Not surprisingly, Bank of Lanzhou will land in the A-share capital market in early January next year and become the first bank to be successfully listed in 2022.
In 2021, which is about to end, four banks have successfully landed in the A-share market. Compared with only one bank successfully listed in 2020, the pace of bank listing has been significantly accelerated this year.
Although there are 4 successful listed banks, only Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) and Bank of Lanzhou have held the meeting this year, and the other listed banks have held the meeting in 2020. “This may be related to the fact that in recent years, the development and Examination Commission has paid more attention to the implementation of non-performing loans, regulatory penalties and rectification of small and medium-sized banks, ownership structure and internal governance.” A banking analyst who was inconvenient to be named told the interface news reporter.
So, will bank listing usher in an “outbreak” in 2022?
4 banks log in A-Shares
After last year’s downturn, 2021 has become a “big year” for banks to be listed.
In 2021, Bank Of Chongqing Co.Ltd(601963) , Qilu Bank Co.Ltd(601665) , Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) and Shanghai Rural Commercial Bank Co.Ltd(601825) were listed, raising a total of 16.027 billion yuan.
On February 5, Bank Of Chongqing Co.Ltd(601963) which has been listed on H shares successfully “returned to a”, becoming the first bank to be listed on A-Shares during the year; Qilu Bank Co.Ltd(601665) , Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) successively completed the A-share listing on June 18 and June 25; On August 19, Shanghai Rural Commercial Bank Co.Ltd(601825) was listed on the main board of Shanghai Stock Exchange. So far, A-Shares ushered in the 41st listed bank and the 10th listed rural commercial bank.
From a longer historical perspective, in the five years from 2016 to 2020, the number of newly listed banks in A-Shares was 8, 1, 3, 8 and 1 respectively.
The opening of commercial banks’ listing should start in 2016. In that year, eight banks including Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) , Bank Of Shanghai Co.Ltd(601229) , Bank Of Guiyang Co.Ltd(601997) , Bank Of Jiangsu Co.Ltd(600919) were successfully listed, raising a total of 29.4 billion yuan.
In 2017, the bank’s IPO fell into a downturn, and only Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) 1 banks were listed, raising 790 million yuan.
In 2018, the bank’s listing recovered, with a total of Bank Of Changsha Co.Ltd(601577) , Bank Of Zhengzhou Co.Ltd(002936) and Bank Of Chengdu Co.Ltd(601838) 3 banks listed, raising a total of 8 billion yuan.
In 2019, the pace of bank listing has accelerated significantly, as many as 8 banks have successfully landed in the A-share market, and the types of listed banks are complete. There are not only large state-owned banks Postal Savings Bank Of China Co.Ltd(601658) , but also joint-stock banks China Zheshang Bank Co.Ltd(601916) , urban commercial banks and rural commercial banks such as Bank Of Xi’An Co.Ltd(600928) , Chongqing Rural Commercial Bank Co.Ltd(601077) . Eight banks raised a total of 65.4 billion yuan, of which Postal Savings Bank Of China Co.Ltd(601658) raised 32.7 billion yuan, accounting for nearly half of the total amount raised in the year.
In 2020, the review process of Bank IPO slowed down significantly, and only Xiamen Bank Co.Ltd(601187) one successfully landed in a shares.
In 2021, only Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) and Bank of Lanzhou held the meeting.
Su Xiaorui, senior analyst of Analysys, told the interface news reporter that there are many factors behind this: first, affected by the epidemic environment, the asset quality and operation status of the whole banking industry are under pressure; Second, in the capital market, regulators are more cautious about bank listing, and various questions and feedback in the regulatory inquiry letter are one of them; Third, the bank’s multi-channel capital replenishment is further expanded, and listing is not the only way to replenish capital; Fourth, large and medium-sized banks with good business conditions have basically been listed. At present, small and medium-sized banks, the main force queuing to participate in the application, do not perform as well as large banks in terms of business conditions, need to go through more review processes, and the queuing time is longer.
sufficient reserve
What will happen to the listing of banks in 2022?
Not surprisingly, Bank of Lanzhou will become the first bank to land in the A-share market in 2022. On December 14, the Bank of Lanzhou issued the prospectus for the initial public offering of shares, and the subscription is scheduled to start on January 5, 2022. It plans to issue 570 million new shares at RMB 3.57/share.
However, the issue price of 3.57 yuan / share has aroused heated discussion in the market for two reasons: first, the price to book ratio corresponding to the issue price of the share is 0.82 times, which is lower than the net assets per share before the issue of 4.43 yuan and the net assets per share after the issue of 4.33 yuan; Second, the P / E ratio of the stock after issuance reached 22.97 times, higher than the industry average.
On December 20, the relevant person of Bank of Lanzhou responded to the interface news reporter and said, “the issue price is a multi factor negotiation based on comprehensive fundamentals, combined with regulatory requirements, the fundamentals of our bank and the protection of investors, and finally determined such a price.”
The above person further said, “referring to the financial data of 2020, our issuance price was affected by the epidemic last year, and the performance was relatively the most affected year. This year has returned to the level of previous years. Referring to this year’s finance, the P / E ratio of issuance is about 12 times that of other banks, which is not too high.”
Although Lanzhou bank “made a good start”, the bank held its meeting in September 2021. So, after experiencing the “downturn” in 2021, will there be a small “outbreak” in 2022?
China Everbright Bank Company Limited Co.Ltd(601818) financial market analyst Zhou Maohua told the interface news reporter that the number of IPOs of small and medium-sized banks is expected to increase slightly next year. From the supply side, some small and medium-sized banks in China actively broaden financing channels and alleviate financing pressure. At present, there are still a lot of Bank IPO queues. From the demand side, the economy has further returned to normal, and the bank’s profit outlook is optimistic.
Some investment bankers told the interface news reporter, “it is difficult for banks to have an outbreak period when they are listed, because almost all urban commercial banks in large and medium-sized cities are listed, and the rest are local banks in third and fourth tier cities, with less profitability and asset quality.”
He Nanye, a special researcher of Suning Financial Research Institute, believes that the explosive stage of Bank IPO has passed, especially the listing of small and medium-sized banks with poor qualifications will face great uncertainty. From the current trend, the follow-up Bank IPO audit will only be more and more strict, and it is difficult to greatly improve the number of listed banks.
Su Xiaorui said that the trend of bank listing next year is closely related to the macroeconomic environment and regulatory environment. It is expected that the bank’s listing work will still be orderly and steadily promoted without significant changes.
According to the data, up to now, 12 urban rural commercial banks have been in the IPO queue and the audit status is “pre disclosed and updated”, including Huzhou bank, Dongguan bank, Bank of Guangzhou, Chongqing Three Gorges bank, Jiangsu Dafeng rural commercial bank, Anhui Ma’anshan rural commercial bank, Guangdong Nanhai rural commercial bank, Guangdong Shunde rural commercial bank, Xiamen rural commercial bank, Bozhou Yaodu rural commercial bank Jiangsu Haian rural commercial bank and Jiangsu Kunshan rural commercial bank.
In addition, 20 banks such as Bank of Hubei, Beijing Rural Commercial Bank, Bank of Hebei and Bank of Gansu are currently in the IPO counseling period, and some banks have been counseling for more than 8 years.
In fact, small and medium-sized banks still face greater pressure on capital replenishment. Data show that since this year, including perpetual bonds, secondary capital bonds and convertible bonds, the scale of bank bond issuance has exceeded trillion yuan, of which small and medium-sized banks have an absolute advantage in the number of bonds issued. Compared with equity financing methods such as fixed growth and preferred shares, perpetual bonds and secondary capital bonds dominate.
(interface News)
