Comparison Of Finaning Of Biopharmaceutical IPO Companies Under The Parallel Registration System And Approval System

China’s stock issuance review system has undergone many changes since its establishment,and has achieved a dynamic balance between the game of free capital and government power.In recent years,as high-tech industries have gradually become the pillars of the national economy,the registration system has been put into practice on the science and technology board because it is more adapted to its industrial growth path,and has a strong industry focus attribute.As a typical high-tech industry,the biopharmaceutical industry is facing the dilemma of "big but not strong" in my country due to the contradiction between its high-intensity funding needs and narrow financing channels.It is worth noting that the change from the approval system to the registration system is not achieved overnight,but a step-by-step strategy to expand from the Sci-tech Innovation Board to the Growth Enterprise Market and then to the main board market in the future.In the course of such reforms,a stock issuance system with a parallel approval system and a registration system has emerged,which also provides a rare window for our research.Therefore,this article focuses on the financing behavior of the biopharmaceutical industry,selecting two cases listed on the Science and Technology Innovation Board and the Main Board as the research objects,and comparing the financial status and financing behavior before and after the listing.The direct purpose is to: 1)Explore the case company’s choice of IPO Motivation for financing;2)Motivation for choosing different sectors for listing.This article constructs a motivation analysis system from both academic achievements and practical basis.Based on the Pareto optimal principle,the financial growth cycle theory is combined with the equity financing preference theory,and finally the approval system and the registration system are compared from the listing standards and other aspects,to provide theoretical support for further explaining the listing of different sectors.The main research conclusions are as follows:First,because of the high investment and low leverage of the biomedical companies in the growth period,there is a strong demand for financing.Second,listing on the Science and Technology Innovation Board is an effective financing channel for biomedical companies in the growth stage.The motivation analysis of the case company using IPO as the main financing method is as follows:First of all,starting from the original nature of the industry,it can be found that the capital needs of biomedical companies usually have the characteristics of large R&D investment and long return periods;Based on the above capital requirements,it can be found that the capital use destination of the case company has significant timeliness characteristics.Take the fundraising projects as the main destination reference,which are all heavy asset projects that have been invested and constructed,and the biopharmaceutical products need to be rushed to the market,which inherently has a high opportunity cost;Secondly,because the case company is in the growth stage,it needs to carry out large-scale fixed assets laying,and the capital needs have the above-mentioned characteristics of large investment,slow return,and strong timeliness,which indirectly causes defects in daily operations,mainly due to weak growth in main business performance,Lack of cash flow;Finally,when the endogenous supply and capital demand conflict,companies naturally seek external financing,but they often face higher thresholds for use,or there are problems with limited amounts available,so IPO is the most suitable financing arrangement.Third,under the premise of choice,biomedical companies still use the main board as their first choice for listing unless there are important issues that may lead to the failure of the issuance,but the science and technology innovation board does give defective companies more opportunities to go public.Fourth,listing does bring positive growth to companies.The most important thing is to help companies improve their capital structure and increase financial leverage.Based on the above conclusions,this article attempts to achieve the following objectives: 1)Under the conditions of parallel approval system and registration system,give suggestions for optimizing financing arrangements for high-tech enterprises: equity financing is preferred,and sci-tech innovation board listing is recommended;2)Demonstrating that the registration system is in the target Adaptability in the enterprise.