing),no matter what way,in the private entrepreneurs view that listing will bring ample capital inflow to the enterprise,provide a solid foundation for its follow-up development.However,is there a difference in the performance of private enterprises under IPO and backdoor listing? At present,foreign scholars have different empirical research on the performance of different listing methods,but most of our scholars are focused on the IPO or BL motivation and performance analysis,the two comparative study of the less,especially the national livelihood of the pharmaceutical manufacturing industry.Therefore,it is meaningful to study the private pharmaceutical enterprises under IPO and BL.In this article,taking the development of China's pharmaceutical industry as the research background,using supervise systems and policies of IPO and BL as a prerequisite for case study,Select the two companies which IPO way listed Sunflower Medicine and backdoor way listed Jingfeng Pharmaceutical,through a combination of theoretical review and case analysis to analyze the case: First of all,combining with the enterprise itself and the industry background,strategy and other aspects to analyze the internal and external motivation of Sunflower Medicine and Jingfeng Pharmaceutical listing;Second,comparing the listing process under the IPO and BL;Finally,comparative analysis the overall effect of equity concentration before and after the listing,financial performance after listing,market response after the listing,The final,combining the case to draw conclusions,summing up the private listed companies on the general inspiration.This article has some research found that: First,the concentration of equity,Sunflower Medicine in IPO that its stake is relatively concentrated,easy to achieve "convergence support effect",and Jingfeng Pharmaceutical in backdoor way that the decentralization of ownership structure will help to reduce agency costs after listing;Second,the operating performance,the first year of listing Jingfeng Pharmaceutical net assets yield is higher than SunflowerMedicine,but from the long-term performance point of view,Sunflower Medicine gradually go beyond it and profitability increased year by year;Third,the short-term market reaction,the Sunflower Pharmaceutical IPO investors to hold their wait-and-see status,2 days after listing the market reaction is better,and Jingfeng Pharmaceutical completed backdoor road twists and turns,investors have a high degree of enthusiasm before listing,then investors gradually rational heat has declined;from long-term market reaction,investors are more convinced that the IPO business through a rigorous review process,and Jingfeng Pharmaceutical industry due to the integration of shells need to continue to improve,investors are not optimistic about it.