Motivations for Backdoor Listing and Post-backdoor Performance of Range Technology under the Registration System

Abstract

The successful launch of the registration system in the Science and Technology Innovation Board Star Market in 2019 opened the prelude to the reform of the registration system in my country, followed by the reform in the growth enterprise market in June 2020. The registration system overcomes the subjectivity, lag, and inefficiency of the merit regulation system to some extent and clears the way for high-quality scientific and technological innovation enterprises to achieve listing and financing. This paper takes the backdoor listing event of Range Technology in September 2022 after the implementation of the registration system as the research object and studies the motivation of the event and its long-term and short-term performance after listing. The research found that the companys backdoor listing was hindered by its own financing needs and the difficulties of the IPO. We use the event study method to study and find that the backdoor event has a significant positive impact on the short-term performance of Shells stock. In addition, the data of long-term financial performance indicators show that after the backdoor listing, Range Technologys financial performance is good, and the stock financing channel provides a guarantee for the improvement of its operating performance.