After the disclosure of the brilliant performance express in 2021, the 28 billion allotment of “Yige” Citic Securities Company Limited(600030) was launched. This is less than two months after the approval of the CSRC on November 26 last year.
According to the announcement, after the closing of the Shanghai Stock Exchange as of the equity registration date (January 18, 2022), all A-share shareholders of the company registered in zhongdeng company will place A-share shares at the proportion of 1.5 shares per 10 shares, and the allotment price is 14.43 yuan / share. From January 19 to 26, the allotment payment period and online clearing day are Citic Securities Company Limited(600030) during which the trading is suspended all day.
Citic Securities Company Limited(600030) what are the highlights of this allotment?
First, the allotment was supported by the full cash subscription of the major shareholder – China CITIC Co., Ltd., with an estimated subscription amount of 4.4 billion.
Second, the price of this allotment is 14.43 yuan. According to the closing price of Citic Securities Company Limited(600030) 26.36 yuan on January 13, there will be a discount of about 45.26%. This discount price is also favored by non bank analysts as an attractive allotment price.
Third, the investment direction of fund-raising. After deducting the issuance expenses, the net amount of fund-raising is planned to invest no more than 19 billion for the development of capital intermediary business; No more than RMB 5 billion for increasing investment in subsidiaries; No more than 3 billion will be used to strengthen the construction of information system; No more than 1 billion yuan is used to supplement other working capital.
Fourth, the scale of share allotment. The 28 billion refinancing scale is the largest share allotment of listed securities companies in history.
Fifth, the equity registration time, Citic Securities Company Limited(600030) will determine January 18, 2022 as the equity registration date. From January 19 to 26, the allotment payment period and online clearing day are Citic Securities Company Limited(600030) during which the trading is suspended all day. This also means that there are three trading days for investors to grab power on January 14, 17 and 18..
In addition to Citic Securities Company Limited(600030) , since 2020, there have been 12 securities companies refinancing by share allotment (13 times in total), with a total amount of 115.552 billion yuan. After the implementation of Citic Securities Company Limited(600030) share allotment, there are three securities companies such as Orient Securities Company Limited(600958) , Caitong Securities Co.Ltd(601108) , China Industrial Securities Co.Ltd(601377) share allotment cases still in progress.
28 billion allotment supported by major shareholders
On January 13, Citic Securities Company Limited(600030) issued an announcement on the issuance of A-share allotment, which said that the A-share allotment was based on the total A-share capital of the company after the closing of the Shanghai Stock Exchange on January 18, 2022 (t day). It was allotted to all A-share shareholders at the proportion of 1.5 shares per 10 shares. The total number of A-share allotments was 1.597 billion shares, all of which were tradable shares with unlimited conditions.
The price of this allotment is 14.43 yuan / share. According to the closing price of Citic Securities Company Limited(600030) 26.36 yuan / share on January 13, there will be a discount of about 45.26%. If calculated according to the ex right price of the latest share price of 24.84 yuan, non participating investors may face a Book loss of about 6%.
In addition to the price, the fund-raising scale and investment direction of this allotment have also attracted extensive attention.
According to the announcement, the total amount of funds raised in this allotment does not exceed 28 billion yuan, which is also the largest allotment case of listed securities companies in history. Among them, the total amount of funds raised by A-share allotment shall not exceed RMB 23.065 billion, and the total amount of funds raised by H-share allotment shall not exceed RMB 4.935 billion.
Citic Securities Company Limited(600030) explain the specific investment direction of the funds raised by the allotment, of which no more than 19 billion yuan is planned to be invested to develop capital intermediary business; No more than 5 billion yuan for increasing investment in subsidiaries; No more than 3 billion yuan is used to strengthen the construction of information system; No more than 1 billion yuan is used to supplement other working capital.
It is noteworthy that Citic Securities Company Limited(600030) This large allotment has been supported by major shareholders. Citic Securities Company Limited(600030) said that China CITIC Co., Ltd., the largest shareholder of the company, has promised to fully subscribe for the distributable shares determined according to the company’s allotment plan in cash according to the number of shares held by the company after the closing of the market on the registration date of the allotment. The current shareholding ratio of China CITIC Co., Ltd. is 15.47%. According to this calculation, the subscription amount is about 4.4 billion yuan.
According to the time arrangement of allotment, the start and end dates of allotment payment are from January 19 to January 25, and January 26 is the online liquidation date of the registered company, Citic Securities Company Limited(600030) during which the trading is suspended all day.
In addition, according to the statement of allotment, the cumulative cash dividend of Citic Securities Company Limited(600030) in recent three years reached 15.875 billion yuan, and the amount of cash dividend (including tax) from 2018 to 2020 were 4.241 billion yuan, 6.463 billion yuan and 5.171 billion yuan respectively.
the performance growth in 2021 hit a five-year high
On January 12, the day before the announcement of the allotment issue, Citic Securities Company Limited(600030) took the lead in issuing the performance express.
According to the performance express, in 2021, Citic Securities Company Limited(600030) main performance indicators achieved year-on-year growth, of which the operating revenue was 76.57 billion yuan, a year-on-year increase of 40.8%; The net profit attributable to the parent company was 22.979 billion yuan, a year-on-year increase of 54.2%, the highest increase in revenue and net profit since 2016.
The continuous transfer of business structure to light capital business is an important trend of business development in Citic Securities Company Limited(600030) 2021. The weighted roe also rose to 12.01%, an increase of 3.58 percentage points year-on-year.
Citic Securities Company Limited(600030) in response, the Chinese economy overcame the impact of the epidemic, continued to improve, the capital market developed vigorously, and the company’s investment banking, asset management and other businesses developed in a balanced and steady manner in 2021.
It is worth mentioning that the competitive advantages of Citic Securities Company Limited(600030) wealth management and institutional business are continuously strengthening. China Merchants Securities Co.Ltd(600999) believes that the huge stock and significant increment of the non commodity fund and private equity fund market will drive the rapid growth of the performance of the company’s wealth management industrial chain (consignment, fund and transaction), and also derive huge business opportunities for institutional customer capital business (derivatives and institutional financing).
With the further replenishment of the placement capital, Guotai Junan Securities Co.Ltd(601211) believes that Citic Securities Company Limited(600030) institutional business will become an important driving force for performance growth.
Since 2020, securities companies have allotted more than 100 billion shares
Since 2020, there have been 12 refinancing cases in the form of share allotment for 13 times, with a significant increase over previous years. According to wind statistics, the total amount of share allotment fund-raising is 115.552 billion yuan.
In addition to Citic Securities Company Limited(600030) announced in the issuance announcement of allotment, 8 securities companies have launched allotment cases, including Sealand Securities Co.Ltd(000750) , Tianfeng Securities Co.Ltd(601162) , Soochow Securities Co.Ltd(601555) , Shanxi Securities Co.Ltd(002500) , China Merchants Securities Co.Ltd(600999) , Guoyuan Securities Company Limited(000728) , Huaan Securities Co.Ltd(600909) , Hongta Securities Co.Ltd(601236) , raising a total of 57.278 billion yuan, of which Soochow Securities Co.Ltd(601555) has implemented allotment twice in recent years.
Another three securities companies are on the way, including Orient Securities Company Limited(600958) , Caitong Securities Co.Ltd(601108) , China Industrial Securities Co.Ltd(601377) . According to the current proposed fund-raising amount, the total scale has reached 38.8 billion yuan.
From the perspective of purpose, most securities companies focus on the development of investment banking, two finance, self operation, information technology and risk control system construction. In addition, supplementary working capital, wealth management and capital increase to subsidiaries are also the main needs of securities companies for share allotment financing.
