Research On Company H's IPO Project Risk Management

The Chinese stock market was formally established in the early 1990.After twenty years' rapid development,the Chinese stock market is treated as one of the biggest stock markets in the world.As an important found rising channel,more and more enterprises want to draw capital though IPO project for their further development.But comparing with western mature stock market,Chinese IPO issue system has a lot of difference.The IPO project is very time-consuming and costly,many stakeholders are involved.These factors make the IPO project very risky.Based on the reality,the IPO project risk management is very meaningful for the applicant.Company H conducted its IPO project in 2008.After five years' preparation,the project finally failed in 2013.The total cost of the project is more than 40 millions.This paper analyzes the IPO conditions of Company H and points out that the reason of failure is lack of project risk management.The paper uses dynamic risk management theory and project lifecycle theory to analyze the risk management during the Company H's IPO project.The research tries to point out the main risks lead to the failure and gives the recommendation for Company's IPO project risk management.The contribution of this paper and innovation is to make a deep analysis of the risk faced in the IPO project and the potential results by using dynamic risk management theory and project lifecycle theory.This paper is meaningful for Company H to build a complete project risk management system.It's also helpful for the company to manage the risk during its second attempt for IPO.The case can be used as a good reference for other company who wants to conduct IPO project.