IPO slow down? Look at the data.
The emergence of new registered shares has aroused the attention of all parties in the market, and a more far-reaching impact is quietly coming.
According to the statistics of Chinese journalists from securities companies, the number of IPO registration approvals decreased significantly in April, and the number of new shares launched for issuance and underwriting also decreased significantly; The IPO situation in May has warmed up, or better than that in last month, but the activity is still far less than that in March.
Some industry insiders said that we should unswervingly adhere to the normalization of IPO issuance, hand over the control of the issuance rhythm to the market for self-regulation, and do not easily press the “pause button”.
the number of new shares issued and underwritten decreased sharply
Since this year, the listing performance of registered new shares has continued to decline, even breaking losses, and some online and offline new share subscribers have left one after another. According to the analyst of Kaiyuan securities, in April 2022, the average first day increase of the sci-tech innovation board and the gem further decreased to – 10.94% and 21.06%, and the registration sector lost new revenue for the first time.
The IPO IPO market is cold, and the issuance and underwriting link has slowed down spontaneously. According to the statistics of Chinese journalists from securities companies, only 8 registered IPO companies (excluding the IPO companies of the Beijing stock exchange) started the IPO in April, which is a big gap compared with 43 in March and even less than 15 in February with the Spring Festival holiday. It can be seen that the IPO underwriting in April was relatively depressed.
The fund-raising situation of the above eight IPOs is still ideal. Among them, the fund-raising of two science and Innovation Board enterprises did not meet the expectations, only 45% of the planned fund-raising was completed, and the other six completed the fund-raising goal or achieved over raising.
The time has entered may, and the pace of IPO issuance and underwriting has increased slightly compared with April. As of May 16, seven registered new shares have started offering in eight working days since this month, which is expected to be better than April. But on the whole, the number of registered new shares issued may still be less than that in March.
The decrease in the number of new shares in the issuance and underwriting process in the past month may be related to the adjustment of the time window after the intermediary institutions and issuers study and judge according to the market conditions. It is understood that in late April, the Shanghai Stock Exchange organized a number of securities companies to hold a symposium, and the heads of several securities companies promised to fully perform the duties of “gatekeeper” of the capital market. At the symposium, it was said that we should do a good job in the expectation management of issuers and shareholders, timely transmit the recent market situation, do a good job in the education of issuers, guide issuers to raise funds reasonably and carefully choose the issuance time window.
However, some investment bankers from securities companies told Chinese reporters that the customers he contacted would not change the timing of issuance. Bao Dai of a large securities firm in East China said, “the issuer will start the issuance work quickly after getting the approval and will not wait for the issuance window. In the situation I have learned so far, some underwriters have not waited because the issuer can’t wait.” He said that as long as there is no issuance failure in the market, the issuer’s issuance work will continue to advance.
An equity investor in Beijing also expressed a similar view. “We have more confidence in the investment company, so even if there is a break expectation, it will not change our issuance plan.”
A person from the capital market department of a large securities firm said that the Underwriters can only give suggestions on the issuance window. The final issuance time is determined by the issuer itself, but will clearly inform the impact of the issuance time choice on the issuance work.
Due to the overall slowdown in the pace of issuance and underwriting, there was a “gap period” in the recent listing of registered new shares. On May 17, Prius appeared on the gem and was officially listed, but it has been 8 working days since the last registration system IPO (Delong laser on April 29). Previously, new shares were listed almost every day except holidays.
ipo approvals decrease
From the audit side, the data show that the number of recent IPO approvals also decreased significantly compared with the first quarter.
According to the incomplete statistics of the Chinese reporter of the securities firm, only 15 new shares obtained the registration approval in April (the IPO of the Beijing stock exchange was not included in the statistics), which was 53% lower than that in March, and also less than that in February (18). Since May, as of the 16th, a total of 6 new shares have obtained the registration approval of the CSRC.
Some market views speculate that it is possible to adjust the rhythm of IPO approval to deal with the market. However, several industry insiders suggested that the IPO issuance should continue to be promoted step by step Orient Securities Company Limited(600958) chief economist Shao Yu once told reporters that we should adhere to the normalization of IPO issuance and slightly adjust the speed of IPO according to the situation of financial market, but we should not easily press the “pause” button, because it will affect the ecology of capital market. The uncertainty of IPO will feed back to the investment in the early stage, which is not conducive to enterprise financing and strategic layout, and disrupt the enterprise life cycle.
Another investment banker explained to the Chinese reporter of the securities firm that the decrease in the number of IPO issuance is also related to the supplementary data. Since April, IPO companies need to update the annual report and the financial data of the first quarter report. It is expected that the pace of audit has slowed down.
From the rhythm of the registration system new shares meeting, the data show that since this year, the gem and the science and innovation board have arranged a total of 40 IPO companies to attend the meeting in March, which is the largest month so far. The registration of new shares was only arranged in January and last April.
In May, the pace of the conference increased. As of the 16th, there were 21 registered new shares arranged for the conference. This means that the number of meetings beyond April is just around the corner.
