Recently, the news that Hemai shares will use a large amount of over raised funds to buy financial products has attracted market attention.
According to the data of Securities Daily, since December, as of December 21, 25 new shares of A-Shares have been listed, of which 21 have been over raised, accounting for more than 80%, all from the science and innovation board or the gem. In terms of over raising, 9 new shares were over raised by more than 2 times, up to 9 times. This also makes investors pay attention to the use of over raised funds – where is the over raised money used?
The reporter found that from the announcement of relevant companies in December, the over raised funds are mainly used to supplement working capital, purchase financial products, invest in new projects, etc. Industry experts generally believe that the purchase of financial products with large amount of over raised funds is compliant, but not necessarily the optimal solution. Listed companies should use the over raised funds in the fields related to their main business, enhance their core competitiveness, promote the development of the real economy, bring good investment returns to enterprises and investors and form a virtuous circle. In addition, the rules related to the use of raised funds also have room for optimization.
is mostly used to supplement working capital
According to the data of East Money Information Co.Ltd(300059) choice, the reporter found that since December, at least 28 listed companies have disclosed the use of over raised funds. From the perspective of use, 17 are used to permanently supplement working capital, 9 are used to buy financial products, and the rest are used to invest in new projects. In addition, some listed companies have made diversified arrangements for over raised funds, which are used to supplement working capital and purchase financial products at the same time.
“Over raised funds can usually be used for permanent replenishment of working capital and repayment of bank loans, which belongs to expanding the main business. There are clear use specifications for over raised funds, and enterprises have their own strategic decisions in operation, which does not mean that it is the most correct choice to use all funds for operation.” Yan Kaiwen, chief strategic analyst of Huaxin securities, said in an interview with the Securities Daily.
However, some listed companies use a large amount of over raised funds to buy financial products, which has also aroused doubts from some investors. Some listed companies said that purchasing financial products with over raised funds is conducive to improving fund use efficiency, obtaining good investment return, further improving the overall performance level of the company and protecting the interests of shareholders.
“It is not the most reasonable choice for listed companies to use a large amount of over raised funds to buy financial products.” Wang Jiyue, a senior investment banker, told the Securities Daily, “it is a waste of social resources that a large amount of funds are idle in enterprises. Enterprises may not need so much funds in a short time. We should find ways to guide these funds back to the market to make more efficient use of funds.”
“Most industrial companies lack professional investment ability and risk control ability. Moreover, using the over raised funds to buy financial products does not meet the original intention of raising funds in the securities market.” Zhang Lei, member of Huatai joint securities Executive Committee, told reporters.
encourage over raised funds to invest in the main business
The reporter noted that on December 15, a science and innovation board company announced that it would use the over raised funds to acquire and increase the capital of its industrial chain enterprises, so as to enhance the competitiveness of its main business.
The above company announced that it plans to use RMB 70 million of over raised funds to acquire 60% equity of an enterprise in its industrial chain, and then use some over raised funds to increase its capital. After the capital increase is completed, it will hold 66% equity of the enterprise and obtain the controlling right. The company believes that the transaction is conducive to further improving the company’s main business layout, improving operating efficiency, enhancing market competitiveness and sustainable development potential.
“Listed companies will use the over raised funds to acquire and integrate upstream and downstream enterprises in the industrial chain, which is the direction that needs to be encouraged.” Zhang Lei said that allocating resources to high-quality industries and improving the core competitiveness of enterprises through the development of main industries can provide more jobs, improve the utilization efficiency of resources in the whole society and form a virtuous circle of funds.
Zhang Lei said that for such enterprises, securities service institutions need to sort out their comprehensive industrial chain, study and formulate clear development strategies, and guide enterprises to make efficient use of over raised funds. At the same time, it is also necessary to supervise the use of over raised funds, put forward reasonable opinions, avoid investment risks, give full play to capital advantages and promote the good development of enterprises.
Over raised funds for investment in the main business is also the direction of regulatory encouragement. According to relevant regulations, if the science and innovation board company uses the over raised funds for projects under construction and new projects (including asset acquisition, etc.), it shall invest in the main business, conduct a scientific and prudent feasibility analysis of the investment project, submit it to the board of directors for deliberation and approval, and the independent directors, the board of supervisors, the sponsor or the independent financial consultant shall express their explicit consent, And timely fulfill the obligation of information disclosure.
Experts generally expressed the need to further improve the relevant systems for the use and management of raised funds. Yan Kaiwen believes that under the registration system, it is necessary to strengthen the relevant management of over raised funds. It is suggested to link the use of over raised funds with the refinancing of listed companies. Listed companies that have not used up the raised funds should not refinance. In addition, if there are serious problems in the use of over raised funds, relevant restrictions shall be imposed on the refinancing of listed companies.
Wang Jiyue believes that to improve the relevant systems of over raising, we need to give full play to the guiding role of rules and establish market-oriented solutions. In this regard, he put forward four suggestions: first, allow the repurchase of over raised funds. When the restrictions on public shares are touched, allow the share expansion of capital reserve to more than 400 million shares before repurchase, which is conducive to solving the problem of waste of idle funds; Second, let the over raised idle funds return to the market through the strategic placement fund channel to support the IPO of more entity enterprises; Third, modify relevant rules to increase the actual circulation at the beginning of listing by means of securities lending and promote market-oriented issuance pricing; Fourth, appropriately accelerate the supply of new shares and promote more rationalization of issuance pricing.
(Securities Daily)
