Just Advancing To The 3 Billion Club, Wicknus Issued Convertible Bonds To Raise 746 Million Yuan.

Since last year, issuing convertible bonds has gradually become a new trend of financing for listed companies.

Vigna S, who has just announced that the company's revenue is among the 3 billion clubs, issued a fundraising notice on January 21st night, saying it would raise public offerings of convertible bonds by no more than 746 million yuan, and the day after tomorrow would be January 24th.

It is reported that the initial convertible bond price of convertible bonds issued by Vigna S is 14.96 yuan / share, and the net amount of the convertible bond is expected to be 725 million yuan.

According to the arrangement, the time limit for Vigna S's Switching Company bonds is from January 24, 2019 to January 23, 2025, when the Switching Company bond and the future A shares will be listed on the Shanghai stock exchange.

After deducting the cost of issuance, the proceeds will be used to pay for the acquisition of TeenieWeenie brand and related assets and business projects of the brand, intelligent manufacturing, intelligent retail and supply chain collaborative information platform and supplementary liquidity.

Among them, 461 million yuan will be used for TeenieWeenie brand projects, 155 million yuan will be used for intelligent information pformation, and 1.3 will be used to supplement liquidity.

Reporters noted that since last year, the issue of convertible bonds raising has gradually become a new trend of financing of listed companies.

In the first 9 months of last year, the number of listed companies through convertible bonds financing increased by 17 times compared with the same period last year.

From the point of view of the purpose of raising funds, convertible bonds can be used to expand the main business.

Take Vigna S as an example, more than 60% of the 746 million yuan will be used for TeenieWeenie brand projects.

In recent years, TeenieWeenie has become the main force to support the continued high growth of Vigna S's performance, and helped them to join the 2 billion yuan revenue club in 2018 and the 3 billion yuan revenue club in 2017 and 2018.

In fact, after listing in 2015, the V.GRASS of the same name, the main brand, was not ideal. When the company's revenues and net profits were double, the first negative growth occurred.

In order to find a new growth point, Vigna S focused on acquisitions, and bought the high-end brand of women's clothing "Yun Brocade" and the Korean brand TeenieWeenie E.LAND brand in 2015 and 2016.

Among them, TeenieWeenie has entered the Chinese market for more than ten years. Before the acquisition, it was already the main force of income generation of the attachment group.

In order to acquire TeenieWeenie, wicknesse was desperate to spend 5 billion 700 million yuan, but also because it was considered a "snake swallow" acquisition by the industry.

Fortunately, the TeenieWeenie performance after the acquisition is indeed not disappointing.

In 2017, after the TeenieWeenie performance was incorporated into the report, the company's revenue reached 2 billion 564 million yuan, an increase of 244.50% over the same period last year, and its net profit almost doubled to 189 million yuan.

In 2018, Wien Nash predicted revenue of 3 billion 82 million yuan, net profit of 274 million yuan, both to achieve two digit high growth, including TeenieWeenie revenue grew 25.45% over the same period last year, operating profit increased by 66 million 300 thousand yuan.

According to the 2018 semi annual report, the company's total revenue is 1 billion 377 million yuan, TeenieWeenie has contributed 944 million yuan performance ratio, and the TeenieWeenie revenue in 2018 is expected to exceed 1 billion 500 million yuan.

However, Vigna S's financial costs have also soared since 2018.

According to the three quarterly report in 2018, in the first nine months of last year, the cost of financial services was 175 million yuan, an increase of 20% over the same period last year.

Market analysis believes that with the future of the convertible bond, Wenger's financial pressure is expected to be further eased to promote the company's main business development.

Compared with other financing methods, convertible bonds are actually a kind of corporate bonds, and holders have the right to convert them into a fixed number of common stock issuing companies within a prescribed time limit according to a certain proportion and corresponding conditions.

Convertible bonds have dual attributes, that is, bonds and options. First, it is a kind of bond with a series of factors such as face value, interest rate, time limit and so on. Under certain conditions, it can be converted into common stock issuing companies.

In recent years, due to the financial leveraging and fixed increase tightening, more and more listed companies choose to issue convertible bonds on the financing channels.

Since convertible bonds have the characteristics of bonds and stocks, they are more attractive to investors. Therefore, the relatively low interest rate can effectively reduce the financing cost of issuers.

It is reported that the interest rate of convertible bonds is generally lower than that of bank deposits and ordinary corporate bonds.

Data show that, in the case of issuing 1 billion yuan convertible bonds, the interest payment per year is about about 25000000 yuan less than that of issuing bonds, which is nearly 47 million yuan less than bank loans.

Some analysts believe that the current non-public offering audit is strict, and after the meeting, the approval time is as long as 3-6 months, the issuing time is not controllable, and the convertible bonds can go through the green channel.

Therefore, convertible bonds are considered to be the new trend of financing of Listed Companies in the future when the fixed financing policy is tightened.

Before the big market comes, the amount of convertible bond financing is relatively large.

When the timing of equity financing is poor, issuing convertible bonds can avoid further lowering the market price of the company's stock. At the same time, the convertible bonds can be changed for a long time, and the adverse effects on the company's share price will not be as obvious or intense as the issuance of new shares or the issue of shares.

However, these people also point out that convertible bonds are also a double-edged sword. On the one hand, they can raise funds at a lower cost for listed companies. On the other hand, if a listed company does not have the intention to buy back bonds, it will dilute earnings per share after converting bonds into shares, and if earnings fail to grow continuously, earnings per share will decline.

Although the terms of convertible bonds are numerous, the most important factors affecting their investment value judgments are interest rate clauses, conversion price, redemption provisions and resale provisions.

Reporters also noted that since last year, Hai Lan home, good bird, Taiping bird, Semir costumes, Pathfinder, and song and so on more than 20 clothing listed companies to buy back their own shares, of which Hai Lan House said it would continue to buy shares for five years, and plans to use last year's 20% to 30% net profit to buy back.

At the end of last year, three ministries and commissions jointly issued the opinions on supporting the repurchase shares of listed companies. The source of the original repurchase funds has been further expanded, including supporting the listed companies to raise funds for the repurchase of shares of the company through issuing preferred shares and bonds, etc. the convertible bonds belong to the category of bonds and are listed in the list.

Reporter access found that at the end of November last year, the listed company tengbang international has issued the first issue of A shares convertible bonds repurchase shares.