Dongguan securities has obtained the “admission ticket” of a shares, and the listed securities companies will expand their capacity again.
On February 24, the CSRC announced that the initial public offering of Dongguan securities was approved, becoming the first securities company listed this year and the 43rd securities company directly listed on a shares.
Dongguan securities officially launched its IPO as early as 2015 and disclosed its prospectus for the first time on the official website of the CSRC. During this period, it encountered many twists and turns and finally landed in the capital market.
in recent years, in order to improve capital strength and risk resistance, a large number of small and medium-sized securities companies have sought IPO Financing. At present, four of the IPO reserve forces are still waiting in line to apply, including Wanlian securities, Bohai Securities, Cinda securities and capital securities, and six securities companies have entered the stage of “counseling and filing”.
Dongguan securities IPO meeting
On February 24, the official website of the CSRC publicized the audit results of the 19th meeting of the 18th development and Examination Commission in 2022, and the IPO of Dongguan securities was approved.
According to the announcement of , there are three main questions raised by the development and Examination Committee of the CSRC to ask Dongguan Securities:
First, whether Yang Zhimao’s crime affects the legitimacy of Dongguan securities shareholders’ Guangdong Golden Dragon Development Inc(000712) obtaining equity, etc;
Second, whether the provision for impairment related to the investment of defaulted bonds, financed funds and pledged repo business of Dongguan securities is cautious and sufficient;
Third, since December 2021, Hualian futures and its subsidiaries will no longer be included in the scope of the issuer’s consolidated statements.
It can be said that the IPO of Dongguan securities was not easy to pass, which lasted seven years. During this period, many other securities companies came from behind in terms of listing.
It is understood that Dongguan securities was accepted by the CSRC as early as June 2015 for the first disclosure of Prospectus Documents. Subsequently, due to the suspected crime of Yang Zhimao, the actual controller of private shareholder Guangdong Golden Dragon Development Inc(000712) , its IPO was forced to press the “stop button” until the CSRC resumed the review of Dongguan securities IPO application on February 7, 2021, and finally achieved positive results.
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.
In terms of equity structure, Dongguan securities has 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.
Although more than 40% of the shareholders are private, the actual controller of Dongguan securities is Dongguan SASAC, which indirectly controls 55.4% of the equity through Dongguan Financial Holding Group Co., Ltd. Dongguan Development (Holdings) Co.Ltd(000828) and Dongguan financial holding Capital Investment Co., Ltd.
It is understood that Dongguan securities takes brokerage, asset management and investment banking as the core, and has 88 branches. Its business outlets are spread 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. In terms of rating, Dongguan securities won the classified rating of securities companies of 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 2021, Dongguan securities had total assets of 49.483 billion yuan.
10 small and medium-sized securities companies lined up for IPO
With the intensification of market competition, the industry concentration will continue to improve. If small and medium-sized securities companies do not make up their capital in time and keep up with the general trend of market development, their competitiveness will be further weakened and their industry status will face the risk of decline. Under this background, small and medium-sized securities companies have sought IPO “blood”.
“the net capital strength of a securities company directly affects its business qualification and business scale, and is an important cornerstone of its anti risk and stable development,” an executive of a small and medium-sized securities company told reporters.
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.
Since 2019, there has been a wave of listing trend of securities companies in the A-share capital market, including Hongta Securities Co.Ltd(601236) , Boc International (China) Co.Ltd(601696) , Guolian Securities Co.Ltd(601456) , China International Capital Corporation Limited(601995) and Caida Securities Co.Ltd(600906) . The capacity of A-share listed securities companies (only counting direct listing) has been expanded to 42. Therefore, Dongguan securities will become the 43rd listed securities company.
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 state of “pre disclosure and update”, Bohai Securities is in the state of “feedback”, and Wanlian securities is in the state of “suspension of review”.
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.
it is worth mentioning that according to the Chinese reporter of the securities firm, Wanhe securities, which is headquartered in Shenzhen, also plans to hire intermediaries to carry out pre IPO counseling and promote the IPO progress in 2022.
