After the “Broken Halberd” science and technology board: fight again or change course?How to choose different sectors?
Since the cancellation of the science and technology board in March last year, it has been its first anniversary. More than 200 companies have replaced the application for the listing of the science and technology board, but 25 companies have also been terminated, and the road to the first IPO of the science and technology board has ended.However, many companies choose to fight again. Up to now, six companies have restarted their IPOs, some of which turned to the GEM and some re-sprinted to the science and technology board.Six companies restarted the IPO or transferred to the GEM, or sprinted to the science and technology board to terminate on March 24. Of the 216 companies replaced by the Shanghai Stock Exchange, a total of 25 terminated the audit status.Among the companies that failed to hit the science and technology board for the first time, some did not give up the IPO, but started the second round of sprinting.Sauna and Yenet are reported to have incomplete statistics. As of now, six companies that have terminated audits have restarted their IPOs, including Papaya Mobile, Zoomlion Data, Titan Technology, Yuandong Biological, Haitian Ruisheng, and Jindal.Among them, some companies have shifted their IPO goals to ChiNext.The most representative is Papaya Mobile, the first enterprise to terminate the audit of Science and Technology Board.The Shanghai Stock Exchange replaced the Papaya Mobile Science and Technology Board’s issuance and listing application on March 29, 2019, and then terminated its issuance and listing review on July 8 of the same year, because the issuer and the sponsor withdrew the issuance and issuance application.On February 28 this year, Papaya Mobile appeared in the list of counseling companies publicized by the Beijing Securities Regulatory Bureau. Papaya Mobile’s new IPO target changed its listing place to the GEM. The counseling agency is still the tractor cooperation Zhongtian Guofu Securities.Similar to Papaya’s mobile situation, China Unicom data is also available.The audit of China United Data was terminated on October 31 last year. Only two months later, the Beijing Securities Regulatory Bureau publicized the counseling record of China United Data. China United Data is planning to be listed on the GEM. The counseling agency is Huatai United Securities.There are also some companies with different choices. After the first impact on the Science and Technology Board IPO, the companies chose to fight again, including Titan Technology, Yuandong Bio, Haitian AAC, Jindal.Among them, Titan Technology was terminated on September 26, 2019.On March 18 this year, the company issued an announcement, intending to apply for the listing of the Science and Technology Board again, the relevant name has been approved by the board of directors, and it is planned to replace it at the temporary extraordinary general meeting on April 2.The reporter noticed that, with the first declaration of indicators, Titan Technology’s second application for science and technology board listing raised funds increased by 1.200 million US dollars, a new project of process development center was added to the fund.The other three companies, Haitian Ruisheng, Yuandong Biological, and Jindalai, have already filed for listing counseling at the local securities regulatory bureaus.Among them, Haitian AAC’s first road to the science and technology innovation board can be said to be only “one step ahead”. It has completed the inquiry process in the early stage and is about to attend the meeting.The audit was terminated on July 26.On February 28 this year, the website of the Beijing Securities Regulatory Bureau announced the listing counseling of Haitian AAC. Haitian AAC plans to sprint the science and technology board again.Is the second shock IPO a higher success rate?If the attributes of Kechuang are not enough to meet the requirements, from the reasons for the termination of the audit, in addition to Titan Technology’s failure to pass the meeting expected by the listing committee, the other five companies can take the initiative to “withdraw orders.”In fact, this is also the most common reason for the termination of the audit of the science and technology board. Of the 25 companies that have terminated the audit of the existing science and technology board, only Guoke Huanyu, Titan Technology, and Bola Network have failed to go through the marketThe committee held a meeting to terminate the review, and the remaining 22 participating companies took the initiative to withdraw the listing application materials.However, some investment bankers said that even if the company voluntarily withdraws the order, it is mostly due to the pressure of the preliminary inquiry and review, or the result of communication with the regulatory department.In other words, regardless of whether the company withdraws the order or whether it will be rejected, the reason for the termination of the audit is that the company itself has some problems that do not meet the requirements of the Science and Technology Board.So for these companies, will the second sprint science and technology board IPO encounter the same problem?Wang Jiyue, a former senior sponsor representative of a securities firm, told reporters that the success of the second shock IPO depends mainly on whether the previous regulatory concerns have been resolved.If it is a flaw in information disclosure, or it can be improved in finance, corporate governance and other issues, it can be resolved before the second initial public offering.For many companies, a common reason for the termination of the democratic science and technology board is that science and technology attributes are not enough, which cannot be solved in the short term, so the second impact of the science and technology board IPO may also be difficult to change the results.For example, after Papaya Mobile announced that it intends to establish a science and technology board for listing, it has been questioned by many parties in the market, including the main business from advertising to big data, and the technology is not “hard”.Before withdrawing materials, it has experienced two rounds of inquiries. The focus of the review center of the Shanghai Stock Exchange basically covers major market queries, such as core technologies, business substance and business models, and the impact on major customers.Papaya Mobile’s secretary-general, CFO Zhao Jutao once told the sauna and Yewang that the main consideration for withdrawing the application for the listing of the science and technology board is whether the company is in line with the positioning of the science and technology board.Titan Technology has been repeatedly asked about the OEM production model, core technology advancement, etc. in the preliminary review stage. Even at the meeting, it still needs to face inquiries from the Listing Committee on these issues.In the end, the Listing Committee believes that Titan Technology can accurately replicate the business model and business substance, but also accurately reveal the core technology and its advanced nature, as well as the production and operation of the main core technology, and produce a vetoed alternative opinion.More importantly, on March 20, the Japan Securities Regulatory Commission just released the “Technology Innovation Attribute Evaluation Index (Trial)”, which proposed a specific and clear science and technology attribute evaluation index system, including research and development, quantitative indicators quantitative standards,Enterprises must meet the requirements of relevant indicators before they can be regarded as having the attributes of science and technology.For enterprises with insufficient science and technology attributes, under the new evaluation system, even if the information display method is changed to improve the display range and accuracy, it is difficult to meet the requirements.So, can switching to other IPOs increase the success rate?Wang Jiyue said that as long as the problem is solved, the success rate of the company’s second meeting will be very high. In addition, the GEM does not highlight the science and technology attributes, so the switch to the GEM IPO may increase the success rate.Another investment banker said that in fact, companies may have some judgments about whether they can not pass before the initial public offering. Since they have chosen to switch to listing, it is generally because companies and intermediaries have considered that the sector has the highest cost performance and comprehensive conditions.The method, coupled with the second IPO, basically solved the Air Force problems, so in theory, the pass rate will increase after changing the plate.In fact, many companies’ original listing targets were other sectors. The preliminary preparations were carried out according to other sectors. However, the science and technology board was born and had certain reform dividends, so many companies were redirected to the science and technology board for listing.For example, Papaya Mobile’s initial listing target was GEM.In October 2017, it signed a GEM listing counseling agreement with Zhongtian Guofu Securities. The counseling lasted for one and a half years. By February 2019, it published the seven counseling work reports, and basically already had the conditions for issuance and listing.In March 2019, when the basic rules and systems of the Science and Technology Board were just reorganized, and the Shanghai Stock Exchange no longer began to re-apply for enterprise declarations, Zhongtian Guofu Securities proposed to the Beijing Securities Regulatory Bureau that Papaya Mobile ‘s initial public offering of shares was changed from GEM to Science and Technology Board.Go public.Therefore, the transfer of the Science and Technology Board to the GEM after the termination of the audit is a return to the original path for Papaya Mobile, which is more “familiar.”How to choose different sectors?Enterprises should consider their matching with various markets into the reform of the Growth Enterprise Market, the reform of the New Third Board is accelerating, and enterprises have more extensive optional listing targets.The next step in the reform of the registration system will be to deliver the GEM, and the New Third Board has established a direct transfer system, which is also a great shortcut for companies to go public.Does this mean that the appeal of the science and technology board will be weakened?In fact, in terms of the basic system, the Science and Technology Board still has certain advantages.From the perspective of listing conditions, although the scientific and technological board has relatively higher numerical requirements for relevant indicators than the GEM and the new third board selection layer, it is flexible, with different indicators such as market value and net profit, revenue, cash flow, R & D investment and other indicators.The combination is not good at making profits, and it is more targeted at growing science and technology startups.From the point of view of the listing review process, the Science and Technology Board’s review is more efficient and takes time to replace. At present, it is basically within 10 months from replacement to listing, which is equivalent to the fact that companies under the traditional approval system are frequently queued for two or three years. The situation is greatly shortened.At present, the relevant policies for the reform of the GEM registration system have not yet been released, and the reformed listing standards have not yet been clarified.On March 1, this year, the new “Securities Law” was officially implemented. The Shenzhen Stock Exchange will promote the implementation of the registration system reform as the top priority, give full play to the successful experience of the Science and Technology Board, and promote the overall plan for the public issuance of the registration system on the GEM pilot stocks.Improve the issuance and listing, information disclosure and other systems to expand the inclusiveness and coverage of the sector.Lin Wan, an analyst at Shen Wanhongyuan, said that the GEM registration system has a continuous and wide-ranging positioning, and the listing standards may be hierarchical.According to the Shenzhen Stock Exchange’s statement of “expanding the inclusiveness and coverage of the sector”, considering that the establishment of GEM is to support small and medium-sized innovative growth companies, it is initially expected that the GEM registration system may pay more attention to the growth attributes of companies in listing positioning, rather thanDevelop industry attributes.The listing door information may also be differentiated and hierarchical with the science and technology board.Another option for “hot hand” is the new three board selection layer. The promotion of the selection layer has significantly accelerated this year. The policy for the transfer of the board has been released, and there are already companies planning to list on the selection layer.The selection layer entry standard is lower than that of the Science and Technology Board, and it is more suitable for SMEs that are currently listed on the New Third Board.In terms of institutional rules, companies can first issue a public offering, transfer to the board for direct listing after one year of listing on the select layer, and the restricted sales period of the shares after the transfer can be replaced by the restricted sale time at the selected layer, which is also aThe big advantage.Among the above-mentioned companies that restarted the IPO, Jindal was the first new third-board company to declare its entry into the science and technology board. After its audit was terminated on November 20, 2019, there was considerable external speculation that Jindal may returnThe New Third Board is competing for the selection layer.But in the end, Jindal chose to fight the science and technology board again.Zhang Keliang, general manager of Intime Securities’ stock reform system business department, told reporters that for the choice of GEM, Science and Technology Board and New Third Board selection layer, companies should fully consider the matching of their own growth stage, scale, industry attributes and various markets,At the same time, considering the success rate of the issuance and listing, operability, time and administrative costs, as well as its own internal advantages and disadvantages, it is a rational choice.For the mature period, the expansion of the volume of income and profit volume, the sustainable operation capacity and the future with high certainty of the enterprise can directly report to the Science and Technology Board or the GEM IPO, and for the current NEEQ companies, direct public offeringThe cost of entering the select layer.The transfer mechanism of the NEEQ is currently in the pilot stage. Qualified companies listed on the NEEQ can apply for transfer to the Science and Technology Board of the Shanghai Stock Exchange or the Growth Enterprise Market of the Shenzhen Stock Exchange.The transfer board listing is reviewed by the exchange and does not require approval or registration by the CSRC.This will also force the reform of the GEM registration system to accelerate.The Shenzhen Stock Exchange has stated that it strives to achieve a seamless connection between the rule system and the new “Securities Law” by the end of 2020, which also means that the supporting institutional arrangements for the pilot registration system of the GEM may be launched before the end of this year.Sauna, Ye Wang Gu Zhijuan Editor Li Weijia Proofreading Liu Jun