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Kechuang board asked for a super low price! What does the birth of minimum fundraising mean?
Sep 17,2020 08:22CST
The content below was translated by Tencent automatically for reference.

SMM News: Science and Technology Innovation Board Company raised less than 100 million, has become the focus of news in the past two days.

On September 15, Shangwei New Materials Publishing Co., Ltd. announced the listing of the board, and the company completed the preliminary inquiry and determined the offering price at 2.49 yuan per share. It is expected to raise 108 million yuan, and the net amount raised is about 70.0427 million yuan, which is lower than the company's net profit of 78.27 million yuan in 2019.

The total market capitalization of the company is about 1.004 billion yuan, and the minimum market capitalization requirement for the listing of Science and Technology Innovation Board is 1 billion yuan. If the inquiry result is 1 penny lower, the issue will fail.

In addition, the price-to-earnings ratio of the issue price is between 10.27 and 12.83 times, which is lower than the average static price-earnings ratio of the C26 chemical raw materials and chemical products industry published by China Securities Index Co., Ltd., which is 28.96 times. in addition, it is also lower than the average price-to-earnings ratio of comparable listed companies.

Why is there a more extreme fund-raising gap and market capitalization of Shangwei new materials? The Financial Associated Press interviewed a number of brokerage investment bankers to interpret it from the perspectives of investor inquiry, market issuance and so on.

The fund-raising is not enough for the net profit of last year, and the market capitalization is above the

On September 15, Shangwei Xincai, which is about to list Science and Technology Innovation Board, announced that the issuer and sponsor institution (lead underwriter) determined that the offering price was 2.49 yuan per share based on the results of preliminary inquiry, and that the public offering did not exceed 43.2 million shares. the total amount of capital raised is expected to be only 107.6 million yuan, and after deducting the issuance fee of about 37.5253 million yuan (excluding value-added tax), the net fund raised is expected to be 70.0427 million yuan.

Shangwei new materials offering fund-raising situation is not optimistic, the issue price is slightly higher than the company's net assets, the amount of capital raised after deducting the issuance expenses is about the same as the company's deduction of non-net profit in 2019. In addition, the company had expected to raise 216 million yuan, the amount gap is also relatively large.

According to Shangwei's prospectus, the company's net profit after deducting non-recurring gains and losses in 2019 was 87.2484 million yuan, with net assets per share of 2.39 yuan before the issue.

According to the issue announcement, Shangwei Xincai meets the first standard of Rule 2.1.2 of the Science and Technology Innovation Board Stock listing rules of the Shanghai Stock Exchange: "(1) the market capitalization is expected to be no less than RMB 1 billion. In the last two years, the net profit is positive and the cumulative net profit is not less than RMB 1 billion, the most recent year's net profit is positive and the operating income is not less than RMB 100 million.

In addition, the price-to-earnings ratio of the issue price is between 10.27 and 12.83 times, which is lower than the average static price-earnings ratio of the C26 chemical raw materials and chemical products industry published by China Securities Index Co., Ltd., which is 28.96 times. in addition, it is also lower than the average price-to-earnings ratio of comparable listed companies.

Public data show that Shangwei new materials are mainly engaged in environmental protection, high-performance corrosion-resistant materials, wind power blade materials, new composite material research and development, production and sales.

In terms of issuing fees, Shangwei Xincai mentioned 37.5253 million yuan in the issuance announcement, but according to its previous letter of intent, it was mentioned that "the sponsorship fee is 2.8302 million yuan (excluding VAT); the underwriting fee is 7.18% of the total funds raised and not less than 21 million yuan (including VAT)". According to this calculation, the underwriting fee is about 7.7544 million yuan, and the actual issuing fee may be about 29.7709 million yuan.

Although the issuance cost has declined, the proportion of the fee in the actual amount of capital raised is still not low. The sponsor institution and lead underwriter Shen Wanhongyuan underwriting sponsor Co., Ltd. will receive sponsorship underwriting fees, which may account for about san of the actual raised funds.

In addition, the lead underwriter Shen Wanhong Yuan made a follow-up investment with the investment subsidiary Shenyin Wanguo Innovation Securities Investment Co., Ltd. in accordance with the rules, and the proportion of follow-up investment is expected to be 5% of the number of this public offering, that is, 2160000 shares, with a follow-up investment of 5.3784 million yuan.

The price of investor Bao is clustered together, and the quotation of 399 is 2.49 yuan.

From the point of view of the Bao price of Shangwei new materials issuance announcement investors, the phenomenon of huddling quotation is obvious. The 6954 placing objects managed by the 415 offline investors meet the conditions of offline investors stipulated in the issuance arrangement and preliminary inquiry announcement. The quotation range is 2.49 yuan per share-118.56 yuan per share, and the total number of shares to be applied for is 111.1748 billion shares.

The quotations of more than 400 inquiry institutions range from 2.49 yuan to 4.96 yuan, of which 399 offer 2.49 yuan, including public funds, insurance companies, securities companies, QFII, finance companies, trust companies and private equity funds.

It can be seen that the investment styles of the above investors are quite different, and the biggest difference is between public and private funds.

The actual fund-raising of 24 enterprises was lower than expected, and the fund-raising of pre-science biology was 30% less than the plan.

There is an increasing trend that the actual amount of IPO raised by Science and Technology Innovation Board is lower than the planned amount.

Since the beginning of this year, as of September 15, a total of 106 Science and Technology Innovation Board enterprises have completed their initial public offerings, of which 24 have actually raised less than expected.

In September, seven Science and Technology Innovation Board IPO offerings, three of which raised less than expected, in addition to the above-mentioned Shangwei new materials, but also include pre-science biology, Lant optics.

Pre-science biology started to apply for purchase on Sept. 11. the application price was 11.69 yuan, and the IPO price-to-earnings ratio was 26.23 times, which was lower than the industry average price-earnings ratio of 56.33 times. the company originally planned to raise 1.747 billion yuan, but actually raised 1.227 billion yuan, 29.77% less than the planned fund-raising.

In addition, Rand Optics, which originally planned to raise 707 million yuan, also failed to achieve its goal, and the actual fund-raising was 630 million yuan.

Why is the actual amount raised lower than the planned amount?

He Nanye, an investment banker, told the Financial Associated Press that the emergence of Shangwei Xincai has both subjective and objective factors: first, it has a lot to do with the industry and the company's performance, because the company is in the basic chemical industry, the price-to-earnings ratio is generally low, at the same time, the company's net profit over the years is not very high, volatility is relatively obvious, therefore, has not been widely recognized by investors; Second, whether it is Science and Technology Innovation Board, gem or the main board market in the near future, IPO examination and approval and the number of issues have repeatedly set new highs, market pressure is greater, and it is normal for the price of new shares to go down; third, affected by the pullback of US stocks, the share price of the fund holding group stocks has fallen sharply in the near future, directly driving Science and Technology Innovation Board and the gem into a relatively depressed state, and the market is not good, so the inquiry issue price will not be too high naturally.

He Nanye believes that this kind of situation will be very common in the future, mainly because under the registration system, the issuing speed is fast, the market capital pressure is increasing, and there is only preferential investment, resulting in obvious polarization. Good companies will get higher share prices and valuations. In general, the offering price of company shares may not be too high, and there may even be cases where the issue fails due to insufficient subscription. The emergence of more and more issuing failure cases is good for the capital market. only in this way can we break the myth of the skyrocketing new shares, give full play to the function of the optimal allocation of the capital market, and let good companies get more attention and funds. become stronger and bigger, and give full play to the role of the capital market in promoting the development of the real economy.

Wang Ji Yue, an investment banker, made an interpretation from the point of view of investors' participation in the inquiry, saying that it is reasonable for the inquiry object to lower the issue price, and the fundamental reason is the decision of supply and demand. After the gem registration system reform, the pace of IPO has accelerated, and now more than a dozen companies are issued every week, 60 in August, and some new shares have been broken shortly after listing. The object of inquiry is facing the risk of breaking, of course, it is necessary to lower the issue price.

Wang Jiyue believes that after driving down the offering price, the breaking pressure on the secondary market is alleviated, which can ensure the sustainability of the issuance rhythm; participating in new price inquiry institutions and retail investors can make money, and the shareholders of successful listed issuers can reduce their holdings according to the market price in the future, and the risk of subsidiaries of sponsors is also greatly reduced.

Wang Jiyue further analyzed that in addition to the issuer raising less money and the bonus of the investment bank project team being affected, the low-price offering is a win-win result.

From the perspective of supervision: the invisible hand of the market has replaced the visible hand of the administration to lower the issue price, which is the result of the market-oriented reform; allowing more companies to be listed has also realized the policy demand of the capital market to support the real economy and increase the proportion of direct financing; if a company is refused to list because the market quotation does not meet the listing conditions, it is a successful symbol of the registration reform.

However, the rationality and acceptability of the results of low-price issuance does not mean that the inquiry process is fair and reasonable and is in line with the laws of the market. The so-called market-oriented effect is achieved by non-market-oriented means, and it is not a real market-oriented game to determine the issue price, which runs counter to the spirit of the registration system. Whether it is the issuer or the seller's organization, many people may hold grievances at the bottom of their hearts: disobedient! Unfair! It is acceptable that the market has given a low price, but it is difficult to accept being treated unfairly. " Wang Jiyue analysis said.

"obviously, this kind of quotation mechanism is not the reasonable value of the issuer. Although in the intensive issuance stage, the inquiry agency does not have time to seriously study the value of the issuer, it is more likely to pat the price on the head according to the market situation, and the quotation is hardly the reasonable value of the issuer, but after all, a more independent offer can better reflect the attitude of the market as a whole towards a new stock. " Wang Jiyue said.

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