"New Shares Undefeated" Institutional Quotations Converge, Science And Technology Board Issuance Pricing "Anchor" Report To Be Solved

In mid October, the science and technology board ushered in a small upsurge in the audit and issuance. The SFC completed the registration of 12 enterprises in two batches. After registration, these enterprises will soon face the test of market pricing.

As we all know, the innovation of IPO pricing system is an important point in the experiment of the science and innovation board system. It has cancelled the guidance of issuing price and price earnings ratio, paid attention to the results of market inquiry and pricing, and hoped that the market could fully play the game to better discover the value of enterprises, and investment institutions could be guided by value investment.

However, since the opening of the market, the marketing issue of the science and technology board has been challenged. The investment institutions have been tempted by the increase in the share price after the listing of the company. In the bidding process, they have paid more attention to the effective offer rather than the reasonable pricing. The fluctuation of the upper limit of the effective quotation under the net inquiry has further narrowed and is more dependent on the investment value report issued by the investment bank.

"Issue pricing is one of the core of the" Chuang Chuang "plate system experiment. Unlike other market segments, the value discovery function and the support for science and technology enterprises are derived from the pricing of the market. With the increase of the number of enterprises and the appearance of breakage, the regulatory level will be further standardized and guided to solve the problem of the current pricing level. A head of the investment brokerage business of a medium-sized brokerage firm in Beijing said.

In mid October, the science and technology board ushered in a small climax of audit and issuance. - Song Wenhui diagram

Pricing VS finalists

As of October 16th, 34 science and Technology Board companies completed the issuance work, and 25 of them were listed on the first list in July 22nd. The remaining 9 enterprises were listed in 8, 9 and October respectively.

The research team found that, from the enquiry situation under the network, the upper and lower limits of the effective quotations on the 9 batches of the enterprises on the batches have narrowed sharply. The difference between the upper limit and the lower limit of the effective quoted price is only 0.14%-1.3%, and the upper and lower limit of the effective quoted price is 35.20 yuan and 35.15 yuan respectively. And the first 25 enterprises under the net effective quotation upper and lower limit fluctuation range is 1.45%-15%.

This also means that there is a convergent trend in the price range of inquiry. Under the net, investors' anticipation of the inquiry price of the science and technology board has gradually approached, and the concentration of inquiry has been increasing. In this regard, CIC's strategy team also found that the effective range of recent listed companies has gradually converged to the 68.3%-68.7% of the reference range of the investment report.

Behind the continuous increase in the concentration of enquiry is the embodiment of the market's reliance on the anchorage function of price reporting. According to the rules, the main underwriter chamber will provide an investment value research report to the inquiry institutions. The report will list the valuation intervals calculated by the main underwriters, and the inquiry objects will decide the participation in the online purchase according to the basic materials of the issuer's prospectus and the market price comparable to the company price and the materials provided by the main underwriter. After receiving the quotation of the inquiry object, the issuer and the main underwriter determine the issue price according to the relevant rules.

But Wang Jiyue, a senior investment banker, pointed out: "the issue price on the surface is determined by the issuer and the lead underwriter. Theoretically, the object of inquiry is more powerful. However, in the period when the new stock is the seller's market and investors generally expect the market to be unbeaten, the issue price is actually determined by the investment value research report. Under the unbeaten expectations of new shares, it is profitable to buy new shares at the issue price, only to earn more and earn less. It is not necessary for the investor who thinks the seller can make a profit to participate in the quotation.

As Wang Jiyue said, the science and technology board is currently at a time when investors are not defeated by market expectations. Judging from the current trend of the more than 30 companies going public, the new revenue after the IPO is very impressive. Investors are more concerned about whether they can be finalists and not whether the pricing is reasonable or not.

On the other hand, the success rate of winning new online games continues to decline. According to the statistics of link securities, whether the success rate of online distribution or the success rate of issuing under the net, the 9 enterprises listed after the first batch of enterprises are lower than those of the first 25 enterprises. This may be related to the increase in the number of qualified investors who have opened accounts.

"In this case, the investment institutions are more cautious, and the slight increase in the price range of the investment banks is the most reliable way of bidding at present. The agencies are doing so, so the upper and lower limit of the effective quotation is smaller and smaller, and the concentration of the quotation is higher and higher, which has a great impact on the market oriented quotation method encouraged by the science and technology board." Beijing area a large brokerage investment bank department believes.

Wang Jiyue also said: "in the early stage of the opening of the science and technology board, whether it is based on hot spots or scarcity, the market generally expects that the new shares will not break down, and at least it will not be broken at the opening. Even before the market mechanism works, the inquiry agency will still not believe that it will soon break down even though it may eventually break down. So getting chips is the most important thing. How to ensure that chips are available? It is the most rational choice than the anchor price report given by the broker.

On the other hand, the level of sponsor broker is also uneven. It only exposes a lot of problems only in the normalization of the price report. Relying on such a pricing standard, the valuation of the science and technology board enterprise is huge. Now, when investors are closely monitoring the price report, they will enlarge the related problems.

Stimulating market competition

How to solve the problem of the pricing of new stock issue?

According to the results of the exchange between reporters and many market participants, most of the view is that the supply of enterprises should be further increased, so that the market can get through the shortage of early stage enterprises, the excessive influx of funds in the two tier market, and the sharp rise in the share price of listed companies.

"Only by letting break education investors break the anticipation of unbeaten new shares, can the quotation of inquiry agencies abandon the anchorage of the price report and really study the value of the company." Wang Jiyue said.

Recently, regulators have begun to increase the listing supply of science and technology board enterprises, so that the continuous listing of Ke Chuang board enterprises has become the norm. "We can not create a scarcity of investment targets artificially by the science and technology board, which is against the core of the registration system. We should increase the supply of enterprises and return the option and pricing power to the market." Beijing securities dealers said.

At the same time, regulators are aware of the relevant issues, and have recently issued documents or training courses to further guide the sponsor institutions to sponsor rationally, while paying attention to whether there is sufficient game in the market pricing.

For example, according to the "IPO IPO underwriting business standard", the association has established a stock issuing and underwriting observer mechanism for Ke Chuang plate. The reporter learned that the observers of the association carried out on-the-spot observation on the first batch of listed companies, and found some problems, which included some kinds of information materials that some investors under the net demanded from the underwriting agencies for investment value research, or directly asked for the purchase price proposal, so as to ensure a new success.

In addition, the Securities Association recently issued the notice on further clarifying the requirements of the Research Report on the investment value of the kchuchuang board (hereinafter referred to as the notice), which is aimed at strengthening the performance of the securities companies to fulfill their duties and promoting the reasonable pricing of the IPO.

The notice further clarified the contents of the investment report issued by the broker, and standardized the quality control of the content from seven aspects: "industry and company status analysis", "comparable listing company analysis", "investment analysis", "profitability analysis and prediction", "valuation method and parameter selection", "valuation conclusion" and "risk warning".