The amount of abandonment is 780 million yuan! With the halo of “super fund-raising king” in the year, the chip stocks of scientific innovation board appeared a rare scene in the history of a shares.
On the evening of April 17, Nexium micro (688052. SH) disclosed the issuance results. The number of shares abandoned by online investors reached 3.38 million, accounting for 38.76% of the number of shares issued online and 13.38% of the total amount of this issuance. The amount of shares abandoned reached a staggering 780 million yuan. According to the underwriting rules, the number of shares abandoned was underwritten by the lead underwriter Everbright Securities Company Limited(601788) in full.
For Everbright Securities Company Limited(601788) , in addition to taking 780 million yuan of abandoned purchase balance, it will also take out 100 million yuan for strategic follow-up investment, and the shares will be locked for two years. In other words, Everbright Securities Company Limited(601788) only took out 880 million yuan on this new share. The P / E ratio of NSM’s issuance is as high as 107.48 times, while the PE of the industry is only 50.67 times. If it breaks, Everbright Securities Company Limited(601788) may face huge floating losses.
On the evening of April 18, China National Offshore Oil Co., Ltd. (hereinafter referred to as “CNOOC”), as the largest IPO of A-Shares this year, also suffered from the abandonment of online and offline purchases, with an amount of about 243 million yuan.
Nasion micro and CNOOC are only representative cases of the recent IPO market. Breaking and abandoning purchases have become the new normal in the capital market.
As of April 18, a total of 99 new shares have been listed in 2022, of which 57 have fallen below the issuance price, with a breaking ratio of 57.6%.
For retail investors, the stock break also means a loss, which affects investment confidence and subsequent investment behavior. As of April 18, the average abandonment proportion of issued shares to be listed was 8.93%, which is significantly higher than that of previously listed companies.
broken hair can also be “infectious”
In fact, there was a burst tide at the end of October 2021. In the eight trading days from October 22 to November 2, 19 new shares on the science and innovation board and gem were listed and traded, including 4 from the science and innovation board and 5 from the gem. A total of 9 shares broke on the first day of listing, with a breaking rate of 47.37%.
Since this year, the proportion of broken hair has further increased. According to the data, a total of 99 new shares were listed in the three exchanges of Beijing, Shanghai and Shenzhen this year. As of the closing on April 18, 57 of them had fallen below the issuance price, and the breaking ratio reached 57.6%. There were 26 stocks that broke on the first day of listing, all of which were stocks on the science and innovation board and the gem.
As of April 18, a total of 33 new shares were listed on the science and innovation board in 2022, of which 25 had broken, while 42 new shares were listed on the gem, of which 23 fell below the issue price.
“Part of the reason is emotional influence. Breaking hair can be contagious, and abandoning purchase can also be contagious.” Wang Jiyue, the former sponsor of Huatai united, said that the overall quotation is normal. This period is mainly due to the bad market. The overall market is down in the whole first quarter, and the stability of the overall market will be improved.
The relevant person in charge of Sinolink Securities Co.Ltd(600109) investment bank told the interface news reporter that the inquiry mechanism for new shares was adjusted and improved in September last year (for details: the CSRC revised the pricing rules of the gem and cancelled the upper limit of the issuance price range). The fully market-oriented inquiry mechanism is bound to lead investors to fall into the dynamic game of high price Bo shortlisting and breaking losses after listing. This dynamic game will bring certain periodic fluctuations. When the new profits are rich, Investors choose to enter the high price blog to push up the issue price and reduce the new income. When the new income is reduced or even lost, investors reduce the quotation and push up the new income again.
\u3000\u3000 “This phenomenon is more obvious in the stage when investors pay more attention to new short-term earnings. In some mature overseas capital markets, the inquiry and pricing of new shares will also have similar cyclical fluctuations. At present, the IPO inquiry of the registration system is in the stage of high price entry and compression of new earnings. In addition, since this year, factors such as changes in the external environment and repeated epidemics have led to large market fluctuations, and many new shares have broken under multiple influences.” The official said.
Dong Dengxin, director of the Institute of Finance and securities of Wuhan University of science and technology, said that the uncertainty of IPO pricing is the marketization brought by the reform of registration system, which makes IPO pricing fluctuate between optimism and pessimism. One result of the reform of the registration system is the normalization of the breaking of new shares on the first day of listing, which also makes it more difficult for investors to make innovations. In the past, the era of invincible new shares, fighting every new and making every new has ended. In the past, it was blind, crazy and crazy speculation. Now it is difficult to continue.
The sponsor’s follow-up investment is a unique system of the science and innovation board, which requires the sponsor to follow-up investment with its own funds for the recommended listed projects. On the one hand, it can compact the responsibility of the sponsor. On the other hand, the model of sponsor + investment also allows the broker to obtain a certain income space, but the break also allows the broker to bear a large floating loss.
As of April 18, Haitong Securities Company Limited(600837) its direct investment subsidiaries have received a total of 9 strategic follow-up investments on the science and innovation board in 2022, with a cumulative allocation amount of 645 million yuan. At present, the floating loss has reached 148 million yuan.
There are also many leading securities companies with negative returns from follow-up investment on the science and innovation board in 2022. During the year, China International Capital Corporation Limited(601995) , Citic Securities Company Limited(600030) , Guotai Junan Securities Co.Ltd(601211) , Huatai Securities Co.Ltd(601688) and Huatai Securities Co.Ltd(601688) invested in 6, 5, 4 and 4 listed companies on the science and innovation board respectively, with the latest floating losses of 53.69 million yuan, 19.86 million yuan, 53.31 million yuan and 24.76 million yuan. At present, only China Securities Co.Ltd(601066) the strategy and insurance hold positive income, with a floating profit of about 258 million yuan.
However, it should be pointed out that the shares invested by securities companies need to be locked for 24 months, and the final profit and loss also depends on the operation of listed companies and long-term investment value.
Sinolink Securities Co.Ltd(600109) investment bankers said that although the recent IPO break was formed under the influence of many factors, securities companies should still strengthen their pricing and underwriting ability, carefully examine the reasons for the current situation, and how to stabilize the pricing of IPO new shares, prudently price and protect the interests of investors through their professional pricing and underwriting ability in case of market fluctuations, It is the subject that all securities companies need to study in depth and the direction of vigorous development.
why did the proportion of abandoned purchases increase significantly
Before NSM, China Mobile and Postal Savings Bank Of China Co.Ltd(601658) ‘s repurchasing amount reached 760 million yuan and 650 million yuan. However, due to the large number of shares issued by them, the actual underwriting proportion of the lead underwriters was only 1.45% and 2% respectively, and the repurchasing amount and underwriting proportion of NSM reached a record high.
Recently, the proportion of abandonment of new shares has increased significantly.
According to the statistics of the interface news reporter, 19 stocks have been issued for listing as of April 18. In addition to the giant CNOOC, there are five companies to be listed whose individual investors have abandoned more than 1 million shares, namely, NSM, Jingwei Hengrun, Zhongyi technology, Fengyi technology and saiweidian. The number of shares abandoned are 3380000 shares, 3260000 shares, 1990000 shares, 1830000 shares and 1.66 million shares respectively, The proportion of shares repurchased in the number of online issuance was 38.76%, 33.73%, 28.74%, 22.57% and 21.8% respectively.
In the last three months, the average abandonment ratio of listed shares was 2.05%, and as of April 18, the average abandonment ratio of issued shares to be listed was 8.93%.
For the reasons for abandoning the purchase, many market participants believe that the main reason is that the price of new shares is high and there are many breaks. In addition, the current market sentiment is relatively low, which leads investors to give up payment after winning the lottery.
As of April 18, 36 Sci-tech Innovation Board companies had completed the offering during the year, with an average p / E ratio of 88.77 times, while the industry average p / E ratio was only 40.89 times. During the year, the average p / E ratio of 43 gem new shares was 52.69 times and the industry average P / E ratio was 37.65 times.
According to the data, from March to April this year, five companies, including Shouyao holding-u, Geling shentong-u, Weijie chuangxin-u, Haichuang pharmaceutical-u and Puyuan jingdian-u, have landed on the science and innovation board. These companies have not made a profit before listing, and investors choose to abandon their purchases because of concerns about the company’s future profitability.
An employee told the interface news reporter that a large number of individual investors participated in the innovation, and “no difference” innovation. They carried out “one click innovation” or automatic innovation through various software and methods, ignoring the research and selection of stocks and the judgment of subscription price. The real thinking of investors is when they win the lottery and need to pay, which led some investors to give up their subscription in the payment stage, Raised the abandonment rate of IPO.
Individual investors are less interested in new shares, and the interest of institutional investors is gradually decreasing.
According to statistics, IPO offline subscription inquiry objects are also decreasing. Taking the science and innovation board as an example, the average number of offline subscription inquiry objects participating in the science and Innovation Board was 370 in 2021 and 278 in the first four months of 2022, indicating that institutional investors’ enthusiasm and motivation for IPO innovation are gradually declining.
A public fund manager said that there was a problem of high quotation in the issuance of new shares, so it broke as soon as it was listed, and a large number of investors abandoned the purchase. “This is also a means of marketization, that is, when the price of new shares is relatively high, the enthusiasm ratio of investors to participate is low, which may affect the issuance price of new shares in the next step, and the issuance at high price will be reduced.”
A private placement source told the interface news reporter that after the implementation of the new inquiry regulations, the issuance valuation of some listed companies increased, which to some extent compressed the new profit space and thickened the valuation space of listed companies, “In fact, playing new is always a dynamic balance of interests. In essence, it is a question of how to cut the cake. Cut more points to play new investors or cut more points to listed companies. There is no right or wrong, just how to distribute the interests.”
“Whether it is regulatory orientation or investor expectation, the new profit space is compressed and the new yield is reduced. With this expectation, the expectation has the function of self realization. The more this expectation is, the stronger the result is. Finally, the overall profit space is gone. This can not say that the market is worse than before, or everyone’s enthusiasm is low. The essential reason is the problem of cake cutting method.” Private equity sources said.
For the part that individual investors give up subscription, according to the existing rules, the lead underwriter shall underwrite in full. As of April 18, the lead underwriter had subscribed for 57.25 million shares abandoned by investors, with an underwriting amount of 3.06 billion yuan. The top five in the underwriting amount were nasion micro, n Jingwei, Zhongyi technology, CNOOC and Fengyi technology. The lead underwriter underwritten 780 million yuan, 390 million yuan, 320 million yuan, 240 million yuan and 140 million yuan respectively.
Will high abandonment of purchases put pressure on securities companies The relevant person in charge of Sinolink Securities Co.Ltd(600109) investment bank said that the abandonment of higher investors will indeed bring greater financial pressure to securities companies, but it is only a phased phenomenon. From the perspective of the new share subscription system, online new investors should conduct value research and judgment before participating in online subscription, rather than making decisions only in the payment period. At present, due to the new low winning rate, the post decision situation of investors needs to be adjusted for a period of time.
\u3000\u3000 “Based on the current situation, the increase of IPO abandonment rate not only allows the securities companies to face the pressure directly, but also requires the securities companies to focus on exploring the real reasons behind it. The most fundamental thing is to strictly control the quality control port and recommend high-quality companies with excellent quality and qualified business to be listed; secondly, the securities companies should keep enough research and prudence in the pricing of new shares. Although the pricing of new shares is generated in the process of inquiry by market investors, but ultimately The pricing is still completed under the joint negotiation of the issuer and the lead underwriter; Finally, in addition to investment banking, securities companies should also pay enough attention to how to do a good job in investor education and strengthen investor service in brokerage business, and how to combine Investor Service with the requirements of investor education concept under the registration system. ” The official said.
Wang Jiyue said that financial institutions have strong financial strength, and the abandonment of purchase has little impact on securities companies. “NSM and Everbright Securities Company Limited(601788) are just a matter of luck in the current market sentiment. Who knows whether it is a blessing or a curse. If it rises by 20%, it will earn 100 million more. In fact, NSM is good. Its offering price is 10% lower than the ‘lower limit of the 4-digit range’, and it may earn a sum like Hemai.”
