A Case Study On The IPO Break Of Yangyuan Drinks

The company IPO listed can guarantee raise the funds financing required,guarantee the market participants to get bonuses,promote the rational allocation of capital market and promote the healthy development of stock market.At the same time,many market participants tend to think that the primary market is a risk-free market,and actively subscribing for new shares is their favorite way of investment.At present,China is still in the stage of capital stock market development,and the new stock issuance system is not perfect.After the stock issuance in the stock market,the phenomenon of breaking through occurs from time to time.According to statistics,71 of the 540 listed stocks have closed below the IPO price from the beginning of 2017 to the finial of 2018,which is in a breaking state with a breaking probability of 15%.The break-up of new shares not only represents the rational return of capital market,but also brings some negative effects to the whole stock market.Therefore,study the issues related to IPO break-up is of great significance for guiding listed companies to avoid new share break-up rationally,protecting the interests of market participants,maintaining the sustained and healthy development of the securities market.Firstly,this paper introduces the background and significance of the research,and summarizes the influencing factors of IPO break-up at home and abroad and the response of IPO break-up market.Secondly,it introduces the relevant theories of IPO break-up,including the definition of IPO break-up,the difference and comparison with IPO break-up on the first day,the current situation of IPO break-up and the theoretical basis of IPO pricing and valuation.Thirdly,taking Hebei Yangyuan Zhihui Drinks Limited company as a case company,this paper makes an analysis of the present situation of the prospectus and annual report issued by the case company separately before and after its listing in February 2018,including the process of IPO,the content of IPO pricing and the process of IPO breaking,and sums up the influencing factors of the phenomenon of IPO breaking,such as the high issue pricing of the case company;there are fluctuation risks in the operating income and net profit of the company;there are risks in the securities market environment when the company lists;and there are risks in the reputation of sponsors and underwriters.Finally,in view of the current situation and existing problems of the securities market faced by the planned listed companies in China,the construction of laws and regulations for the issuance of new shares,the quality of listed companies,the sense of responsibility of third-party institutions,the protection and construction of small and medium-sized investors,puts forward some suggestions for the improvement of the securities market faced by the planned issuance of new shares.