On May 20, the CSRC issued the notice on giving further play to the function of the capital market to support the accelerated recovery and development of areas and industries seriously affected by the epidemic (hereinafter referred to as the notice), proposing to strengthen policy support in enterprises’ application for IPO, listing on the Beijing stock exchange, refinancing, M & A, corporate bonds, asset securitization products, etc.
Private placement is an important way to help the development of listed companies. Data show that since May, as of May 22, 45 A-share listed companies have issued plans for non-public offering of shares, and the total amount of funds to be raised exceeds 70 billion yuan. Among them, 15 listed companies plan to raise more than 1 billion yuan, and Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) , China Eastern Airlines plan to raise the largest amount of funds, both of which are 15 billion yuan.
Chen Duan, director of the digital economy integration and innovation development center of the Central University of Finance and economics, told the Securities Daily that the above notice is one of many relief and assistance policies, and it is expected that more incremental policy tools will be introduced in the future.
controlling shareholder’s participation in fixed increase
According to the reporter’s combing, among the above 45 listed companies that issued the fixed increase plan, the fixed increase objects of many companies are controlling shareholders, actual controllers and related enterprises.
For example, Shanying International Holdings Co.Ltd(600567) announced that it plans to issue shares to specific objects in a non-public manner, and the issuing object is Taixin industry (to be established), a wholly-owned subsidiary of Fujian Taisheng Industry Co., Ltd., the controlling shareholder Chengdu Huasun Technology Group Inc.Ltd(000790) announcement said that the issuing object of this non-public offering is Chengdu Yuanhong Biotechnology Co., Ltd., which is the controlling shareholder of Sichuan Huashen Group Co., Ltd.
In addition, the additional issuance plan issued by Hoshine Silicon Industry Co.Ltd(603260) shows that the subscription objects of this non-public offering Luo Yu and Luo Yedong are the shareholders and actual controllers of the company. At the same time, Luo Yu serves as the vice chairman of the company and Luo Yedong serves as the director and general manager of the company.
“The controlling shareholders of listed companies participate in the fixed increase mainly to provide working capital for listed companies. At the same time, it can also show their confidence in listed companies, play a leading role, release positive signals and reflect the strong financial strength of controlling shareholders.” Pan Helin, CO director and researcher of digital economy and financial innovation research center of International United Business School of Zhejiang University, told reporters.
According to Kuang Yuqing, founder of lens research, controlling shareholders’ participation in fixed growth is an important way to support the development of listed companies, which expresses their confidence in the development of listed companies.
mostly supplementary working capital
From the purpose of the raised funds of the above 45 companies, it mainly includes the acquisition of assets, project financing and supplementary working capital.
It is worth noting that more than 10 listed companies, including Zhejiang Qianjiang Motorcycle Co.Ltd(000913) , Shanying International Holdings Co.Ltd(600567) , Chengdu Huasun Technology Group Inc.Ltd(000790) , Geron Co.Ltd(002722) etc., said that the fixed increase raised funds were mainly used to supplement working capital, and only four listed companies did not involve supplementing working capital.
For example, on May 21, Zhejiang Qianjiang Motorcycle Co.Ltd(000913) released the fixed increase plan, which showed that the total amount of funds to be raised by the company was no more than 504.6 million yuan. After deducting the issuance expenses, the net amount of funds raised was all used to supplement working capital Hoshine Silicon Industry Co.Ltd(603260) said that the company plans to raise 7 billion yuan (including issuance expenses) through private placement, which will be used to supplement working capital after deducting issuance expenses.
“For listed companies, grasping this round of policy dividends, expanding their own volume and scale and improving their anti risk ability are also the needs to deal with changes in the situation.” Chen Duan told the reporter of Securities Daily that with the help of the credit platform advantages of listed companies and increasing the degree of constant growth, it is an important channel to quickly obtain liquidity funds in the short term to invest in emerging business sectors or carry out M & A integration to improve the position of the industry. At the same time, it can also optimize the asset liability structure of the company.
In Chen Duan’s opinion, the above notice is highly targeted and will have an obvious effect on boosting the confidence of the capital market in the short term. However, in the process of operation and implementation, it is necessary to strengthen the review of relevant materials to avoid the foam interference caused by the “admission with illness” of some projects with insufficient qualifications, which will affect the overall policy effect.
