Research On The Effect Of IPO Super-raised Funds Of Listed Companies

On October 30,2009,China officially launched the GEM market,and China's GEM market was also known as “China's NASDAQ”.What followed was the frequent occurrence of IPO over-raising.From 2009 to 2016,the GEM market listed 518 successful companies,and nearly 72% of these companies have IPO over-funding.According to the statistics of the planned fundraising amount and actual fundraising amount of the above-mentioned IPO super-financing phenomenon,371 enterprises plan to raise a total of 131.8 billion yuan,and the actual total fundraising amount has reached an astonishing 254 billion yuan.The ratio of fundraising reached 93%,which is enough to see the serious phenomenon of IPO over-raising in listed companies in China's GEM.Along with the serious phenomenon of over-raising,it is the poor use of super-raised funds by listed companies on the GEM.The huge amount of super-raised funds is idle in the bank accounts of listed companies on the GEM,but they cannot create the value they deserve.It affects the efficiency of capital allocation in the capital market.The reason why this happens is because although the companies listed on the GEM are mostly companies with good development prospects,it does not mean that the company has the ability to manage a large amount of funds beyond the planned fundraising at this stage.The super-raised funds will induce problems such as blind expansion and excessive investment,which will eventually lead to poor use of super-raised funds.It is meaningful to study the problems existing in the process of using super-raised funds by listed companies and how to improve the use of super-raised funds by listed companies.It is meaningful for the development of listed companies and the overall efficiency of capital allocation in China's capital market.In view of the frequent IPO over-raising phenomenon of listed companies in China's GEM market and the poor use of super-raised funds by listed companies on the GEM,Chinese scholars have also carried out many studies and put forward corresponding views.The over-raised funds will induce blind expansion and over-investment,which will adversely affect the long-term development of the company.On the other hand,excessive over-raising ratio may lead to a large amount of over-raised funds being idle,thus reducing the capital allocation of the entire capital market.The efficiency of the stock market has a negative impact on the healthy development of the securities market and the smooth operation of the entire national economy.This paper selects Dangsheng Technology as a research case to systematically analyze the use effect of Dangsheng Technology's super-raised funds from 2010 to 2016.From the internal motivation and the external motivation,the motivations of the over-funding of Dangsheng Technology are summarized.Among them,the internal risk is due to the high debt risk and the market share is increased.The external action is due to the insufficient supervision of the securities intermediaries and the IPO of the GEM.The pricing mechanism is unreasonable.Next,this paper uses the financial index analysis method,investment income analysis method and event research analysis method to analyze the use effect of Dangsheng technology super-raised funds.It is found that there are four problems in the process of using the super-raised funds: the over-raised funds are not used as planned;the investment projects have not achieved the expected returns;the over-raised funds permanently replenish the working capital and repay the bank loans.Super funds are idle.In response to the above problems,this paper puts forward corresponding suggestions and draws conclusions.At the same time,this paper also summarizes the places that Dangsheng Technology deserves to be learned by other companies in the process of using super-raised funds.There are two main points:(1)In the process of using super-raised funds,the use of super-raised funds The disclosure of information is detailed and accurate,and there are no misleading statements or major omissions;(2)Reasonable development strategy planning,planning from the perspective of long-term development of the company when formulating the use plan for super-raised funds.For other listed companies that have IPO over-raising financing,the above two points have a certain degree of reference and reference value.