Beijing rolls out the red carpet to woo unicorns to list in Shenzhen or Shanghai
Traditional manufacturers will have to join the queue of more than 600 listing candidates … but those in strategic tech sectors can be on a bourse and trading in a month, says one source close the CSRC
Cash flow? Revenue? Gross merchandise volume? Forget about them, the thing most valued by China’s tech entrepreneurs, and their bankers, is how much the company resembles a “unicorn”.
The term “unicorn” – referring to start-ups worth at least US$1 billion – is becoming the hottest buzzword in China’s business sector after Beijing used the term in context of young companies with superior technology.
And the authority gave the term a clearer definition on Friday night.
It said two types of firms have been selected as “pilot firms” that will enjoy preferred listing policies, according to a set of new rules regarding prioritising certain company stock offerings, issued by the State Council, citing rules made by the China Securities Regulatory Commission (CSRC).
They are, innovative firms with revenue of no less than 3 billion yuan (US$477.7 million) in the most recent year and a valuation of no less than 20 billion yuan, or companies with rapid growth in income, empowered by world-leading tech and research ability and those enjoying an advanced position in peer competition.
Bankers are being urged to submit initial public offering (IPO) materials for unicorn companies under a special fast track, said sources close to the CSRC.