A Research On IPO Pricing For X Pharmaceutical Co.in Sci-Tech Innovation Board

On July 22,about two years after the launch of the Sci-Technology Innovation Board,313 companies have successfully listed on the board.The successful establishment and the introduction of the registration system are of great significance to the reform of the capital market system,which can supplement the capital market and help scientific and technological innovation,and become an experimental field for changing the basic system of the capital market.In order to raise funds for the international pharmaceutical production line project,X Pharmaceutical Co.expects to be listed on the Science and Technology Innovation Board successfully.This thesis first introduces the domestic and foreign literature related to valuation and pricing,and then briefly describes the basic principles and steps of IPO pricing,as well as the valuation model suitable for the pharmaceutical industry.From the pharmaceutical industry and demonstrates the X medical condition two aspects the feasibility and rationality of medicine in SciTechnology Innovation Board IPO.In terms of valuation method,from the perspective of absolute valuation,we choose enterprise free cash flow discount method and economic value added method to measure enterprise value.The former converts all the income earned by the enterprise in the future minus the investment and the remaining cash flow after deducting the reinvestment into the current value of the enterprise at the discount rate,while the latter discounts the enterprise value from the net operating profit after deducting the capital cost.From the point of view of relative valuation method to select the value ratio under the market method,selected the 20 have an impact on IPO pricing reference indicators,through the correlation analysis of selected 17 affect pharmaceutical enterprise IPO pricing factor analysis,the key indicators of composite scores found by calculation and X medicine similar comparable companies,Through the average enterprise value multiples of comparable companies,the corresponding valuation of X Pharmaceutical Co.can be calculated proportionally.The enterprise valuation calculated under the three models is evenly divided into the expected number of shares to be raised,and the average IPO pricing obtained from this is the final forecast of X Pharmaceutical’s IPO pricing in this thesis.By analyzing the advantages and disadvantages of several pricing models and their applicable types,some suggestions on pricing for pharmaceutical companies about listing are given.