In the past first quarter, the approval rate of IPO remained high, and the review speed increased significantly in March. Under the expectation of fully implementing the stock issuance registration system, the market-oriented reform of new share issuance was further accelerated, and the pricing efficiency, pricing mechanism and investment philosophy of the capital market showed new changes.
With the continuous improvement of the activity of the investment side of the capital market, the formation of a new ecology of investment and financing balance has accelerated China International Capital Corporation Limited(601995) CEO Huang Zhaohui said that on the basis of ensuring sufficient information disclosure, the listing queue time of enterprises was shortened and the issuance efficiency was improved.
ipo review speed increased
According to statistics, in the first quarter of 2022, a total of 121 A-share IPO companies were reviewed, 108 companies passed the review, 8 companies were rejected, and 3 companies suspended the review. In addition, two companies on the Shanghai main board withdrew materials before the meeting, and the IPO pass rate was about 90%, which remained high, higher than that in the same period of last year and the fourth quarter of last year.
In terms of sub sectors, the gem will review the largest number of enterprises, a total of 46, accounting for 38%. Among the rejected companies, there are 6 gem and 2 main board IPO companies. On a monthly basis, the passing rates from January to March were 97.05%, 88.46% and 89.65% respectively.
From the perspective of audit efficiency, the audit speed increased significantly in March, with a total of 60 IPO companies attending the meeting. Previously, 35 and 26 IPO companies attended the meeting due to the influence of the Spring Festival in January and February. With the approach of the comprehensive promotion of the registration system, the efficiency of IPO audit is also greatly improved.
Dong Dengxin, director of the Institute of Finance and securities of Wuhan University of science and technology, said that under the complex economic and financial situation, the issuance of new shares remained normalized, provided stable support for the real economy, stabilized market expectations and boosted enterprise confidence and investment and financing enthusiasm.
Statistics show that the top five IPO fund-raising in the first quarter were China Mobile, Jingke energy, Aojie technology, Tengyuan cobalt industry and softcom power. China Mobile topped the list with a fund-raising amount of 51.98 billion yuan, followed by Jingke energy and Aojie technology, which raised 10 billion yuan and 6.88 billion yuan respectively. With the improvement of multi-level capital market, the role of capital market in promoting the formation of science and innovation capital, promoting the rational pricing of innovation factors, optimizing the allocation of innovation resources and stimulating the vitality of innovation subjects is increasing day by day.
From the perspective of the proposed IPO companies, the issues concerned by the regulators mainly include gross profit margin, going concern and profitability, internal control system, compliance with the positioning of the listed sector, etc.
For example, the listing committee questioned whether the Asian fishing port is in line with the positioning of the gem, the authenticity of income, the perfection of internal control, capital exchanges, large cash withdrawals and other issues. Bolong technology was questioned by the development and Examination Commission whether there were problems such as the loss of collective assets, the identification of actual controllers, the accuracy of income recognition, and the provision for falling prices.
Dong Dengxin said that under the strict regulatory environment of new share issuance, the audit at the entrance end will be further strict. The effective play of the audit end inquiry mechanism can ensure the normalization of new share issuance and allow a number of high-quality enterprises to enter the capital market. By strengthening the supervision of listed companies and unblocking delisting channels, we can realize the effective cycle of capital market ecology.
IPO ecological reconstruction
The activity of the investment side of the capital market has been continuously improved, and the formation of a new ecological balance between investment and financing has accelerated.
According to the statistics of Deloitte China capital market service department, in the first quarter of this year, a total of 85 new shares were listed on the stock exchanges in Beijing, Shanghai and Shenzhen, raising 179.9 billion yuan. Compared with the same period last year, 100 new shares were listed in Shanghai and Shenzhen to raise 76.1 billion yuan. Although the number of new shares fell by 15%, the listing of China Mobile significantly increased the financing amount of the overall new share market by 136%.
Hu Ke, Deloitte China audit and assurance partner, analyzed that in the first quarter, the A-share new share market suffered the impact of some macroeconomic and geopolitical events, and the number of new shares decreased. However, in terms of financing amount, Shanghai Stock Exchange and Shenzhen Stock Exchange became the largest and third largest listing destinations in the world respectively.
Deloitte estimates that in 2022, 170 to 200 new shares on the science and Innovation Board may raise 210 billion to 250 billion yuan, 210 to 240 new shares on the GEM may raise 160 billion to 180 billion yuan, and 120 to 150 new shares on the main boards of Shanghai and Shenzhen are expected to raise 200 billion to 230 billion yuan. Small and medium-sized manufacturing, technology, medical and pharmaceutical enterprises will dominate the number of IPO.
With the continuous promotion of the comprehensive registration system reform, the ecology of new shares is also reshaping. After the expectation of “stable profit without loss” of new shares was broken, “break” has become the norm, and the speculation of new shares has ebbed to a certain extent. According to Hithink Royalflush Information Network Co.Ltd(300033) statistics, 21 new shares were broken on the first day of listing in the first quarter, accounting for 22%. As of the closing on March 31, of the 86 new shares listed during the year, 41 shares had broken, accounting for nearly half.
Chen Mengjie, chief strategist of YueKai Securities Research Institute, pointed out that with the acceleration of the issuance of registration system, after some new shares are listed when the profitability is not stable enough, they enjoy the dividends brought by the high valuation of track stocks in the industry, which makes the stock price overvalued to a certain extent. These stocks returned to rationality after listing, and the break was expected.
