After the market closed on December 14, Soochow Securities Co.Ltd(601555) began to implement share allotment.
According to the disclosure of Soochow Securities Co.Ltd(601555) , the company plans to place 3 A-Shares for every 10 shares to all shareholders. The total number of shares that can be allotted this time is 1.152 billion, the total amount of fund-raising by allotment is expected to not exceed 8.5 billion yuan, and the allotment price is 7.19 yuan / share.
The company indicates that the payment for this allotment starts and ends during the normal trading hours of Shanghai Stock Exchange from December 15, 2021 to December 21, 2021, that is, the payment will begin today. As of September 30, 2021, Soochow Securities Co.Ltd(601555) shareholders account for 120400.
Market data show that the latest closing price of Soochow Securities Co.Ltd(601555) is 8.87 yuan, and the price of this allotment is 7.19 yuan. The allotment price is about 19% lower than the latest share price, which means that shareholders will bear greater losses if they do not participate in the allotment. If calculated according to the ex right price of the latest share price of 8.48 yuan, non participating investors will directly face a loss of 4.4%.
proposed allotment to raise 8.5 billion yuan
On December 9, Soochow Securities Co.Ltd(601555) announced that the company planned to allot 3 A-Shares per 10 shares to all shareholders of the company (excluding the special account for repurchase of the company) registered in China Securities Depository and Clearing Co., Ltd. Shanghai branch after the closing of the Shanghai Stock Exchange as of the equity registration date (December 14, 2021).
The total number of shares that can be allotted this time is 1151645218 shares, all of which are tradable shares with unlimited sales conditions. The allotment price is 7.19 yuan / share. The allotment is made to all shareholders (excluding the special account for repurchase of the company) through online pricing and issuance through the trading system of Shanghai Stock Exchange. The allotment code is “760555”, and the allotment is referred to as “Soochow allotment”.
The total amount of funds raised in this allotment is expected to be no more than RMB 8.5 billion. After deducting the issuance expenses, it is proposed to be used to increase the company’s capital, supplement working capital, expand the company’s business scale and optimize the business structure and asset liability structure. Specifically, the fund raised by the company for the development of capital intermediary business will not exceed 2.3 billion yuan; No more than 4.5 billion yuan for the development of investment and trading business; The investment for information technology and risk control compliance shall not exceed 300 million yuan; For capital increase of no more than 400 million yuan to wholly-owned subsidiaries; The debt repayment shall not exceed 1 billion yuan.
According to the relevant provisions of Shanghai Stock Exchange, the payment period of this allotment is from December 15, 2021 to December 21, 2021, during which the trading of the company’s shares is suspended all day; December 22, 2021 is the online liquidation period of the registered company, and the trading of the company’s shares will continue to be suspended for one day; The trading of the company’s shares will resume from the opening of the market on December 23, 2021.
Soochow Securities Co.Ltd(601555) said that the controlling shareholder of the company, Suzhou International Development Group Co., Ltd. and the persons acting in concert, Suzhou Yingcai Investment Group Co., Ltd. and Suzhou Trust Co., Ltd. have issued a commitment to fully subscribe for the placeable shares of the allotment in cash according to the shareholding ratio according to the allotment plan.
It is worth noting that this is not the first time Soochow Securities Co.Ltd(601555) allotted shares to “replenish blood”. In March 2020, Soochow Securities Co.Ltd(601555) also allotted shares to all shareholders (excluding the company’s special repurchase account) in the proportion of 3 shares per 10 shares. The total amount of funds raised by the allotment is expected to not exceed 6.5 billion yuan, and the actual fund-raising is 5.988 billion yuan.
the short-term allotment dragged down the share price
Soochow Securities Co.Ltd(601555) after the issuance announcement of allotment was issued on December 9, the share price fell back, and fell 5.42% the next day (December 10), but it stabilized rapidly in the following two trading days and rose slightly on the 14th. As of the closing on the 14th, the stock reported 8.87 yuan, up 0.11%, with a current market value of 34.4 billion yuan.
From a historical point of view, after the issuance of share allotment schemes by a number of securities companies, share prices often fell sharply.
On August 24, China Industrial Securities Co.Ltd(601377) launched a share allotment scheme of 14 billion yuan. The company announced that it plans to place no more than 3 shares per 10 shares to all shareholders. The total amount of funds raised in this allotment is expected to be no more than 14 billion yuan. After deducting the issuance expenses, it is intended to be used to increase the company’s capital and supplement working capital. The next day, China Industrial Securities Co.Ltd(601377) share price fell by the limit.
On July 21, Hongta Securities Co.Ltd(601236) announced that it would place 3 shares per 10 shares to all A-share shareholders based on the total A-share capital of 3.633 billion shares after the closing of the market on July 26. The total number of shares that can be placed is 1.090 billion, the allotment price is 7.33 yuan / share, and the raised funds are expected to not exceed 8 billion yuan. According to the relevant provisions of Shanghai Stock Exchange, the payment period of this allotment is from July 27, 2021 to August 2, 2021, during which the trading of A-Shares of the company is suspended all day. The trading day before the suspension, that is, July 26, the company’s share price fell 5%.
On March 30, Orient Securities Company Limited(600958) issued the share allotment plan. This A-share allotment is intended to be based on the total number of shares after the closing of the market on the equity registration date, and to all A-share shareholders in the proportion of no more than 3 shares per 10 shares. At the same time, H shares are also allotted to all h shareholders in the proportion of no more than 3 shares per 10 shares. The total amount of funds raised in this allotment is expected to be no more than RMB 16.8 billion. After deducting the issuance expenses, it is planned to be used to increase the company’s capital, supplement working capital, optimize the asset liability structure and serve the real economy. The day after the announcement of the share allotment plan, Orient Securities Company Limited(600958) fell 8.6%.
On February 26, Citic Securities Company Limited(600030) issued a plan for public offering of allotment shares, which is intended to be allotted to all A-share shareholders according to the proportion of no more than 1.5 shares per 10 shares based on the total number of shares after the closing of the market on the registration date of A-share allotment shares. The total amount of funds raised shall not exceed 28 billion yuan. Subsequently, the company’s share price fell by about 6% on March 1.
with allotment strategy
1. Do you want to participate in the allotment?
The most important thing is to look at the company’s texture and the use of funds. The allotment itself is neither good nor bad.
2. How to operate the allotment?
It’s simple. As long as you have this stock on the equity registration date, your trading software will display how many shares you can receive in total. Then, during the payment period of allotment, you can enter the allotment code and allotment price and buy it according to the maximum allotment.
3. Can I register multiple times?
You can buy in batches for many times and cancel the order without handling fee. However, there is no need. Since you choose to allot shares, you have to choose the way of payment.
4. What about allotment without money?
If there is no money to participate in the allotment before the equity registration date, you can sell some positions to pay the allotment. For example, full warehouse 5000 shares can not participate in the allotment, sell 1000 shares at the market price, and then discount the allotment back.
If the sale is missed before the equity registration date, the best choice is to pay for the allotment. As long as the share price does not fall below the allotment price after ex rights, the loss of allotment is less than that of non allotment.
5. Will I lose if I neither participate in the allotment nor sell shares?
have The rights will be removed after the allotment. If you do not participate in the allotment, because the number of shares remains unchanged, you will directly suffer losses.
6. Can some be matched and some not?
Not recommended. If you decide to allot shares, you’d better allot enough. Otherwise, the reason is the same as above.
7. How to calculate the number of allotments?
If you hold 10000 shares and the allotment scheme is 10 with 3, you can get 3000 shares.
If less than one share, that is, broken shares, how to calculate it? Take 1 in the order from large to small, for example, 0.90. People who break shares to 0.1 want 0.1 shares, and then come down in turn. At 0.65, all the subsequent shares will be finished, that is, all people with more than 0.65 shares are 1 shares, and all people with less than 0.65 shares are 0.
We must pay attention to accurately calculate the number of shares allotted. Of course, there will be a display in the market software. We can only apply for shares equal to or less than the number of shares that can be allotted. Otherwise, we may be rejected by the exchange due to the excessive number of entrusted subscriptions, resulting in unnecessary losses.
8. How to confirm whether the allotment is effective?
Due to the limited time for subscription and allotment of shares, those who fail to make payment within the time limit shall automatically give up the allotment of shares, and there is no way to make up the payment later. Therefore, it is very important to confirm whether the subscription is confirmed after the allotment. The allotment investor can verify it by checking the delivery order, dialing the telephone of the securities company and other ways to determine whether the subscription is effective.
It also reminds investors that it is best not to catch the last bus to participate in the allotment, so as not to have time to remedy in case of operational errors.
9. When will the allocated shares be listed?
The allotment did not arrive immediately. After the completion of the allotment payment, after the company publishes the share change announcement, the listing time shall be announced separately according to the arrangement of the stock exchange, and the trading can be carried out after listing, without the restriction period.
10. Is there money in the account that can be deducted automatically?
No. Be sure to hang up the bill manually.
11. Do you have to pay a handling fee for the allotment of shares?
no need. Commission, transfer fee, stamp duty and issuance handling fee are not required.
12. How to know the allotment information in time?
From the announcement of the news to the date of equity registration, there are generally two or three trading days. Some investors “pretend to be dead” for a long time. If they don’t know that their shares will be allotted, they will lose a lot if they neither pay money nor sell them in time. What should I do?
For the allotment information, listed companies will continuously issue announcements to remind, and securities companies will generally prompt on the market software and official website. In addition, some securities companies will notify investors by telephone, SMS and other means. Also remind you that the mobile phone should not block the service number of securities companies.
However, due to the change of investors’ contact information, there will still be cases where investors can not be contacted. Therefore, securities companies often remind investors to update their contact information in time. If you don’t watch the market often, pick up the phone now and check with the securities company to update your contact information. This is not empty talk, it is really important!
The process of share allotment needs to be passed by the board of directors, the general meeting of shareholders, the issuance and Examination Commission and the CSRC in turn. The last pass is the approval issued by the CSRC.
13. What is the difference between share allotment and share giving and conversion?
Some people think that the allotment of shares is the same as sending shares and converting shares. Just ignore it and wait for your arrival. This is really a big mistake. Transfer and share transfer belong to dividend, and share allotment is refinancing.
share distribution: convert the surplus reserve or undistributed profits into shares and distribute them to shareholders.
share conversion: convert the capital reserve into shares and distribute them to shareholders.
share allotment: share allotment is the behavior of a listed company to further issue new shares and raise funds to the original shareholders according to the needs of the company’s development.
It can be seen that the main difference between sending shares and converting shares lies in different stock sources. For individual investors, it is only different financial treatment, which does not need to be studied in depth. There is no need to pay for the shares sent or transferred, and the shares sent or transferred can be allowed to arrive in the account.
But the allotment of shares is very different. It belongs to an option. You can allot shares or not. If you want to allot shares, you must choose them manually. If you have money in your account, you will not allot them to you. Once you hold the shares on the equity registration date and do not allot shares, it will be regarded as giving up and will suffer discount losses.
14. Is the calculation of the ex right price of share allotment, share delivery and share conversion the same?
dissimilarity.
There may be only one thing in common between share allotment, share distribution and share conversion: they all have to be ex rights. But the calculation of ex right price is different.
For example, for a stock of 10 yuan, 10 will be given / transferred / allocated 2, the allotment price will be 8 yuan, and the ex right price is:
Share offering and conversion: 10 yuan / (1 + 0.2) = 8.33 yuan;
Allotment: (10 yuan + 8 * 0.2) / (1 + 0.2) = 9.67 yuan.
Soochow Securities Co.Ltd(601555) the share price of the proposed 8.5 billion yuan allotment was “scared down”
The share price fell by more than 5%! After throwing out the 8.5 billion yuan allotment plan, Soochow Securities Co.Ltd(601555) led the decline in the securities sector
(Securities Times)
