Public offering, non-public offering (i.e. fixed increase), allotment of shares and issuance of convertible bonds are the main ways of refinancing of listed companies. Among them, due to the characteristics of simple procedure, low cost and easy to travel, dingzeng is favored by listed companies. However, now the fixed growth market is also the survival of the fittest, resulting in the phenomenon of “insufficient raising” showing a frequent trend.
fixed increase quantity and scale decreased
According to the data of China stock market news choice, based on the listing date of additional issuance, 91 listed companies have implemented directional additional issuance this year, with a total of 11.108 billion additional shares and a total amount of 137598 billion yuan.
In terms of amount, among the above 91 companies, there are 2 companies with fixed increase fund-raising of more than 10 billion yuan, 4 companies with fixed increase fund-raising of 5 billion yuan to 10 billion yuan, 29 companies with fixed increase fund-raising of 1 billion yuan to 5 billion yuan and 56 companies with fixed increase fund-raising of less than 1 billion yuan (including 32 companies with less than 500 million yuan). At present, Shanghai Pharmaceuticals Holding Co.Ltd(601607) ranks first with a fund-raising amount of 13.975 billion yuan, followed by Jiangsu Eastern Shenghong Co.Ltd(000301) and Guangxi Liugong Machinery Co.Ltd(000528) , with a fund-raising amount of 12.271 billion yuan and 7.428 billion yuan respectively.
In the same period last year, a total of 150 A-share companies implemented fixed increases, with a total fund-raising amount of 245147 billion yuan, including three fixed increases of 10 billion yuan, and the fund-raising amounts of these three cases were more than 15 billion yuan. It can be seen that the fixed growth rate this year is lower than that in the same period last year in terms of quantity and scale.
In this regard, CO director of digital economy and financial innovation research center of International United Business School of Zhejiang University Researcher pan Helin said in an interview with Securities Daily: “This year, capital prefers small, medium-sized and micro enterprises or growing enterprises, and the preference for large enterprises has declined. The key is that investors pay more attention to the growth of enterprises, which makes it more difficult for large enterprises with a certain scale to finance. At the same time, the financing channels of large enterprises are also expanding, such as preferred shares, convertible bonds, ABS bonds and corporate bonds. The channels are also more diversified, and the dependence on the liquidity of the stock market is also weakening.”
Liu Shengyu, managing partner of Gaohe investment, told the reporter of Securities Daily: “From the end of last year to this year, the heat of the fixed growth market has decreased to a certain extent. This is mainly due to the adjustment of the capital market. Some listed companies are facing difficulties in issuing fixed growth, and even the breaking of fixed growth. Based on this, this year’s fixed growth market may enter an adjustment period. On the whole, the scale of fixed growth may be the same as that of the previous two years, or even decline slightly.”
In terms of trend, the five Shenwan industries of medicine, biology, computer, electronics, mechanical equipment and automobile are becoming the main force of fixed growth projects. Since this year, 44 listed companies in the above five industries have implemented fixed growth, raising a total of 66.342 billion yuan.
“Computer, medicine, machinery, automobile and electronics are the key development fields in China. China’s digital economy is in the ascendant. Due to the covid-19 epidemic and volume procurement forcing innovation, biomedicine has also become an important direction of scientific and technological innovation in China. New energy vehicles and high-end manufacturing industries have been hot industries in recent years.” Pan Helin told reporters, “the booming business has prompted these enterprises to need external funds to expand their scale; and the good industry prospect has also attracted more and more capital to actively participate in the fixed growth of these enterprises.”
fixed growth market “survival of the fittest”
According to the data of China stock market news choice, among the above 91 companies, there were 22 fixed increase projects with “insufficient raising”, that is, the final actual raised funds were lower than the expected raised funds, accounting for 24.18%. Compared with the actual fund-raising amount and the proposed fund-raising amount of the company, the actual fund-raising proportion of the eight companies was less than 50%.
Among them, the largest difference between actual fund-raising and expected fund-raising is Shanghai Xuerong Biotechnology Co.Ltd(300511) . According to the previously disclosed fixed increase plan, Shanghai Xuerong Biotechnology Co.Ltd(300511) plans to raise 2.25 billion yuan, but the actual amount is not satisfactory. In March this year, Shanghai Xuerong Biotechnology Co.Ltd(300511) announced that as of March 4, 2022, the company had issued 656766 million ordinary shares (A shares) to 11 specific objects at an issue price of 6.06 yuan / share, raising a total of 398 million yuan, a decrease of more than 80% compared with the previous planned fund-raising amount.
Bai Wenxi, chief economist of IPG China, told the reporter of Securities Daily: “If there is nothing special about the company itself, there is no special bright spot in the raised investment project, the fixed increase lacks the support of cornerstone investors with sufficient strength, and the fixed increase conditions are not attractive enough, it is reasonable to have the phenomenon of” insufficient raising “of fixed increase. The” insufficient raising “will not only affect the implementation of the original plan, but also affect the market image of the company, which is very unfavorable to the subsequent financing and development.”
According to Zhang Xiaorong, President of the deep science and Technology Research Institute, there are three reasons for the decline of fixed growth: first, the time is not good. At present, the market fluctuates, the risk is high, the sense of capital insecurity is greatly increased, and the willingness to participate in fixed growth is relatively weakened; Second, fixed value-added projects have certain defects and are not attractive; Third, the fixed increase price may be controversial.
Liu Shengyu believes that institutional investors in the primary market pay more and more attention to the fundamentals of listed companies, and institutions pay more attention to the quality of projects rather than fixed increase prices. For promising listed companies, although the fixed increase price is relatively high, investors will also rush to enter the market. In addition, the implementation of fixed increase should be combined with the window period of the capital market. According to the current time cycle of fixed increase issuance, the validity period is one year. Assuming that the listed company has a better development plan, it needs to prepare in advance and then choose the opportunity to issue.
