The termination of the project or the expiration of the approval has become the norm in the fixed growth market.
Data show that 137 listed companies terminated fixed growth in the first 11 months of this year, mainly due to changes in regulatory policies and market environment. Among them, some companies automatically lose their validity when the approval expires, and some companies terminate when the validity of the approval is about to expire.
Many market participants believe that this phenomenon is the embodiment of marketization. Now the supply of fixed growth projects is in short supply, and the cost performance of institutional investors participating in fixed growth is improving. “Iron must be hard.” A brokerage investment bank believes that listed companies should strive to improve fundamentals.
approvals expire
On November 30, Sichuan Fulin Transportation Group Co.Ltd(002357) and Hangzhou Innover Technology Co.Ltd(002767) announced the termination of the non-public offering of A-Shares in 2020. The two listed companies had been brewing the fixed increase for more than a year. Turning to the reasons for termination, both companies said that they were related to changes in the capital market environment.
According to the statistics of the Securities Times reporter on the data, in the first 11 months of this year, 137 listed companies “stopped” fixed growth (non M & A), including 6 in November and 8 in October.
The reporter of the Securities Times noted that among the fixed increases terminated by 137 listed companies, the fixed increases of some listed companies have actually been approved by the regulators. According to incomplete statistics, this year, more than 20 listed companies terminated due to the expiration or imminent expiration of the fixed increase approval.
For example, Hangzhou Innover Technology Co.Ltd(002767) , the company obtained the fixed increase approval from the CSRC in December last year. Hangzhou Innover Technology Co.Ltd(002767) said that after receiving the approval, the company actively promoted the issuance with intermediaries, but the 12-month validity period of the approval is about to expire, and many changes have taken place in the capital market environment, financing opportunity and other factors since the preparation of the fixed increase.
In addition, the fixed increase approvals of many listed companies such as Fuda Alloy Material Co.Ltd(603045) , Shenzhen Kingsun Science & Technology Co.Ltd(300235) , Wuhan Zhongyuan Huadian Science And Technology Co.Ltd(300018) , North China Pharmaceutical Company.Ltd(600812) expired in November.
From the above cases that have been approved but have terminated fixed growth, most of the listed companies are small and medium-sized companies. More than 60% of the companies have a market value of less than 5 billion yuan, nearly 60% of the companies have an average daily stock turnover of less than 100 million yuan, and half of the companies had a net profit of less than 50 million yuan last year.
A private equity person in Central China said that at present, the fixed growth market is divided greatly, institutional investors are grabbing the project share, and the price is rising; No one cares about projects with general qualifications. A private placement person in Shenzhen also expressed a similar view, but he believes that small market capitalization companies also have good projects, which can not be completely one size fits all. “The subject matter is mainly selected according to financial indicators and industry track”.
An investment banker from a securities firm in South China told the securities times that now listed companies may not be able to issue the fixed growth approval, resulting in failure. This is an important manifestation of marketization. “At present, the supply of fixed growth projects exceeds the demand, which belongs to the buyer’s market, and it has become the norm that they can’t issue them.”
the fixed increase of war investment is still under strict supervision
In addition to Sichuan Fulin Transportation Group Co.Ltd(002357) and Hangzhou Innover Technology Co.Ltd(002767) , another listed company – Tianjin Capital Environmental Protection Group Company Limited(600874) finally withdrew its fixed growth plan after adhering to it for one year in November. The difference is that Tianjin Capital Environmental Protection Group Company Limited(600874) previously planned to launch “fixed price increase for strategic investors”.
According to the original plan, Tianjin Capital Environmental Protection Group Company Limited(600874) plans to introduce strategic investors Changjiang environmental protection group and Three Gorges capital, and the latter is the concerted action of the former. After consulting the regulators, the Three Gorges capital withdrew from the list of strategic investors.
However, on November 23, Tianjin Capital Environmental Protection Group Company Limited(600874) said that in view of the changes in national policies and capital market environment, and taking into account the actual situation of the company, development planning and many other factors, it decided to terminate the fixed increase after repeated communication with intermediaries. On the same day, the company disclosed the new fixed increase plan, which no longer belongs to the fixed increase of war investment lock price, but the fixed increase of inquiry, and the fund-raising scale was reduced from the original 1.8 billion yuan to 831 million yuan.
It is not difficult to see that the “war investment lock price increase” is still under strict supervision. Zhejiang Dahua Technology Co.Ltd(002236) on December 1, the war investment lock price fixed increase plan was revised to adjust the strategic investor China mobile capital introduced in the original plan to China Mobile.
Several insiders told the securities times that it is difficult for strategic investors with PE background to pass the identification of regulators.
Of course, some war investment lock prices are still increasing, such as Ningbo Zhoushan Port Company Limited(601018) , China Merchants Port Group Co.Ltd(001872) , Guangzhou Shangpin Home Collection Co.Ltd(300616) , East China Engineering Science And Technology Co.Ltd(002140) , Shanghai Electric Power Co.Ltd(600021) , Shanghai Pharmaceuticals Holding Co.Ltd(601607) . According to the reporter of the securities times, in the cases that are still being promoted, most of the strategic investors are state-owned enterprises, and only Guangzhou Shangpin Home Collection Co.Ltd(300616) war investment Jingdong introduced is a private enterprise.
it is not easy to issue fixed increase projects
From the implementation of fixed increase projects in the first 11 months of this year, some fixed increase issues were less than expected.
In terms of fixed increase fund-raising, the fund-raising of 125 listed companies did not meet expectations in the first 11 months, accounting for a large proportion. From the perspective of the industry, companies with a large gap between the actual fund-raising scale and the target are concentrated in the securities industry. Specific projects include Zheshang Securities Co.Ltd(601878) , Tianfeng Securities Co.Ltd(601162) , Xiangcai Co.Ltd(600095) , Dongxing Securities Corporation Limited(601198) , etc.
According to public information, Zheshang Securities Co.Ltd(601878) originally planned to raise 10 billion yuan, but the actual fund-raising was only 2.805 billion yuan, and the “fund-raising difference” reached more than 7 billion yuan, ranking first among listed companies. Xiangcai Co.Ltd(600095) originally planned to raise 4.7 billion yuan, but actually raised 1.737 billion yuan; Dongxing Securities Corporation Limited(601198) originally planned to raise 7 billion yuan, but actually raised 4.493 billion yuan.
The above situation is obviously closely related to the market performance of securities companies during the year. Data show that the non bank index has fallen by more than 20% this year, and some institutional investors have suffered floating losses in the agreed increase of bonds.
Take Tianfeng Securities Co.Ltd(601162) as an example, the company’s fixed additional shares were lifted on October 29, but it is still in a broken state. This means that institutional investors involved in Tianfeng Securities Co.Ltd(601162) fixed value-added projects China Life Insurance Company Limited(601628) asset management, Sino Italian asset management, CAITONG fund, Galaxy Securities, Shenwan Hongyuan Group Co.Ltd(000166) securities, open source securities, Federal Reserve securities, Donghai securities and other book floating losses.
(Securities Times)
