On March 18, the latest list of companies applying for termination of IPO review disclosed by the CSRC showed that the IPO of Wanlian securities was terminated on March 16.
The reporter of “daily economic news” learned from relevant persons of Wanlian securities that Wanlian securities decided to withdraw the application for A-share issuance after careful consideration and full study with relevant intermediaries of the issuance application in view of the adjustment of strategic planning. The company will restart the A-share issuance application according to the actual situation.
In recent years, the IPO team of securities companies has been expanding. This year, Caixin securities, Shengang securities and Donghai securities signed a listing guidance agreement. However, similar to Wanlian securities, many securities companies have a rough road to IPO. For example, Debang securities has terminated IPO related counseling, and Dongguan securities also took seven years to pass the IPO this year.
company’s capital strength increased significantly
The reporter learned from relevant persons of Wanlian securities that at present, the business of Wanlian securities operates well, and the withdrawal of IPO application will not have an adverse impact on the company’s financial status or normal operation.
Public information shows that Wanlian securities is a wholly-owned state-owned securities company in Guangzhou. It was established with the approval of China Securities Regulatory Commission on August 23, 2001, with a registered capital of 5.954 billion yuan. In recent years, with the strong support of Guangzhou municipal government and shareholder units, the company’s capital strength has increased significantly and its business scale has continued to expand.
From 2018 to 2020, the operating revenue of Wanlian securities was 1.109 billion yuan, 1.344 billion yuan and 1.705 billion yuan respectively; The net profit was 254 million yuan, 411 million yuan and 608 million yuan respectively. In the first half of 2021, the operating revenue was RMB 1 billion and the net profit was RMB 337 million, with a year-on-year increase of 21.72% and 12.07% respectively.
In addition, the reporter learned that on March 11 this year, “knowledge city (Guangzhou) Investment Group Co., Ltd., the sole underwriter and trustee of Wanlian securities, successfully issued carbon neutral green corporate bonds (phase I) to professional investors in 2022 in Shenzhen Stock Exchange, with a scale of 500 million yuan, a term of 3 + 2 years, a credit rating of AAA and a coupon rate of 3.09%, setting a new low in the interest rate of carbon neutral corporate bonds in the same period in China. This bond is the first carbon neutral green corporate bond in Guangzhou, which is highly recognized by investors, with a subscription multiple of 3.78 times.
The reporter of the daily economic news found that Wanlian securities received IPO guidance in June 2018, pre disclosed the prospectus in July 2019, and received nearly 10000 words of feedback from the CSRC in April 2020. It mainly raised more than 30 questions on the standardization, information disclosure and financial and accounting materials of Wanlian securities.
securities companies’ IPO team continues to expand
With the establishment of the regulatory system with net capital as the core and the development of capital intermediary business, the scale of net capital has become an important factor restricting the competitiveness of securities companies.
In recent years, securities companies have listed together to supplement their net capital. In 2019, Hongta Securities Co.Ltd(601236) , Chinalin Securities Co.Ltd(002945) 2 securities companies were listed. Since 2020, Xiangcai securities and Yingda securities have been “listed curvilinearly” through mergers and acquisitions, and BOCI, Zhongtai Securities Co.Ltd(600918) , Guolian Securities Co.Ltd(601456) , China International Capital Corporation Limited(601995) have achieved A-share listing. In 2021 Caida Securities Co.Ltd(600906) completed A-share listing.
In addition, Cinda securities, capital securities and Bohai Securities have been in pre disclosure or pre disclosure update status. Hualong securities, Guokai securities, Huajin securities, Huabao securities, Caixin securities, Shengang securities and Donghai securities are in the status of guidance filing and registration, especially the last three, which are all securities companies that announced to accept IPO listing guidance this year.
Of course, in the process of listing, there are also bumpy securities companies. For example, in July last year, deppon securities announced that Haitong Securities Company Limited(600837) signed the guidance agreement on stock issuance and listing with deppon securities in April 2017, becoming the guidance institution for the initial public offering and listing of deppon securities, and submitted the application materials on the guidance filing of deppon securities to Shanghai Securities Regulatory Bureau in April 2017. Since Debang securities decided to terminate the original plan of stock issuance and listing, through friendly negotiation between Debang securities and Haitong Securities Company Limited(600837) Haitong Securities Company Limited(600837) , both parties agreed to terminate the guidance on Debang securities’s initial public offering and listing, and signed the termination agreement Haitong Securities Company Limited(600837) no longer serves as the guidance agency of Debang securities, and terminates the relevant guidance work.
Similarly, Dongguan securities, which was approved at the initial meeting on February 24 this year, also took seven years to realize its dream. It once suspended its IPO due to the impact of the bribery case of major shareholders, but fortunately, it finally came to fruition.
