Panlong convertible bonds are expected to become the brightest variety in the securities market on April 8.
data show that Panlong convertible bond is the most valuable variety before listing, which has reached 254.04 yuan. After the listing on April 8, it is expected to achieve the largest single day rise and fall of convertible bonds in Shenzhen market, and it is expected to hit the previous two-day rise record of new bonds
All this is mainly due to the recent sharp rise of positive stock Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) recently. In the past 15 trading days, Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) achieved 12 price limits, and the company’s share price rose sharply from 27 yuan to 67.55 yuan, an increase of 149%.
However, according to the trading rules of Shenzhen market, Panlong convertible bonds could not fully realize this increase on the first day of listing, and the highest increase on the first day of listing was 57.3%
Although Panlong convertible bonds will not leave too many opportunities for the secondary market, each investor still has three quotation windows – like a “blind box” game. If you are lucky, you will get unexpected surprises.
12 trading boards in weak market
On March 3, Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) launched the issuance of 276 million yuan of Panlong convertible bonds.
Panlong convertible bond is a typical “small and stable” variety of traditional Chinese medicine industry. The scale of the company is not large, and the financial data are relatively stable, but there are few high bright spots.
The issuer Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) is a modern high-tech enterprise with standardized cultivation of medicinal materials, drug production, R & D, sales and pharmaceutical logistics as its core industries. The company operates a wide range of drugs, focusing on rheumatism and bone injuries. The representative product “Panlong seven tablets” is the leading variety of the company. At the same time, the company’s products cover many treatment fields, such as liver and gallbladder, cardio cerebrovascular, gynecology, dermatology, pediatrics and so on.
The core product “Panlong Qipian” is a national exclusive and Medicare class a variety, which has been selected as a protected variety of traditional Chinese medicine. The product consists of 29 Chinese herbal medicines, among which 13 rare and genuine herbal medicines such as Panlongqi, zhuangjindan, guoshanlong and zhuzishen are unique natural and precious Chinese herbal medicines growing at an altitude of more than 1800 meters in Qinba mountain area. “Panlong Qipian” has strong market competitiveness in the field of Chinese patent medicine for rheumatic diseases of skeletal muscle system.
However, with the rapid rise of covid-19 prevention and control theme in this round, Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) has gradually been paid attention to by the market.
On March 16, the company replied to investors on the investor interaction platform that the company’s product “Qingwen hufei Granule” is a traditional Chinese medicine hospital preparation declared and approved by Shaanxi Academy of traditional Chinese medicine for the prevention and treatment of covid-19 pneumonia. The company has signed a strategic cooperation agreement with Shaanxi Academy of traditional Chinese medicine.
On March 17, the company announced that its “development of coronavirus 3CL protease inhibitor” project had been applied for the “second batch of key core technology industrialization” project in 2021 jointly issued by Shaanxi Provincial Department of industry and information technology and Department of finance.
Subsequently, Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) began to rise the limit continuously and made great progress all the way.
Although Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) fell by the limit on the 7th, it has reached the limit for 12 times in 15 trading days. The company’s share price rose sharply from 27 yuan to 67.55 yuan, an increase of 149%.
Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) ‘s popularity has weakened, but for another variety – Panlong convertible bond, it is entering a climax. On April 6, the company announced that Panlong convertible bonds would be officially listed on the 8th.
the best start in history
Panlong convertible bonds have the highest value of opening convertible bonds since the 21st century.
The issuance announcement shows that the initial conversion price of Panlong convertible bonds is 26.59 yuan / share. In the context of the sharp rise of Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) shares, its conversion value has soared from 100 yuan to 254.04 yuan in just one month
This means that its conversion value base point is 254.04 yuan on the first day of listing and trading of Panlong convertible bonds. Even if the value of the conversion of shares will continue to decline, the conversion of bonds will continue
Daxin family will significantly benefit from the Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) surge, but the biggest beneficiary is the old shareholders participating in the limited placement. According to the listing announcement, the priority placement of Panlong convertible bonds by the original shareholders accounted for 80.32% of the total issuance. All the top five shareholders of the company participated in the placement, of which Xie Xiaolin held 43.45% chips and France Industrial Bank Co.Ltd(601166) also held 14851 Panlong convertible bonds.
“blind box” game
only three quotation opportunities
If the discount premium rate is not considered, even on the premise of the limit of positive shares, the minimum of Panlong convertible bonds will be 228.6 yuan on the 8th.
Logically, Panlong convertible bonds will increase by 128.6%. However, in the Shenzhen market, the first day increase of convertible bonds was not achieved in one step. According to the rules, there will be only three prices on the first day of listing of such convertible bonds in Shenzhen market.
The opening call auction can reach 130 yuan. At this time, the temporary stop of intraday fusing will be triggered for 3 minutes. At 14:57, it will enter the trading stage, with a trading price of 143 yuan, and then enter the last three minute call auction stage. Convertible bonds with a conversion value of more than 200 yuan will only be traded at the limit price. The final transaction price was 157.3 yuan.
“The latest conversion value of Panlong convertible bonds is as high as 254.04 yuan. There is no suspense on the first day of listing. There are three prices of 130, 143 and 157.3 yuan.” Zhang Xiaodong, general manager of Guangzhou Siying private placement of well-known convertible bonds, said.
In the face of such huge profits, the buying opportunity in the secondary market is comparable to winning the lottery. Investors have and only have three time windows to bid. The first time is the opening bidding window. At this time, the price is often 130 yuan. The second window is the bidding at the end of the intraday suspension, which is 143 yuan. The last window is the last three minute call auction, which is 157.3 yuan without accident.
Zhang Xiaodong said that although there are three quotation opportunities, the probability that investors in the secondary market can buy is still very small, which is basically a chance. He judged that at present, the institutional fast track must grab the opening price of 130 yuan, and ordinary investors cannot have the opportunity. The latter two prices have a high relative probability. Even so, it needs to be entrusted at the first time.
As the value of Panlong’s debt to equity swap is higher than 200 yuan, there will be opportunities to rush to raise funds even on the second trading day of listing next Monday.
Cautious market participants also reminded that rush to raise funds is only a short-term transaction, which should be fast in and fast out, and long-term securities still need to filter market speculation generally speaking, the convertible bond will not have the opportunity of share conversion until 6 months after listing. Therefore, even if the value of share conversion is very high, there may be inconsistency between the market price and the value of share conversion, or even negative premium rate, and then there will be a certain market risk
“However, all risks must be based on the premise of being able to buy Panlong convertible bonds. The 8th is a time to test market skills. Like a blind box game, there will always be a chance of surprise.” Zhang Xiaodong said.
Panlong convertible bonds are expected to replicate the trend of Longhua convertible bonds on the first day of listing
