On April 7, Huaxia China Communications Construction Company Limited(601800) reit, the first public offering REITs of this year, was officially put on sale to the public.
The reporter learned from the fund sales channel that as of 11:30 a.m. on April 7, the new products had been on sale for only two hours, and the subscription scale of public investors had exceeded 20 billion yuan. According to the sale price of 9399 yuan / share of the fund, it is expected that the total share of public subscription alone has exceeded 2.1 billion copies. According to the predetermined scale of 75 million copies and 705 million yuan issued to the public, the allotment proportion of public investors is about 3.5%.
As the fund is still in hot issuance, the subscription scale of the new fund is expected to rise. The fund is expected to reach the upper limit of the raising scale of 9.399 billion yuan, becoming the largest public offering REITs product in the market.
less than half a day, sold more than 20 billion
first public offering REITs popular public subscription
After full preheating in the early stage, the first public offering REITs in 2022 was officially sold to public investors today, and was sought after by funds at the beginning of the issuance.
The reporter learned from sources that Huaxia China Communications Construction Company Limited(601800) reit was officially launched for sale to the public today, and the issuance was only one hour. At about 10:30 a.m., the subscription scale of the new fund has exceeded 10 billion yuan. According to the requirements of the raising scale of 75 million copies (9399 million yuan / copy) and 705 million yuan of the new fund to the public, the proportion of the public investors has become a foregone conclusion.
At 11:30 a.m., the subscription scale of the new fund once again crossed the 20 billion yuan mark, and the public was allocated about 3.5%.
The strategic placement and offline sale of the new fund are also facing the situation of “more monks and less meat”. The offline sale will be paid and subscribed on the fund issuance day. According to the total issuance amount of 1 billion shares of the new fund and the offering price of 9399 yuan / share, the fund will probably reach the establishment scale of 9.399 billion yuan, becoming the largest public offering REITs product in China.
In fact, on the eve of the offering of Huaxia China Communications Construction Company Limited(601800) REIT, Huaxia Fund announced on April 6 that Sinolink Securities Co.Ltd(600109) , Changjiang Securities Company Limited(000783) , Shanghai Pudong Development Bank Co.Ltd(600000) and other institutions were added as the over-the-counter sale agents. From April 7, public investors can handle the over-the-counter subscription business of the fund in the seven new sales institutions.
It is reported that Huaxia China Communications Construction Company Limited(601800) reit is mainly sold in three ways: strategic placement, offline sale and public sale. The total fund units raised by the fund are 1 billion.
Among them, the initial strategic placement share is 750 million, the initial offline share is 175 million, the initial public share is 75 million, and the subscription price is 9399 yuan / share. The offering period is from April 7 to April 8, 2022. In case of proportional placement for offline offering and public offering, the whole process proportional placement principle shall be followed.
In the announcement on the sale of Huaxia China Communications Construction Company Limited(601800) reit shares publicized on March 31, the strategic placement of the fund was publicized. The total strategic placement share of the fund was 750 million, accounting for 75% of the total sale share of the fund.
Among them, the original equity holders CCCC Investment Co., Ltd., CCCC Second Navigation Engineering Bureau Co., Ltd. and CCCC Second Highway Survey, design and Research Institute Co., Ltd. (or related parties under the same control) subscribed 200 million copies, accounting for 20% of the total sale shares, and the sales restriction period is 60 months; Other strategic investors subscribed 550 million copies, accounting for 55% of the total number of shares offered. These strategic investors include Shenwan Hongyuan Group Co.Ltd(000166) securities, Citic Securities Company Limited(600030) and other securities firms, China Life Insurance Company Limited(601628) insurance and other insurance institutions, as well as securities firm asset management plans, public fund-raising fund management plans, fund subsidiary asset management plans, private equity funds, etc. the sales restriction period is 12 months, and the list and subscription number of strategic investors of the fund have been published.
In the offline inquiry, the number of offline investors submitting valid quotations this time, the number of managed placing objects is 149, and the total number of effective shares to be subscribed is 665 million. With reference to 175 million shares to be sold offline, the popularity of offline inquiry and the proportion of shares to be subscribed for may be less than 20%.
The subscription of public investors will be handled from 9:30-11:30 and 13:00-15:00 from April 7 to April 8. The handling channels include direct selling institutions, China Merchants Bank Co.Ltd(600036) , China Citic Bank Corporation Limited(601998) and other off-site sales agencies.
average placement ratio is only 5.5%
is still in “short supply” state
Due to the low proportion of public offering and allotment of its shares to the public, investors generally subscribe for it under the public offering strategy.
According to the data, as of April 7, of the 11 public offering REITs products that have been established, the average subscription and placement proportion of public investors is only 5.5%, and the placement proportion of CCB Beijing Centergate Technologies (Holding) Co.Ltd(000931) Industrial Park REIT and AVIC Shougang biomass REIT is less than 2%, both of which are popular with public investors.
Industry insiders said that based on past experience, the public offering REITs for public sale are popular and the proportion of placement is low. At present, Huaxia China Communications Construction Company Limited(601800) reit has sold 20 billion yuan in two hours, and the proportion of placement is expected to be at a low level.
Many investment researchers also said that the public REITs products sold in recent two years are generally sought after by funds, which is closely related to the overall small scale of such products, less product supply and stable income characteristics in the current fluctuations of the stock and bond market.
A public offering institution in Shanghai said that as a new variety in the Chinese market, public offering REITs not only attracted market attention, but also reflected a certain scarcity, which may lead to the phenomenon of fund pursuit. The agency suggests that we can increase product supply and expand market capacity. At the same time, we should continue to strengthen investor education and publicity of the basic knowledge of public REITs, so as to promote investors to have a more comprehensive understanding of the operation mode, internal value and risk return characteristics of REITs products, so as to facilitate investors’ rational decision-making.
The investment department of a public offering REITs in Beijing also said that since China’s public offering REITs is still in the early stage of industry development and the overall scale is small, such products are more likely to be sought after by funds in the case of “more money and less goods” and the lack of profit-making effect of the stock market. The investment department also suggested to increase the supply of publicly raised REITs products and increase the market scale. With the continuous enrichment of investable objects, the “supply exceeds demand” of such products and the phenomenon of high premium in the secondary market will gradually return to rationality.
