The Ruihua incident continues to ferment, and the review of the four new IPO companies on the Science and Technology Innovation Board was forced to be suspended

Recently, due to the investigation of Ruihua, 29 companies in the IPO queue have been affected, and the refinancing projects of many A-share listed companies such as Shenzhen South Circuit and MLS have been hindered. In addition, four companies applying for the Science and Technology Innovation Board have also been "affected", and the review status has been changed from "inquired" to "suspended".

At present, among the 149 companies applying for the Science and Technology Innovation Board, the accounting firm of seven companies, including Longsoft Technology, JPT, Montage Technology, Tianjue Technology, Guoke Huanyu, Haitian Ruisheng, and Jianlong Micronano, is Ruihua Accounting Firm. Among them, Montage Technology and Tianjue Technology have been successfully listed, and Haitian Ruisheng was changed to "termination of review" on July 26; the review status of four companies including Longsoft Technology is "suspended".

It is reported that according to the review rules of the Science and Technology Innovation Board, if the issuer's sponsor or signing sponsor representative, securities service institution or relevant signing personnel are suspected of illegal and irregular activities in the initial public offering and listing, securities issuance by listed companies, mergers and acquisitions, or other businesses suspected of illegal and irregular activities with a significant impact on the market and are investigated by the China Securities Regulatory Commission, or are investigated by judicial organs but the case has not yet been closed, the issuance will be suspended. If the issuer does not need to change the sponsor or securities service institution according to the regulations, the sponsor or securities service institution shall promptly submit a review report to the exchange.

Therefore, the investigation into Ruihua will not have any impact on the two companies, Lanqi Technology and Tianjue Technology, which have already registered and taken effect. The review of other companies that have been accepted will be suspended and can be resumed after re-examination. New projects will not be accepted.

It is worth noting that among the four STAR Market IPO companies that have suffered from Ruihua’s failure, Apple’s VCSEL supplier JPT is also on the list.

It is reported that Jept plans to issue no more than 23.0921 million shares, and is expected to raise 973 million yuan. The sponsors are CICC and Hongta Securities. According to the prospectus, Jept will choose VCSEL semiconductor laser product testing to enter the semiconductor equipment field in the future.

Previously, Jept attracted market attention due to its brief listing on the New Third Board. Only 20 days after listing, it announced that it intended to apply for termination of listing on the National Equities Exchange and Quotations. Subsequently, Jept prepared for listing on the Growth Enterprise Market. The China Securities Regulatory Commission raised 14 questions about Jept's compliance and 37 questions about its information disclosure. In March 2018, Jept's GEM IPO was halted.

This time, Jept’s attempt to enter the Science and Technology Innovation Board was affected by the audit agency’s failure during the inquiry stage, which was truly an “unwarranted disaster”. It is worth looking forward to whether Jept can resume the review in the future.