Chinese LED manufacturers IPO applications remain a lengthy tedious procedure.
As of October 10, China Securities Regulatory Committee (CSRC) only approved 33 out of 623 LED manufacturers IPO applications. Of the remaining 590 unapproved IPO applications, 566 are still queuing for the committee’s review, while 24 applicants review was terminated.
Three companies reviews that the committee previously terminated including Light Engine, Opple Lighting and Lightking Tech Group status has recently been changed to “accepted”, according to a CSRC announcement. The review status of LED power driver manufacturer The Aihua Group and Inventronics, however, is still labeled as “terminated”.
Chinese LED manufacturers that have passed the CSRC long IPO review process include MLS (approved on July 27, 2011) and Haiyangwang Lighting (approved on Sept. 19, 2014).
China’s IPO application process has been criticized as being murky and opaque, according to a CNBC report published last March. The country’s inception of a lengthy 10-step IPO application process, and assignment of limited man power to review each application, seemed to have laid the foundation for corruption and graft practices. Only 50 IPO applications are reviewed each year by the 11-member staffed IPO review committee, said CSRC.
