With the continuous promotion of the registration system, the number and amount of IPOs in the A-share market reached a record high in 2021.
According to the data, as of December 28, the total number of A-share listed new shares has reached 520 since 2021, including 121 listed enterprises under the approval system (87 on the main board of Shanghai stock market and 34 on the main board of Shenzhen stock market), 160 and 198 listed enterprises on the science and innovation board and gem respectively, and 41 listed enterprises on the Beijing stock exchange.
Overall, 520 listed companies raised more than 540 billion yuan in 2021, compared with 437 A-share IPO companies in 2020, raising a total of 480.6 billion yuan. In 2021, the number of IPO companies and fund-raising amount increased by 18.99% and 12.36% respectively year-on-year.
Industry insiders expect that with the accelerated reform of the registration system, the number of IPOs and fund-raising will remain high in the future. More and more entity enterprises are expected to land in the capital market and use the capital market to achieve high-quality development.
“The normalized IPO has taken shape. Under the background of the future registration system, the pace of IPO will only accelerate year by year, not slow down. Of course, with the increase of IPO, the liquidity pressure of the stock market can not be ignored. To support the larger issuance of A-share IPO, we need to rely on the further opening of A-share. On the one hand, we will attract Chinese funds to equity investment and use the wealth effect to stimulate Enthusiasm, on the other hand, through opening up to attract foreign capital to enter China and invest in a shares. ” Pan Helin, executive director of the Digital Economy Research Institute of Central South University of economics and law, was interviewed and pointed out.
nearly 70% of IPOs are issued under the registration system
Since the implementation of the registration system reform, the listing efficiency of enterprises has been significantly improved, and a large number of scientific and technological innovation enterprises have poured into the capital market.
According to the 21st Century Business Herald reporter, nearly 7 of the enterprises that have landed in the A-share market since this year have been issued through the registration system. In 2021, there were 358 IPO companies on the science and innovation board and gem, accounting for 68.85%, raising funds of RMB 2007.11 billion and RMB 146.278 billion respectively. The number of IPOs on GEM ranks first, and the financing amount of science and Innovation Board ranks first.
In November 2021, after the opening of the Beijing stock exchange, another 41 enterprises landed A-Shares through the selected layer of the new third board, raising a total of 7.508 billion yuan. The number of IPOs and the amount of financing accounted for 7.88% and 1.39% of the total number of the whole year respectively.
In addition, among a number of enterprises, one company is relisted for delisted shares. On November 10, Shenzhen Stock Exchange issued an announcement on the re listing of huilv Ecological Technology Group Co., Ltd. and huilv ecological shares were listed and traded from November 17, 2021.
According to the data, huigreen ecology suspended the listing of the company’s shares since March 22, 2004 and terminated the listing from July 4, 2005 due to losses for three consecutive years in 2001, 2002 and 2003. On June 19, 2019, the company submitted an application for re listing of shares to the Shenzhen Stock Exchange. On August 20, the Shenzhen Stock Exchange made a decision on re listing of the company’s shares.
Huilv ecology said that since the termination of listing in 2005, the company has reduced the debt burden through bankruptcy reorganization, and attracted powerful restructuring parties to inject high-quality assets of sustainable profitability into the company through major asset restructuring, so that the company has restored its profitability; Through the split share structure reform, the company’s non tradable shares have obtained the circulation right and eliminated the differences in the nature of the company’s equity.
Overall, the IPO companies listed in 2021 are mainly technology stocks. In terms of industry distribution, the largest number of listed enterprises are computer, communication and other electronic equipment manufacturing, with a total of 62 enterprises listed; The second is the special equipment manufacturing industry, with a total of 54 enterprises listed; The remaining chemical raw materials and chemical products manufacturing industry, electrical machinery and equipment manufacturing industry have 37 and 35 enterprises listed respectively.
From the perspective of intermediaries, the head organization is still the biggest “winner” this year, Citic Securities Company Limited(600030) , China Securities Co.Ltd(601066) , Haitong Securities Company Limited(600837) independently recommended 59, 39 and 34 enterprises to be listed successfully, helping the total scale of funds raised by enterprises to be 89.524 billion yuan, 39.14 billion yuan and 30.101 billion yuan respectively.
In addition, Citic Securities Company Limited(600030) and Minmetals Securities Co sponsored Hunan Changyuan Lico Co.Ltd(688779) (raising 2.725 billion yuan), China Securities Co.Ltd(601066) and China International Capital Corporation Limited(601995) co sponsored China Telecom Corporation Limited(601728) (47.904 billion yuan), Haitong Securities Company Limited(600837) and Guotai Junan Securities Co.Ltd(601211) co sponsored Shanghai Rural Commercial Bank Co.Ltd(601825) (raising 8.584 billion yuan), etc.
Some small and medium-sized institutions also successfully counter attacked in this IPO feast. For example, Minsheng securities has 30 projects listed this year, raising a total of 18.405 billion yuan. Anxin securities and Sinolink Securities Co.Ltd(600109) have 20 and 19 projects listed respectively, raising 10.296 billion yuan and 13.317 billion yuan respectively.
new myth no longer
In terms of fund-raising, affected by the enterprise texture, market environment, industry policies and other aspects, the fund-raising situation of various enterprises also presents a state of ice and fire.
Among the enterprises listed on the science and innovation board, the gem and the Beijing stock exchange, a total of 109 enterprises realized over raising funds, accounting for nearly 30%, but 244 enterprises also failed to raise funds as expected. The biggest difference is Dook Media Group Limited(301025) . The company originally planned to raise 269 million yuan, but it actually raised nearly 62 million yuan, with an issue price of only 1.55 yuan / share.
In contrast, among the enterprises with high fund-raising amount, there are as many as 25 enterprises that have raised more than twice as much, of which the largest number is Hemai shares. The company originally planned to raise 730 million yuan, but the actual fund raised was 5.578 billion yuan, and its issuance price reached an ultra-high price of 557.80 yuan / share, ranking the highest among the new shares in 2021.
The reason for the over raising of large-scale enterprises is not only related to enterprise qualification and market sentiment, but also related to the latest inquiry and new regulations. The 21st Century Business Herald reporter noted that most of the A-share enterprises over raised this year are new shares issued after September 2021.
In September 2021, after the phenomenon of “institutions holding together to lower the price”, the CSRC, the Shanghai and Shenzhen Stock Exchange and the Securities Industry Association simultaneously issued a series of rule adjustments for issuance and underwriting under the registration system (hereinafter referred to as the “new inquiry rules”). The new inquiry rules exceeded the requirement of delaying the issuance by improving the high price elimination ratio and canceling the pricing Strengthen the supervision of inquiry and quotation, promote the balanced game between buyers and sellers, and improve the marketization level of issuance pricing.
After the implementation of the new inquiry rules, the final issue price of many enterprises broke through the “lower of four” to realize over raising.
However, it is worth mentioning that with the rise of the issuance price of enterprises and the decline of the yield of investors, the breaking of new shares on the first day is no longer new in the A-share market.
According to the data, since 2021, as of December 27, a total of 18 IPO companies broke on the first day of listing, setting a new breaking rate since 2012.
The most typical one is Liaoning Chengda Biotechnology Co.Ltd(688739) . During the inquiry stage, the company was popular with institutions, with an issue price of 110 yuan / share, an issue P / E ratio of 54.24 times, an industry average p / E ratio of more than 38.11 times, and an over raised capital of more than twice. However, it broke off quickly on the first day of listing, and the share price immediately fell by 37.5%, which is the new share with the largest decline on the first day of listing in 2021.
However, in the view of many market participants, the breaking of new shares on the first day is a normal phenomenon.
Wang Jiyue, a former senior investment banker, pointed out: “The revision of the pricing rules is not aimed at issuing at a low price, but at the act of holding a group. Holding a group distorts the market and can not truly reflect the views of inquiry institutions on new shares. In the pricing mechanism, the issue price is dominated by inquiry institutions, and the bid of inquiry institutions basically determines the final issue price. It is normal to break, and it is not normal to play a new without risk.”
Wang Jiyue said: “before (playing New) has been making money, and it is expected that the high-point quotation can also be made; with the rapid breaking of new shares and the continuous increase of cases, the quotation will be cautious, and the new IPO company will press the issuance price; it is unlikely that the subsequent new shares will continue to break, but they will not always earn high profits.”
Pan Helin also pointed out that the new bonus will eventually disappear in the future.
“In essence, before and after the listing of new shares, only a financing was obtained, and its business logic and fundamentals have not changed. The practice of realizing new income through short-term speculation is unsustainable. There will be a certain premium in the new market at the stage of abundant liquidity at the beginning of the next year, but in the future, the new premium will be flat. For those with good fundamentals, it is not sustainable City companies, the new premium will still be very high, but for those listed companies with general fundamentals, it will be normal for the premium to disappear or even break at the opening. ” Pan Helin said.
the A-share IPO market is expected to continue its prosperity
Looking forward to 2022, many market participants believe that the A-share new share market is expected to continue to grow with the support of the rising number of new shares on the Shanghai Science and innovation board, the gem and the Beijing stock exchange.
According to the reporter’s statistics, as of December 27, 152 enterprises have been accepted but not yet registered on the science and innovation board, and 376 enterprises have been accepted but not yet registered on the gem. The number of enterprises in normal audit status of Beijing stock exchange also reached 55, and another 4 enterprises suspended the audit for various reasons.
Deloitte China capital market service department predicts that most of the new shares in the A-share market will come from small and medium-sized manufacturing and technology enterprises. In 2022, it is estimated that there will be 170 to 200 new shares on the Shanghai Science and innovation board, raising RMB 210 to 250 billion; Or another 210 to 240 new shares were listed on the gem, raising 160 to 180 billion yuan. Shanghai and Shenzhen mainboards are expected to have 120 to 150 new shares raising 200 to 230 billion yuan.
In addition, due to various reasons such as changes in policies and regulations, the upsurge of listing China concept shares in the United States decreased significantly in the second half of the year, and some market participants expect some projects to flow into the A-share market.
“First, the full implementation of the registration system may lower the threshold for A-share IPO. Second, it is necessary to further promote the construction of standardized systems such as delisting system and capital market stratification, so as to promote the IPO situation that A-Shares can go in and out, and can go up and down. Third, American stocks may seek the secondary listing of Hong Kong stocks and A-Shares to avoid potential risks, which also brings more high-quality listed companies to a shares. ”Pan Helin said.
(21st Century Business Herald)
