Telecom past is still in front of us, and the pressure of mobile breaking still exists.
China Mobile finally put on “green shoes”?
On January 6, the share price of China Mobile (600941. SH) on the second day of listing approached the breaking line, touching the issue price of 57.58 yuan for many times since early trading. It is worth noting that since the morning, nearly 1 million people have paid at the price of 57.58 yuan.
As of noon closing, China Mobile closed at 57.6 yuan / share, down 0.48%.
Yesterday (January 5), China Mobile officially returned to A-Shares and was listed on the Shanghai Stock Exchange. The opening price was 63 yuan / share, which once rose by more than 8%. As of the close, China Mobile closed at 57.88 yuan / share, up 0.52%.
After several rounds of game, the whole day turnover of the stock yesterday was 15.26 billion yuan, the trading volume was 2.554 million hands, the turnover rate was 54.29%, the total market value was 1234.1 billion yuan, and the net inflow of the main force in a single day was 4.327 billion yuan. Finally, China Mobile held the issue price.
The 21st Century Business Herald reporter noted that, based on the stock price of 57.58 yuan, today’s million hand large order is worth about 6 billion yuan. Who is the fund in strong protection?
It is reported that previously, in order to protect the stock price, China Mobile introduced the “green shoe mechanism”, that is, the “over allotment option”, which granted the option to the lead underwriter, who can over sell shares not exceeding 15% of the underwriting amount at the issue price.
In short, if there is a break within 30 natural days after the listing of new shares, the Underwriters can start the “green shoe mechanism” and use the over allotment stock to raise funds to buy shares to stabilize the stock price; If the share price rises sharply, the issuer can also issue 15% more shares to investors who have previously subscribed.
The introduction of “green shoe mechanism” can stabilize the stock price in the first month of IPO and prevent the stock price from ups and downs.
In order to protect the stock price, on the eve of the listing, China Mobile announced that the shareholders authorized the board of directors to repurchase no more than about 2047.5 million Hong Kong shares on the Hong Kong stock exchange, equivalent to no more than 10% of the issued Hong Kong shares on the day of the 2021 annual general meeting.
According to the issuance announcement, China Mobile plans to publicly issue no more than 845.7 million a shares. If it exercises the over allotment option, that is, the “green shoe mechanism”, it will over sell no more than 972.555 million shares.
From the perspective of the joint lead underwriter team of China Mobile, including the joint lead underwriters: China International Capital Corporation Limited(601995) , Citic Securities Company Limited(600030) ; And co lead underwriters: China Securities Co.Ltd(601066) , Huatai United Securities, Boc International (China) Co.Ltd(601696) , China Merchants Securities Co.Ltd(600999) , etc.
Previously, China Telecom Corporation Limited(601728) used the “green shoe mechanism” for listing, and the lead underwriter China International Capital Corporation Limited(601995) bought 6.255 billion yuan to protect the stock price from breaking in the first month of listing. However, two days after the expiration of the “green shoe mechanism”, China Telecom Corporation Limited(601728) finally broke.
In addition, the previous large-scale abandonment of investors also reflects that the market’s expectation of China Mobile is not clear.
On December 22, after China Mobile opened its subscription, according to the issuance results disclosed by the company, the total amount of abandonment by online and offline investors reached 756 million yuan, breaking the record of the highest amount of abandonment of a shares.
According to the issuance results disclosed by the company, the total amount of abandonment by online investors and offline investors reached 756 million yuan. It has set a new record for the maximum amount of A-Shares abandoned. The first signature on the main board of Shanghai Stock Exchange is 1000 shares, and all the unpaid subscription shares are underwritten by the joint lead underwriters.
In this context, the follow-up stock price trend of China Mobile remains to be observed. Insiders said that the big purchase of nearly 6 billion yuan may mean that China Mobile has officially launched the “green shoe mechanism”.
(21st Century Business Herald)
