For nearly eight months, China Industrial Securities Co.Ltd(601377) allotment application was approved.
On April 18, China Industrial Securities Co.Ltd(601377) ( China Industrial Securities Co.Ltd(601377) , China Industrial Securities Co.Ltd(601377) ) announced that on that day, China Industrial Securities Co.Ltd(601377) share allotment application was approved by the 44th working meeting of the 18th issuance Review Committee of CSRC in 2022.
According to the stock allotment plan, China Industrial Securities Co.Ltd(601377) this public offering of securities is planned to be carried out by means of placing shares to the original shareholders, placing no more than 3 shares per 10 shares to all shareholders, and the total amount of raised funds is expected to be no more than 14 billion yuan (the specific scale depends on the market conditions at the time of issuance).
It is worth noting that China Industrial Securities Co.Ltd(601377) the proposed fund-raising scale exceeds the A-share allotment financing scale of China Merchants Securities Co.Ltd(600999) billion yuan in 2020, or will become the second largest allotment financing in the history of China’s securities industry.
China Industrial Securities Co.Ltd(601377) said that in order to enhance the competitiveness of the company in the industry and meet the needs of the current competitive development of the securities industry, China Industrial Securities Co.Ltd(601377) attached great importance to the work related to refinancing. The adoption of the application for share allotment will promote China Industrial Securities Co.Ltd(601377) capital strength to a new platform, enhance the company’s business competitiveness, enhance the ability of financial services to the real economy, and speed up the construction of a first-class securities finance group.
it took nearly eight months from the release of the plan to its approval
It has been nearly eight months since the issuance of the share allotment plan on August 24, 2021 and the approval of China Industrial Securities Co.Ltd(601377) share allotment.
On November 9, 2021, the CSRC issued feedback on the China Industrial Securities Co.Ltd(601377) share allotment project, and inquired about the number of shares allotted, the basis and condition of asset impairment provision.
On January 7, 2022, the CSRC issued the second feedback on the China Industrial Securities Co.Ltd(601377) share allotment project, and further inquired about the impairment loss of financial assets bought for resale and the reasons and rationality of the application for changing the audit institution of non-public offering in 2019.
On April 18, 2022, the issue of China Industrial Securities Co.Ltd(601377) allotment of shares and public offering of securities was approved and approved by the CSRC, and the meeting of the development and Examination Commission did not raise major questions about the matter.
fund raising is mainly used to develop three major businesses, half of which are invested in margin trading
According to the plan, China Industrial Securities Co.Ltd(601377) the funds raised this time are mainly used to develop three major businesses: margin trading, investment banking and investment trading.
Among them, China Industrial Securities Co.Ltd(601377) plans to use 50% of the funds raised from the allotment of shares for the development of margin trading. In this regard, China Industrial Securities Co.Ltd(601377) said that the margin trading business is a capital consuming business. Limited by the scale of net capital, the continuous growth of the business is facing a major bottleneck. It is urgent to supplement the net capital, open the space for business growth and ensure the continuous growth of the business scale.
In addition, China Industrial Securities Co.Ltd(601377) plans to use nearly one-third of the funds for the development of investment trading business, 12.86% of the funds for the development of investment banking business, and the remaining funds for increasing investment in information system and compliance sealing control.
China Industrial Securities Co.Ltd(601377) explained in the plan that the China Industrial Securities Co.Ltd(601377) investment trading business is still in its infancy due to factors such as insufficient capital strength and lack of innovation license such as primary dealer qualification. In addition, the project reserve of China Industrial Securities Co.Ltd(601377) investment bank, especially the acquisition capacity and investment support capacity of large projects, still need to be further improved.
As of the closing on April 18, China Industrial Securities Co.Ltd(601377) fell 3.54% to 7.35 yuan / share.
