Private placement has always been favored by institutional investors because of its discount safety cushion. However, at the time of market adjustment, the fixed increase safety cushion is still unable to resist the floating loss. Recently, the ban on fixed increase of several stocks has been lifted, and the share price is still significantly lower than the issuance price of fixed increase, many of which are popular stocks participated by funds and other institutions.
multiple stocks recently lifted
share price has already fallen below the fixed increase price
The A-share market has been turbulent in the last half year. The individual stocks that were scheduled to increase six months ago have been lifted one after another recently. This should have been the joy of lifting the ban, but many stocks still have obvious floating losses, and many funds and other institutions subscribe.
For example, Mango Excellent Media Co.Ltd(300413) , which just lifted the ban on fixed additional shares, was listed on August 24 last year and lifted for six months on February 24 this year. The issue price was 49.81 yuan. The latest closing price of the stock was only 34.27 yuan, down 31.2% from the issue price. China Europe Fund and Xingquan fund have subscribed for a large number of fixed increase shares, with a subscription amount of 16.06 million shares and 14.05 million shares respectively, with a subscription amount of 800 million yuan and 700 million yuan respectively. Xie Zhiyu’s Xingquan Heyi and Xingquan Herun will be involved in the next 18 months.
In addition, the issuance price of Jiangsu Yoke Technology Co.Ltd(002409) , which will be lifted in early March this year, is set to increase by 91 yuan, and the latest share price is only 63.47 yuan, falling below the fixed increase price by more than 30%. Well-known institutions such as Wells Fargo fund, UBS group and Taikang asset management are all involved. The issue price of Estun Automation Co.Ltd(002747) , which was listed in July last year, was 28 yuan. When the ban was lifted in early January this year, the share price was about 24 yuan, and the share price also fell below the fixed increase price by more than 10%. JPMorgan Chase Bank, Morgan Stanley International, Wells Fargo fund, South Fund and other institutions participated.
More stocks break as soon as they increase. For example, Maccura Biotechnology Co.Ltd(300463) , participated by Xingquan fund and Gaoyi assets, was listed on February 18, with an issue price of 28.11 yuan and the latest closing price of 27.08 yuan, falling below the issue price by 3.66%. Similarly, Crystal Clear Electronic Material Co.Ltd(300655) has broken more than 10% of the shares listed in early February.
fixed additional shares decreased
fund still actively participates
Affected by market turbulence, Spring Festival and other factors, the number of fixed increase stocks has decreased significantly in the last two months. In November and December 2021, the number of fixed increase stocks was 42 and 69, with fixed increase amounts of RMB 1996 billion and 125.2 billion; By January and February this year, the number of fixed additions had dropped to 32 and 19, with a total fund-raising amount of only more than 70 billion yuan.
Some institutions said that although the fixed increase and discount provides a certain safety cushion, it does not mean that they will be able to make money. Many factors such as stock valuation, prospect and market environment should also be considered. Therefore, when selecting the participating targets, we should make a decision based on all aspects of the situation, and be more cautious when the market is expected to be weak.
However, in the recent issuance of fixed additional shares, there are still many funds and other institutions actively participating. For example, for Shenzhen Forms Syntron Information Co.Ltd(300468) , which was listed on March 2, the subscription institutions include Huaxia Fund, Goldman Sachs, Huatai Securities Co.Ltd(601688) , Citic Securities Company Limited(600030) and other well-known institutions; At the end of February, Shennan Circuits Co.Ltd(002916) , which was listed with fixed additional shares, was subscribed by Huatai Securities Co.Ltd(601688) , JPMorgan Chase Bank, Bank of Switzerland Hong Kong Branch, CAITONG fund, China Europe Fund and other institutions.
