Research on the IPO Listing Risks of Chinese Family-Owned Private Enterprises Based on a Rejection Case

ChunNgai To

doi:10.54097/bxcbnb48

Authors

ChunNgai To

DOI:

https://doi.org/10.54097/bxcbnb48

Keywords:

Family-owned private companies, IPOs, Internal control irregularities, Performance authenticity, IPO reboot.

Abstract

With the continuous improvement of the capital market and the trend of national economic development, China's IPO system has also changed in response to the country's circumstances and financial situation. Thanks to Chinese economic reform, more and more private companies want to IPO listing. In addition, most of these companies are family-owned private enterprises, which are the main group of IPO applicants due to their seniority and size. However, this type of enterprise started early, it still have many old and inadequate systems, as well as irregularities in disclosure and trading. These shortcomings will become the main risk of IPO failure. Shenghuabo Electric Co., Ltd. is a typical family-owned private enterprise, thus it will be used as an example for this paper. In addition, this article mainly analyses the reasons related to the enterprise's IPO being rejected, and gives corresponding solutions. The purpose of it is to provide assistance to family-owned private companies for future IPO listings.

Downloads

Download data is not yet available.

References

Vutharkar S, Swamy C A N, Hitesh K. Failed IPO Stories: Stories of Initial Public Offering [M]. AI-Driven Intelligent Models for Business Excellence. IGI Global, 2023: 112-123.

Zhang Zhenghui, Zhang Peng, Chen Dongda, Zhou Jin. Evolution of IPO Issuance Methods - From Approval System to Registration System [EB]. 2021(01).

Ruan Yueli. A Brief Discussion on the Impact of IPO Registration System Reform on Film and Television Companies [J]. Accountant, 2016 (9): 2.

Jiang Ling, Liu Tong. Case study of Jikai Gene's IPO rejection on the Science and Technology Board [J]. Henan Science and Technology, 2022 (16): 117-12.

Payne G T, Trudell L T, Moore C B, et al. Ambiguous signals and information asymmetry in the initial public offering process: Examining ownership concentration, process time, and underpricing [J]. Group & Organization Management, 2023, 48 (5): 1467-1502.

Gao Xiaomeng. Causes of SMEs' IPO Motivation Misconceptions and Their Countermeasures [J]. China's SMEs, 2022 (08): 77-79.

Xie Bilu. 2024 Shenghuabo for the first single IPO was rejected, its large dividend attracted market attention [N]. Economic Reference News, 2024-01-22 (003).

Sina Finance. 2023 January-July IPO withdraws the summary of enterprises, IPO was rejected five major causes [EB]. 2023-08-11.

Fan Qianqian. Dividend more than 300 million to raise 500 million to make up for the cash flow, Shenghuabo become the first IPO rejected in the beginning of the year [N]. Daily Economic News, 2024-01-23 (005).

Wang Lin. There are three companies on the meeting this week, Shenghuabo had been questioned for internal control irregularities [N]. Daily Economic News, 2024-01-09 (005).

Deng Feng. Analysis of the Problems of Information Disclosure of Listed Companies in China and Countermeasures for Improvement [J]. Journal of Changchun Finance College, 2024 (04): 5-9.

Cui Peng. Financial Problems and Improvement Measures in the IPO Process, taking Private Group Holding Enterprises as an Example [J]. China Business Review, 2019 (08): 177-178.