Impact of IPO Tightening on Mergers and Acquisitions Market

Dongqi Yang

doi:10.54097/4s620d21

Authors

Dongqi Yang

DOI:

https://doi.org/10.54097/4s620d21

Keywords:

IPO; Mergers and Acquisitions Market; Policy Tightening; Case Analysis.

Abstract

This paper delves into the impact of IPO policy tightening on corporate mergers and acquisitions (M&As) in the context of the China Securities Regulatory Commission's phased tightening of IPO pace and promotion of a dynamic balance between investment and financing. Through literature review and case analysis, this paper demonstrates the significant financial growth and business synergies brought by mergers and acquisitions. However, with the economic downturn and the improvement of audit standards, corporate financing behaviour has become cautious, and investment institutions have become more selective in choosing projects. Some companies that rely solely on a single major customer or have other risks have lower competitiveness in listing. In contrast, stronger companies like Hive Energy are still able to consider other financing options after withdrawing their IPO applications, demonstrating a good development trend. The research results of this paper help to understand the impact of IPO policy tightening on corporate mergers and acquisitions.

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