In 2022, the first securities firm impacted A-share IPO.
On February 18, the CSRC announced that the 19th working meeting of the issuance Review Committee in 2022 will be held on February 24 to review the IPO applications of three companies, including Dongguan securities.
This means that Dongguan securities, headquartered in the Pearl River Delta, is about to usher in the IPO examination after waiting in line for seven years and experiencing twists and turns. If it goes well, Dongguan securities will become the first listed securities company in 2022 and the 42nd listed securities company of A-Shares (only counting direct listing).
The Chinese reporter of securities companies learned that the supervision adopts the risk control index management with net capital as the core for securities companies. In order to enhance the capital strength and improve the ability to resist risks, there was a wave of upsurge of listed securities companies in 2019 and 2020. Since 2021, the listing rhythm of securities companies has slowed down. Up to now, there are also Bohai Securities, capital securities, Cinda securities There are 4 Wanlian securities and 6 securities companies are in the stage of counseling and filing.
Line up for the 7-year-end exam
the listing of Dongguan securities is not plain sailing. It took seven years to get to the IPO.
On February 18, the CSRC issued the announcement of the 19th working meeting of the 18th development and Examination Commission in 2022. The development and Examination Commission will examine the IPO applications of Nanjing Jiahuan Technology Co., Ltd., Dongguan Securities Co., Ltd. and Jiangxi Sunshine Dairy Co., Ltd.
Statistics show that Dongguan securities, founded in June 1988 with a registered capital of 1.5 billion yuan, is a key state-owned holding enterprise in Dongguan.
By the end of 2020, Dongguan securities had five shareholders, namely: Guangdong Golden Dragon Development Inc(000712) , Dongguan Financial Holding Group Co., Ltd., Dongguan Development (Holdings) Co.Ltd(000828) , Dongguan financial holding Capital Investment Co., Ltd. and Dongguan new century science and Education Development Co., Ltd., holding 40%, 20%, 20%, 15.4% and 4.6% respectively.
It is reported that although there are more than 40% private components, the actual controller of Dongguan securities is Dongguan SASAC, which indirectly controls 55.40% of the equity through Dongguan Financial Holding Group Co., Ltd. Dongguan Development (Holdings) Co.Ltd(000828) and Dongguan financial holding Capital Investment Co., Ltd.
According to the website of the CSRC, Dongguan securities submitted the prospectus as early as June 2015 and submitted the updated prospectus on January 15, 2017.
After submitting the prospectus, Dongguan securities experienced some twists and turns in its IPO. In 2017, because Yang Zhimao, one of the important shareholders and the actual controller of Guangdong Golden Dragon Development Inc(000712) , bribed state civil servants, Dongguan securities took the initiative to apply for suspension of the review, resulting in the delay of the IPO process.
In February 2021, the CSRC reviewed the application for resuming the examination of the application documents for the initial public offering and listing of Dongguan Securities Co., Ltd. submitted by Dongguan securities according to law. It considered that the application met the conditions for resuming the examination, and then resumed the examination.
Until the announcement of the issuance and examination meeting on February 18, 2022, Dongguan securities has worked hard on the IPO for seven years and will usher in the big test next week.
On January 20, 2022, Guangdong Golden Dragon Development Inc(000712) simultaneously disclosed the performance of Zhongshan securities and Dongguan securities, with a great contrast between them.
It is understood that Dongguan securities takes brokerage, asset management and investment banking as the core, has 88 branches, and has business outlets all over the Pearl River Delta, Yangtze River Delta and Bohai rim economic circle. The pattern of “taking root in Dongguan and moving towards the whole country” has basically taken shape.
At the same time, Dongguan securities also wholly owned Dongzheng Jinxin Investment Management Co., Ltd. and Dongguan Dongzheng Hongde Investment Co., Ltd. and participated in Hualian futures. Dongguan securities received A-level classification rating of securities companies by the CSRC in 2020 and 2021.
Guangdong Golden Dragon Development Inc(000712) disclosed that the unaudited financial report of Dongguan securities in 2021 had an operating revenue of 2.729 billion yuan, a year-on-year increase of 11.5%; The net profit was 942 million yuan, a year-on-year increase of 23.62%. By the end of 2020, Dongguan securities had total assets of 49.483 billion yuan.
The other Zhongshan securities company fell into a loss in 2021, and its net profit changed from 241 million yuan in 2020 to 124 million yuan.
There are still 10 subsequent IPO teams of securities companies
Capital has increasingly become an important factor affecting the competitiveness of securities companies. In recent years, small and medium-sized securities companies have strong willingness to finance and seek IPO.
Dongguan Securities said in its prospectus that after IPO, it can supplement the company’s capital, expand the business scale, optimize the business structure, and enhance the company’s market competitiveness and anti risk ability.
It is understood that in the past 2019 and 2020, a wave of securities companies realized A-share listing, such as Hongta Securities Co.Ltd(601236) , Boc International (China) Co.Ltd(601696) , Guolian Securities Co.Ltd(601456) and China International Capital Corporation Limited(601995) . In 2021, only Caida Securities Co.Ltd(600906) in Hebei realized IPO, and the capacity of A-share listed securities companies (only statistical direct listing) expanded to 41.
According to the information publicized by the CSRC on February 18, up to now, in addition to Dongguan securities, there are four securities companies, Bohai Securities, capital securities, Cinda securities and Wanlian securities, which are waiting for IPO. According to the basic IPO review process of the CSRC, the company’s listing has gone through acceptance and pre disclosure, feedback meeting, pre disclosure update, preliminary review meeting, issuance review meeting, sealing, approval of issuance, etc.
Among the four IPO queuing securities companies, Xinda securities and capital securities are in the “pre disclosure update” status, and Wanlian securities and Bohai Securities are in the “feedback” status.
In addition, according to incomplete statistics of Chinese reporters of securities companies, there are six securities companies in the “guidance filing” stage, including Caixin securities, which just disclosed the guidance filing in January this year, as well as Huabao securities, Huajin securities, Guokai securities, Hualong securities, Donghai securities, etc.
