The Impact of the Proportion of Private Placement Financing in IPOs on Company Valuation

Zhenglin Li

doi:10.54254/2754-1169/2026.NJ29867

Advances in Economics, Management and Political SciencesOpen access

The Impact of the Proportion of Private Placement Financing in IPOs on Company Valuation

Research Article

Open Access

The Impact of the Proportion of Private Placement Financing in IPOs on Company Valuation

Zhenglin Li ^1*

¹ University of International Business and Economics

^*Corresponding author: 202302291@uibe.edu.cn

Published on 26 November 2025

AEMPS Vol.242

ISSN (Print): 2754-1177

ISSN (Online): 2754-1169

ISBN (Print): 978-1-80590-555-4

ISBN (Online): 978-1-80590-556-1

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Abstract

Currently, the Chinese economy is undergoing significant cyclical fluctuations, and the market environment is complex and ever-changing. In this context, non listed companies are facing many development difficulties, particularly in terms of financing difficulties and high financing costs. At the same time, information disclosure is opaque and difficult to obtain, which seriously restricts their further development. In the current critical period of economic development, scientific valuation of non listed companies has become an important issue that urgently needs to be addressed, and it is urgent to establish a comprehensive company value evaluation system. This article uses market analysis methods and carefully selects data from listed companies in 2023 to explore in depth the financing scale and structural characteristics during their initial public offering (IPO) period. And with the help of the Stata regression model, will carefully study the impact of the shareholding ratio of private equity institutions among non listed company shareholders on IPO valuation, striving to accurately evaluate the growth potential of enterprises and provide more targeted and practical decision-making recommendations for private equity investment institutions.

Keywords:

Private placement, financing, company valuation

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