Postal Savings Bank'S IPO Is Approved To Be The Second Largest Financing In Five Years With A Scale Of 30 Billion

The IPO of China Postal Savings Bank Limited by Share Ltd (hereinafter referred to as postal savings bank) is still advancing rapidly.

In October 25th, the SFC official announced that it had approved the issuance application of 4 IPO issuers, including postal savings bank, in accordance with statutory procedures.

This means that from the end of 6, the declaration of IPO is now approved, and the IPO of postal savings bank has only been used for more than 4 months.

According to the information released, the postal savings bank's planned issuance scale does not exceed 6% of the total share capital, which will enable the postal savings bank to become the largest IPO project in the year.

It is worth mentioning that the siphon effect brought to the market by more than tens of billions of dollars in raising funds has also attracted the attention of the industry. However, according to many investment bankers, the majority of bank shares are in a state of breaking up in the two tier market, which may cause the postal savings bank to postpone the issue due to the high price earnings ratio.

Second major IPO projects in five years

The first application for a postal savings bank with 10 trillion assets A shares was officially approved by the SFC.

It is worth mentioning that the postal savings bank in October 24th will be separated by only one day, further extending the "lightning speed" listed on the project.

However, in the face of the upcoming postal savings bank, which is to be unveiled in the A share market, many two tier market investors are worried about its massive fund-raising.

According to the pre disclosure information of the postal savings bank, as of this year's China Daily, the total assets of the postal savings bank has exceeded 10 trillion, and the number of A shares issued by the postal savings bank will not exceed 5 billion 172 million shares, which will not exceed 6% of the total share capital issued by A shares. According to the net assets of 5.49 yuan, the maximum size of the postal savings bank's total fund-raising will reach 28 billion 394 million yuan.

It is worth mentioning that the scale of the fund-raising will not only exceed the central bank's total of 12 billion 500 million yuan, but will also become the largest new investor in the year, and it is also the second largest IPO project after 30 billion 58 million yuan Guotai Junan in the past five years.

However, reporters statistics found that the scale of the tens of billions of fund-raising in the A share market is still relatively small. The Wind data show that as of October 25th, the average daily turnover of the first 20 trading days of the ten thousand A was 420 billion yuan, while the 28 billion 394 million yuan fund-raising scale accounted for only 6.70% of the average daily turnover.

However, due to the accelerated issuance of IPO projects and the emergence of individual large numbers in the near future, there are also concerns about the impact of such a large IPO market sentiment.

This phenomenon does exist. There are as many as 16 new shares issued in a week in from October 21st to 25th. On the other hand, there are already more than 11 IPO projects scheduled to be issued not later than November 20th, including the Zhejiang Merchants Bank with a scale of 12 billion 597 million yuan.

"At present, the number of IPO projects from the end of October has begun to spread. It is expected that November will become the peak period of fund-raising for IPO issuance. Even if the impact of transaction level is relatively limited, we can not ignore the influence of emotional level." A private Beijing agency official said, "do not exclude some funds in order to avoid the high incidence of IPO and choose the possibility of defensive strategy."

Or it will be postponed.

Generally speaking, soon after the IPO issuer gets the issue approval, the specific issue will be launched, and the inquiry roadshow and the issuing time will be arranged. However, in the IPO project of the postal savings bank, there will probably be a delayed issuance.

The reason is that the vast majority of bank stocks are in a broken state. In this case, bank stock IPO usually determines the issue price by net assets per share.

In twenty-first Century, according to Wind statistics, in the 33 listed banks, the net sales rate dropped to 1, up to 21, accounting for 63.64%.

The general break brings the lower price earnings ratio of the banking sector. The data show that the P / E ratio of not less than 21 banks is less than 10 times. According to the banking index released by China Securities Index Co, its static P / E is 6.86 times, and the average in the past month is only 6.67 times.

Similar issues are also reflected in the H shares of the postal savings bank. Wind data show that the average price of the postal savings bank as of the 20 trading days before October 28th is 4.87 yuan / share, and the latest phase of the net market rate is also at a broken state of about 0.80.

However, the initiation and issuance of state-owned shares are usually not lower than the net assets per share. Therefore, the postal savings bank determines the issuing price by net assets per share.

"Postal savings bank is a big state-owned bank, and the issuing price can not be lower than the net assets per share, so usually this situation will determine the issuing price by net assets per share." An investment bank in Shanghai said.

If the issue price is determined at the end of the two quarter of 5.49 yuan per share net assets, the issue price of A shares of the postal savings bank will be more than 12.7% higher than that of the H-share price, and the P / E ratio will be 12.77 times, which is much higher than the current industry average price earnings ratio.

"If the postal savings bank is issued on net assets, the approximate rate will far exceed the current industry average price earnings ratio, which will have to delay the issuance." The investment bankers said.

Higher than the industry average price earnings ratio of the delayed issuance requirements, and the SFC issued in 2014 on the strengthening of IPO supervision measures, according to its regulations, the issue price or issue price interval upper limit is higher than the same industry listed company two level market average price earnings ratio, issuers and underwriters should be issued online purchase within three weeks, issued a continuous investment risk special announcement, at least once a week.

Similar cases also appear in the IPO issuance process of some former bank shares. For example, the 2 billion 550 million A shares offered by Zhejiang Merchants Bank were also priced at 4.94 yuan per share at the end of the second quarter due to the issue price, resulting in a 9.39 times earnings ratio after the issuance. The average static P / E ratio of the banking industry in the China Securities Index Co over the past month was 6.91 times higher than before, triggering an extension mechanism.

Coincidentally, Jiangsu bank, Qingdao bank, Zijin bank, Chengdu bank, Wuxi bank, Jiangyin bank and other banks were listed on the issue of new issue price higher than the two class market price earnings ratio announcement issued postponed.

However, in the view of people close to postal savings bank, although there may be delayed issuance, the final success of the postal savings bank is only a matter of time.

"Postal savings bank's A share listing has been prepared for many years, and the relevant communication with supervision has also been very sufficient." An investment bank close to the postal savings bank said, "as the last big line of A share IPO project, although the postal savings bank pricing may be higher than the average industry value, but because there is a certain stock market effect after listing, so the probability of breaking up in a short time is not large."