Recently, new shares in the A-share market broke on the first day, and the losses of successful investors are also increasing.
On December 15, Baiji Shenzhou landed on the science and innovation board. The opening price was 176.96 yuan / share, which fell below the issue price of 192.6 yuan. Then the decline expanded, with a minimum drop of nearly 20%, and the lowest price was 155.02 yuan. Based on the intraday lowest price, the loss of China first signing reached 18800 yuan, and the underwriting securities companies also suffered a floating loss of 38.8 million yuan.
After the severe shock, the “green shoe” mechanism played a role in stabilizing the stock price, and Baiji Shenzhou’s stock price gradually stabilized. Market analysts pointed out that the application of the green shoe mechanism plays a positive role in reasonable pricing, stabilizing the aftermarket and expanding the issuance scale at an appropriate time, which is conducive to the smooth transition of stock prices from the primary market to the secondary market and reduce the market risk of investors in the short term.
Baiji China once fell nearly 20%
the first contract lost nearly 20000
After Liaoning Chengda Biotechnology Co.Ltd(688739) broke on the first day of listing, causing investors to lose more than 10000, new shares broke today, causing investors to suffer large losses.
On December 15, Baiji Shenzhou broke off on the first day of listing, with an opening drop of 8.12%, and then the decline continued to expand, with a minimum drop of nearly 20%, and the lowest price was 155.02 yuan. As of the noon closing, Baiji Shenzhou fell 12.77%, to 168 yuan, with a total market value of 224.2 billion yuan.
the breaking of new shares means that the winning investors will have a loss. According to the calculation of the securities times, if the intraday lowest price is calculated, the loss of each winning investor will reach 18800 yuan. If the midday closing price is calculated, the loss of each winning investor will reach 12300 yuan.
It is worth noting that Baiji Shenzhou has introduced the “green shoe” mechanism in this issuance. Under the “bottom support” of green shoes, Baiji Shenzhou’s share price has gradually stabilized, and Baiji Shenzhou’s Hong Kong stock has also gradually shaken and stabilized.
Baiji Shenzhou is the first biotechnology stock listed in “n + H + a”.
Previously, the company was first listed on NASDAQ in 2016 and listed on the Hong Kong Stock Exchange in 2018. So far, the market value of Baiji Shenzhou in US stocks is US $26 billion and the market value of Hong Kong stocks is HK $225.5 billion.
The total amount of funds raised by Baiji Shenzhou’s issuance was 22.16 billion yuan (before exercising the over allotment option); 25.48 billion yuan (after exercising the over allotment option in full); After deducting the issuance expenses, the net amount of raised funds is RMB 21.63 billion (before exercising the over allotment option); RMB 24.907 billion (after exercising the over allotment option in full).
The raised funds will be mainly used for drug clinical trial R & D projects, and the rest will be invested in R & D center construction projects, production base R & D and industrialization projects, marketing network construction projects, and supplementary working capital.
it is worth mentioning that Baiji China grants China International Capital Corporation Limited(601995) an over allotment option (or “green shoe mechanism”) that does not exceed 15% of the number of shares initially issued. If the over allotment option is fully exercised, the total number of shares issued will be expanded to 132 million shares, Accounting for about 9.79% of the total number of shares issued by the company on October 31 and the sum of the number of shares issued this time (after the over allotment option is fully exercised).
Northeast Securities Co.Ltd(000686) the analysis points out that in the post market stability period after the stock is listed, if the secondary market price of the stock is higher than the issuance price, the underwriter can exercise the green shoe and require the issuer to issue a corresponding number of shares, so as to increase the supply of the secondary market; If the performance of the secondary stock market is weak, the Underwriters will use the funds raised from the over allotment of shares to buy a corresponding number of shares from the secondary market and reduce the number of shares circulating in the secondary market to support the stock price performance. In this way, with appropriate trading strategies, the exercise of the green shoe mechanism can slow down the decline of the stock price to a certain extent or maintain the stock price at a level not lower than the issue price.
in terms of the performance of new shares with high issuance price this year, among the new shares with issuance price higher than 80 yuan, Liaoning Chengda Biotechnology Co.Ltd(688739) , Wayz Intelligent Manufacturing Technology Co.Ltd(688211) , Cofoe Medical Technology Co.Ltd(301087) broke, and the other high-priced shares rose. Among them, there are many “big meat labels” that won 100000 yuan in the first lot, and Chengdu Xgimi Technology Co.Ltd(688696) the income of the first lot exceeded 200000 yuan.
brokerage underwriting floating loss of 38 million yuan
Baiji Shenzhou previously released an announcement on the issuance results, which showed that the number of online investors to give up subscription was 1032500 shares, the amount of abandonment was about 199 million yuan, and offline investors subscribed in full.
According to the regulations, the shares abandoned by investors will be underwritten by securities companies. According to the announcement of Baiji Shenzhou issuance, the number of shares abandoned by online and offline investors is underwritten by the joint lead underwriters. The total number of underwritten shares is 1.0325 million, with an underwritten amount of RMB 199 million. The number of underwritten shares accounts for 1.06% of the number of shares issued after the over allotment is put into operation after deducting the final strategic allotment, The proportion of the number of underwritten shares in the number of shares issued after the opening of the over allotment is 0.78%.
It is worth mentioning that the lineup of Baiji Shenzhou’s “underwriting group” is luxurious, with China International Capital Corporation Limited(601995) and Gaosheng Gaohua securities as the co sponsors and co lead underwriters. In addition, JPMorgan securities (China), Citic Securities Company Limited(600030) , Guotai Junan Securities Co.Ltd(601211) securities are also the co lead underwriters of the offering. In other words, the 1032500 shares abandoned by investors will be underwritten by the above five securities companies.
according to the calculation of the reporter of the securities times, if calculated at the lowest intraday price, 1032500 shares underwritten by securities companies directly face a floating loss of 38.8 million yuan; If calculated at the midday closing price, the loss of shares underwritten by securities companies also reached 25.4 million yuan.
The reason why Baiji Shenzhou’s performance on the first day of listing attracted much attention was mainly due to the abandonment amount of RMB 199 million, which not only refreshed the record of abandonment amount of Kechuang board, but also refreshed the third abandonment record in the history of a shares.
However, the record has recently been broken. On December 14, Hemai shares announced the listing and issuance results of the science and innovation board. Online investors gave up 65138700 shares, and online investors gave up the subscription amount of 363 million yuan.
The abandonment amount of Hemai shares of RMB 363 million once again broke the record of abandonment amount of Kechuang board, and also broke the third abandonment record in the history of a shares.
In addition, the abandonment rate of Hemei shares also reached a record high. Compared with the number of online issuance, the abandonment rate of Hemei shares reached 18.74%, while that of Baiji Shenzhou was only 2.49%.
Therefore, in the case of Baiji Shenzhou’s share price breaking on the first day, investors are also worried about the first day performance of Hemai shares.
star institutions such as Hillhouse capital
Baiji Shenzhou is a global biotechnology company based on science, focusing on the development of innovative and affordable drugs, aiming to improve the treatment effect and drug accessibility for patients around the world.
Since its establishment, Baiji Shenzhou has focused on drug research and development and gradually entered the commercialization stage, but it has not yet begun to make profits. The company’s main business revenue includes drug sales revenue and technology licensing and R & D service revenue.
In 2018, 2019, 2020 and January September 2021, the net profits attributable to the shareholders of the parent company were – 4.747 billion yuan, – 6.915 billion yuan, – 11.384 billion yuan and – 5.5 billion yuan respectively.
The company estimates that it will suffer a loss of RMB 8.542 billion to RMB 11.012 billion in 2021, mainly due to the continuous expansion of the sales scale of self-developed products in its main business in 2021, the technology licensing income obtained during the period, the increase of R & D projects and the continuous expansion and promotion of project progress.
It is noteworthy that Baiji Shenzhou’s IPO on the science and innovation board has attracted a number of well-known institutions to participate in the strategic placement. Among them, the social security fund was allocated 89.02 million yuan, the China Insurance Investment Fund (limited partnership) was allocated 927 million yuan, the central enterprise rural industry investment fund Co., Ltd. was allocated 923 million yuan, and Abu Dhabi Investment Bureau was allocated 464 million yuan.
Hillhouse capital also holds Baiji China for a long time. As early as 2014, Hillhouse capital participated in the a-round financing of Baiji China and the b-round financing in 2015. From listing in the United States in 2016, private placement after listing, and then listing in Hong Kong, Hillhouse has been participating in the financing of Baiji China. According to the prospectus of Baiji Shenzhou, as of June 30, 2021, Hillhouse capital and its concerted actors Hillhouse BGN Holdings Limited and YHG investment, L.P. The company holds 147 million shares in total.
Investors cried: the first signing lost 18000! 200 billion giant listed plummeted! There is also the “double kill” of shares and bonds of this real estate giant
Investors vote with their feet! Baiji Shenzhou A-Shares broke on the first day of listing, with a cumulative loss of more than 28.5 billion yuan. When can it “return blood” is still a problem
(Securities Times)
