After nearly seven years of waiting, Dongguan securities finally got the “ticket” of a shares.
On the evening of February 24, the audit results of the 19th meeting of the 18th development and Examination Committee of the CSRC in 2022 were announced. The initial application of Dongguan Securities Co., Ltd. (hereinafter referred to as “Dongguan securities”) was approved. It became the first securities company to pass the meeting in 2022 and the 42nd listed securities company of a shares.
Source: Official Website of China Securities Regulatory Commission
From the acceptance of the application in June 2015 to the meeting in February 2022, the IPO of Dongguan securities has experienced twists and turns. During this period, the original legal person of the company’s major shareholder Guangdong Golden Dragon Development Inc(000712) was accused of taking bribes, which was the biggest variable. The rectification of relevant matters after his sentence was also one of the main questions asked at the IEC meeting.
sprint IPO lasted nearly 7 years
“Getting up early and catching up late” may be the most true portrayal of the IPO of Dongguan securities. After the overall change to a joint stock limited company in November 2014, the IPO application of Dongguan securities was accepted by the CSRC on June 19, 2015. After waiting for one and a half years, Dongguan securities received feedback on the application documents for initial public offering issued by the CSRC in January 2017.
However, before long, the IPO of Dongguan securities was suspended because the original legal person of the major shareholder Guangdong Golden Dragon Development Inc(000712) was accused of taking bribes. According to the Guangdong Golden Dragon Development Inc(000712) announcement, Yang Zhimao, the former legal representative and former chairman of the company, bribed 64.11 million yuan to state staff in order to get care and help in the acquisition of equity of Dongguan securities. Finally, he was convicted of bribery and sentenced to fixed-term imprisonment of two years and suspended sentence of three years.
The above related questions were also asked at the IEC meeting last night. According to the official website of the CSRC, Dongguan securities was asked to explain whether Yang Zhimao’s crime affected the legitimacy of Guangdong Golden Dragon Development Inc(000712) obtaining the issuer’s equity, whether the relevant shareholders met the shareholder qualification conditions after Yang Zhimao was sentenced, the rectification of relevant matters, and whether there were situations affecting the issuer’s equity stability and corporate governance.
Source: Official Website of China Securities Regulatory Commission
Due to this incident, Dongguan securities decided to suspend the IPO application and obtained the consent of the CSRC in May 2017. Although Guangdong Golden Dragon Development Inc(000712) made it clear in the 2018 business plan that “we will actively promote the IPO of Dongguan securities”, the IPO of Dongguan securities did not see the dawn until the beginning of 2021.
On February 5, 2021, Guangdong Golden Dragon Development Inc(000712) announced that the CSRC decided to resume the examination of Dongguan securities IPO application. Until February 24, 2022, Dongguan securities finally entered the review link of the conference.
In Dongguan securities, the ranks of A-share listed securities companies have expanded rapidly in recent years. As of February 24, 2022, during this period, 21 securities firms such as First Capital Securities Co.Ltd(002797) , Central China Securities Co.Ltd(601375) , Huaxi Securities Co.Ltd(002926) , Nanjing Securities Co.Ltd(601990) , China Securities Co.Ltd(601066) , Zhongtai Securities Co.Ltd(600918) , China International Capital Corporation Limited(601995) have successively landed a shares. In 2015, when Dongguan securities IPO application was accepted, there were Dongxing Securities Corporation Limited(601198) , Guotai Junan Securities Co.Ltd(601211) securities and Orient Securities Company Limited(600958) 3 securities firms listed.
With the successful holding of Dongguan securities, the total number of A-share listed securities companies will increase to 42, and Dongguan securities will also become the first listed securities company to hold the meeting in 2022.
it is proposed to issue no more than 170 million shares
Statistics show that Dongguan securities, founded in June 1988, is a key state-owned holding enterprise in Dongguan and one of the first underwriting and recommendation institutions in China. Guangdong Golden Dragon Development Inc(000712) holds 40% of the shares of Dongguan securities and is the largest shareholder of the company. Dongguan SASAC has become the actual controller of Dongguan securities by indirectly controlling 55.40% of the shares.
Since 2015, the total asset scale of Dongguan securities has maintained an upward trend as a whole, but its performance fluctuates. The scale of the company’s operating revenue and net profit in 2021 is lower than that in 2015.
According to the unaudited income statement of Dongguan securities in 2021 disclosed by Guangdong Golden Dragon Development Inc(000712) , the annual operating revenue of the company totaled 2.729 billion yuan and the net profit totaled 942 million yuan; In 2015, the total revenue of Dongguan securities was 3.766 billion yuan, and its net profit exceeded 1.2 billion yuan.
Compared with the listed securities companies that have disclosed the performance express or forecast of 2021, the revenue and net profit indicators of Dongguan securities in 2021 are similar to Nanjing Securities Co.Ltd(601990) as a whole; From the perspective of income composition, nearly half of the income of Dongguan securities in 2021 came from the net income of brokerage service fees (1.291 billion yuan), the net income of investment banking service fees totaled 371 million yuan, and the net income of asset management service fees totaled 63.2244 million yuan.
According to the IPO prospectus submitted by Dongguan securities in January 2017, the number of shares issued this time shall not exceed 16667 million, accounting for no more than 10% of the total share capital of the company after this issuance; After deducting the issuance expenses, the total amount of raised funds will be used to supplement the company’s capital, so as to expand the business scale, optimize the business structure and enhance the company’s market competitiveness and anti risk ability.
More than 123567 {IPO}
After the successful IPO of Dongguan securities, there are still four securities companies in the process of queuing up for IPO, namely Bohai Securities, Cinda securities, Wanlian securities and capital securities. From the latest progress, Wanlian securities is “suspension of review”; The audit status of Cinda securities and capital securities is “pre disclosed and updated”; The review status of Bohai Securities is “feedback”, and the Prospectus has been issued by the end of 2021.
In addition, there are many securities companies in the acceptance status of IPO counseling, filing and registration, including Caixin securities, Huabao securities, Huajin securities, Guokai securities, Hualong securities and Donghai securities; Xiangcai securities is also in the state of guidance filing and registration acceptance, but it has previously landed in the A-share market through “Harbin Gaoke”, and the securities abbreviation of the latter was changed to ” Xiangcai Co.Ltd(600095) ” in September 2020.
