A Study on the Determinants of the Successful IPO

Author:

Yao Xintong

Abstract

The process of a company’s IPO application passing the SEC’s review and successfully raising funds from the public by issuing shares on the stock exchange signifies that the company has become a public company and its shares can be listed and traded on the stock exchange. However, the IPO process is actually quite complex, and there are numerous roles involved in the IPO, and a small mistake related to the conduct of the IPO can result in the company not being able to go public. The Securities and Futures Commission (SFC) has some basic requirements for the issuance conditions of the proposed listed company, which gives the proposed listed company an order to ensure that its business system is complete and has the ability to operate independently directly to the market, so that it can have a more definite answer to the success or failure of the IPO. Based on this, the article clarifies the meaning of IPO, and the conditions that the company needs to have and its importance, and lists several factors one by one, such as pricing, efficiency, cost, and stock offering.

Publisher

EDP Sciences

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