Loss listing becomes a reality, IPO is more tolerant and the threshold for delisting must be further reduced
Before the high-level executives proposed the establishment of a science and technology innovation board and a pilot registration system, a company must meet the two conditions of the same stock and the same rights and achieve profitability in order to be listed on A shares. Among them, the same equity and same rights used to be the "core values" of the A-share market, and the AB equity structure was not accepted; while achieving profitability is the threshold that companies must go through to get listed, even if the GEM IPO conditions are slightly looser, There are also requirements.
But the establishment of the science and technology board has broken this "tradition". The science and technology board not only allows companies with different shares in the same company to be listed, but also allows unprofitable companies to go public. In addition, in order to accept the listing of high-tech industries and strategic emerging technology industry companies, the science and technology board also set five sets of listing standards. . The fifth set of listing standards is expected to have a market value of not less than RMB 4 billion. The main business or products need to be approved by the relevant state departments. The market space is large, and staged results have been achieved. Pharmaceutical companies need to have at least one core product approved for Phase II clinical trials. Other companies that meet the positioning of the science and technology board need to have obvious technical advantages and meet corresponding conditions. It is precisely the fifth set of standards that Zeyu Pharmaceuticals adopts.
In addition to Zeyi Pharmaceutical , other five companies such as Biotech , Junshi Biotechnology , and Divine Cell that want to be listed on the science and technology board use the fifth set of standards. These companies all have certain things in common, such as the biopharmaceutical industry, strong R & D strength, large investment in R & D, and unrealized (large-scale) profit. Therefore, the fifth set of listing standards for the science and technology board is also interpreted as tailor-made for innovative drug companies.
On June 10 last year, Zexun Pharmaceutical became the first company listed on the Science and Technology Innovation Board to adopt the fifth set of standards. On October 30, it was reviewed and approved by the Shanghai Stock Exchange Science and Technology Board Listing Committee, and on December 31, 2019, the Securities Regulatory Commission agreed to register. . Compared with other companies, it has taken a little longer from the review and approval of the Listing Committee to the approval of the Securities Regulatory Commission. In fact, it also illustrates the prudent attitude maintained by the regulatory authorities regarding the listing of loss-making companies.
Set up five sets of listing standards, loss-making companies that meet the sector positioning and companies with different rights in the same share can also be listed on the science and technology board, which also highlights the inclusiveness of the conditions for the listing of science and technology board companies. In fact, the A-share market has become more and more tolerant of corporate listings. From the initial requirements of the main board for three consecutive years of profitability, to the relaxation of profit standards on the GEM, and the acceptance of loss-making companies by the science and technology board, the inclusiveness of the IPO has also allowed more companies to list on the capital market.
I personally think that with the success of various pilot projects of the Science and Technology Innovation Board, it will be very likely that the GEM and even the Main Board will accept other types of companies to be listed on more inclusive conditions in the future. The key to the problem lies in the issuer's information disclosure. The market-oriented issuance of new shares will be the trend. Under the market-oriented issuance mechanism, the issuance price, scale, and rhythm of an enterprise are subject to market constraints, and the market mechanism will fully play its role. As long as the issuer fulfills its full disclosure obligations, the rest will be left to the market. Whether investors vote with their hands or with their feet will determine the success or failure of an enterprise's issuance.
Whether it is the Science and Technology Innovation Board or the future GEM and Main Board will accept multiple types of companies on more inclusive conditions, while the market opens the door for more companies to go public, it is also necessary to open the door for companies to delist. window. When the IPO conditions are more tolerant, it is clear that the threshold for companies to delist is also necessary to be further reduced. Otherwise, you will fall into the predicament of being easily delisted and difficult to be listed. Moreover, in the context of the full promotion of the registration system, more inclusive IPO conditions do not rule out that companies of ordinary texture and lack of growth can also successfully go public through market selection. In this way, there may be a scene of junk stocks blooming in the market, and the stock market "undead bird" will prevail in the market, obviously this is not what we want to see.