How To Pricing IPO Under The Registration System Background?

Under the background of the outbreak of IPO demand in China's Internet companies,the increasing willingness of the market to invest in the Internet industry,and the pilot registration system of the science and technology board,the Internet companies are gradually reducing the largescale IPOs in China.However,how to make reasonable IPO pricing for Internet companies is a difficult issue.This paper aims to explore the influencing factors and IPO pricing model of IPO valuation pricing of Internet companies under the registration system.The research logic of this paper is to study the IPO pricing model of Internet companies under the registration system by virtue of the mature IPO market rules of Internet companies in the United States and Hong Kong.Taking the IPO data of 59 Chinese Internet companies listed in Hong Kong and the United States in 2010-2019 as a research sample,the financial factors were extracted by principal component analysis,and the IPO pricing model was established by multiple regression analysis of financial factors and non-financial influencing factors.During the establishment of the Internet enterprise IPO pricing model,the relationship between the number of Internet users,the growth rate of users,and the status of the industry and the price of IPOs are analyzed.On the other hand,based on the aforementioned IPO pricing model,this paper also explores the rationality of pricing of IPO issue price,the difference of IPO valuation in different Internet segments,and the difference of IPO pricing between Internet companies under the registration system and approval system.The Research demonstrated that:(1)financial indicators such as operating income are still the main factors in the IPO valuation of Internet companies;(2)the industry status of Internet companies has an important impact on IPO pricing;(3)There are significant differences in the factors affecting IPO valuation pricing in various segments;(4)There are significant differences in IPO valuation pricing under the registration system and the approval system.Therefore,it is recommended that Internet companies should strive to improve their financial performance,choose a better market time,and conduct IPOs in the securities market that implements the registration system.