Department of Public Offering Supervision and Department of ChiNext Offering Supervision of the China Securities Regulatory Commission, Circular on Issues Relevant to the Pricing of New Share Offerings

中国证券监督管理委员会发行监管部、创业板发行监管部关于新股发行定价相关问题的通知

July 12, 2012 | BY

clpstaff &clp articles

An IPO P/E ratio should not be higher than the industrial average by 25%.

Clp Reference: 3710/12.05.23 Promulgated: 2012-05-23

Issued: May 23 2012

Main contents: Once the prospectus is officially disclosed, if the offer price (or the upper limit of the offer price range) price-earnings ratio drafted based on the price inquiry results is 25% greater than the average price-earnings ratio of listed companies in the same industry, the issuer shall convene a board meeting to confirm the offer pricing and to discuss and analyse the pricing risk factors and their relevant effects.

Related legislation: Measures for the Administration of Securities Offerings by Listed Companies (Revised), May 18 2012, CLP2012 No.6 p.25; and Guiding Opinions on Further Intensifying the Reform of the System for Offering of New Shares, Apr 28 2012, CLP2012 No.6 p.26

clp reference:3710/12.05.23
promulgated:2012-05-23

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