The quota of “green shoes” has been used up. Baiji Shenzhou fell all the way.
Baiji Shenzhou continued to fall after its listing broke on December 15. As of the closing on December 24, its share price was reported at 146 yuan / share, down more than 24% from the issue price. Star fund managers such as Ge Lan, Hu Xinwei and CAI Songsong participated in the fight, and all their funds were covered.
Insiders said that with the deepening of the reform of the registration system, the “invincible golden body” of new shares that only rise but not fall has been gradually broken. It is expected that the new yield next year will decline by 50% compared with this year.
“green shoes” quota exhausted in 6 days
On December 22, Baiji Shenzhou announced that as of December 20, 2021, the cumulative number of shares repurchased by the authorized lead underwriter had reached the limit of the number of shares issued by the over allotment option. The underwriter China International Capital Corporation Limited(601995) paid a total of 2.827 billion yuan to buy 17.258 million shares from the secondary market.
Source: company announcement
“Over allotment right”, commonly known as “green shoes”, is used to stabilize the aftermarket within 30 days after the listing of new shares. If the share price is lower than the issue price due to market fluctuations, the underwriter will buy shares from the market to stabilize the secondary market price.
Baiji Shenzhou was listed on the gem on December 15, with an issue price of 192.6 yuan / share. It opened at 176.96 yuan / share on the first day of listing, which directly fell below the issue price, and continued to fall in the next few days.
The “green shoe” mechanism often acts as a “protective plate” in the market. Baiji Shenzhou was listed on the 6th, and the quota of “green shoes” was all used up.
top flow fund manager quilt
Many institutions participated in the innovation of Baiji Shenzhou. According to the announcement on offline preliminary placement results and online winning results released by Baiji Shenzhou on December 6, in offline placement, class a investors (public offering products, social security funds, pensions, enterprise annuity funds and insurance funds) effectively subscribed 20.18 billion shares, accounting for 80.31% of the effective offline subscription, and initially allocated 48.484 million shares, accounting for 86% of the total offline issuance, The placing proportion is 0.24%.
On December 8, Baiji Shenzhou issued an announcement on the issuance results, which showed that the number of offline investors giving up the subscription of new shares was 0. Among all the public funds participating in Baiji Shenzhou’s new public offering, there is no lack of funds under a group of star fund managers.
For example, Ge Lan’s China Europe medical and health mixed fund and Hu Xinwei’s huitianfu consumer industry mixed fund were allocated 19217 shares with an amount of 3.701 million yuan; Cai Songsong’s noan innovation driven flexible allocation hybrid fund was initially allocated 4323 shares with an amount of 833000 yuan.
new revenue or decline next year
Since October this year, the breaking of new shares on the first day of listing has occurred many times. Industry insiders said that this is not only related to market factors, but also related to the increase in the issuance price of new shares under the new rules.
Guoyuan Securities Company Limited(000728) believes that with the deepening of the reform of the registration system, the proportion of high tick is reduced, the price of new shares is raised, the winning rate is reduced, and the “invincible golden body” of new shares is gradually broken. The importance of institutional pricing power is gradually highlighted, and the return risk ratio of playing a new strategy will also return to other low-risk strategies in the market. It is estimated that in 2019, 2020 and 2021, the peak yield of 200 million public offering long products is 13%, 17% and 11%, and the peak yield of 700 million fixed income + products is 5.5%, 8% and 4.5%. It is expected that the yield next year will decline by 50% on the basis of this year.
(China Securities Journal)
