In 2022, the “a dismantle a” camp will be expanded again. On February 18, Hualan Biological Engineering Inc(002007) spin off subsidiary Hualan vaccine landed on the gem.
According to the reporter of Securities Daily, three A-share listed companies split their subsidiaries and landed in A-shares during the year. Further combing the data and the announcement of listed companies, it is found that since the birth of the first spin off listed shares at the end of February 2021, the number of spin off listed shares has reached 12 as of February 18 this year. Among them, 7 are from the science and innovation board, 4 are from the gem and 1 is the main board stock.
“For listed companies, the choice of spin off listing is based on high-quality business with good growth outside the main business.” Dong Dengxin, director of the Institute of Finance and securities of Wuhan University of science and technology, told the Securities Daily.
In fact, from the current “a split a” market situation, listed companies have regarded the gem as the preferred place for their subsidiaries to be split and listed.
Fu Rao, executive director of the International New Economy Research Institute, told the Securities Daily that listed companies can obtain high valuation by splitting excellent assets to be listed on the gem, and cultivate and expand other advantageous industries while developing their main business.
From the stock price performance on the first day of listing, the split listed stocks generally rose significantly and were popular with investors.
According to statistics, the average share price of the above 12 companies rose as high as 144% on the first day of listing. Specifically, the share price of only one of the 12 companies fell, and the five companies rose by more than 100%, Shandong Kaisheng New Materials Co.Ltd(301069) , Xtc New Energy Materials( Xiamen) Co.Ltd(688778) led by 548% and 397% respectively.
“The reason for good performance is that these companies are valuable and potential high-quality assets of the parent company.” Kuang Yuqing, the founder of lens research, told the Securities Daily.
Generally speaking, only a small number of new entities with strong incubation ability can be listed. Therefore, listed companies should not spin off for spin off. They should be alert to the impure motives of individual companies and “circle money” in the name of spin off and listing.
“In recent years, the positive factors of A-Shares appear frequently, which has accelerated the pace of progress of the ‘a split a’ market.” Kuang Yuqing said that first, under the background of the registration system, especially under the implementation of the stock registration system in the whole market this year, the listing cycle has been shortened and the meeting speed has been accelerated, which have accelerated the pace of IPO of spin off subsidiaries; Second, the regulatory authorities continued to improve the rules and systems related to spin off listing and encouraged qualified enterprises to list legally and in compliance, which also added confidence to all parties in the market; Third, at present, high-quality assets with high scientific and technological content are highly concerned by the market, and the relevant valuations are relatively optimistic, which has promoted the process of enterprise spin off and listing.
