35 Billion Beijing-Shanghai High-Speed Railway, The Big Mac Will Be Issued Immediately After War, With The Fund, The Timing Of The Issue Or The Huge Test Will Be Carried Out.

The Beijing-Shanghai high-speed railway has issued the first batch of IPO approval, and the issue has been on the way.

In twenty-first Century, the economic report reporter learned from several investment bankers who were close to Beijing-Shanghai high-speed railway. In from December 23rd to 27th this week, the issuance of Beijing-Shanghai high-speed railway is expected to start, but the final payment and listing rate will take place in January 2020.

According to the prospectus information, the scale of Beijing-Shanghai high-speed railway's potential fund-raising will exceed 35 billion yuan, becoming the largest IPO project in 9 years, and become the eighth largest item in IPO's history.

Although large-scale fundraising is likely to have a potential impact on the market, it has been learned by reporters that the strategic placement mode will continue to be used under the Beijing-Shanghai high-speed railway, and that most of the strategic placement funds will participate in the whole lineup. In addition, the A share index has continued to stabilize and recover in recent years under a number of favorable factors. The impact of the project on the market is still relatively controllable.

The issue is "in the balance".

On the evening of December 20th, the approval document for Beijing-Shanghai high-speed railway IPO project, which had been waiting for more than a month, finally appeared in the list of enterprises issued by the SFC.

Unlike previous market expected "overnight approval", Beijing-Shanghai high-speed railway's final approval time has been over for more than 1 months.

"Beijing-Shanghai high-speed railway projects are almost always green from declarations, feedback, feedback, and meetings." A buyer who was concerned about the Beijing-Shanghai High-speed Railway said, "but after the meeting, the approvals were delayed. This is obviously abnormal."

Although the approval was later than expected, the Beijing-Shanghai high-speed railway still overtook the industrial Fu Lian in one fell swoop, setting a record of issuing the fastest project from the declaration to the first batch of approvals since the IPO approval system.

In twenty-first Century, the economic news reporter learned from a number of investment bankers close to the regulatory level that the reason why the Beijing-Shanghai high-speed railway's final approval was delayed was related to the intention of regulators to control the issuing rhythm to reduce the excessive impact on the market and the large scale fund-raising of Beijing-Shanghai high-speed railway.

If the Beijing-Shanghai high-speed railway's net profit in 2018 was 10 billion 248 million yuan to the parent company and calculated at 50 billion 377 million yuan, its earnings per share after the issue were about 0.203 yuan. According to the earnings per share level, the 22.98 times earnings price limit of the motherboard IPO and the issuing scale of the 7 billion 557 million shares, the price of the Beijing-Shanghai high-speed railway is about 4.66 yuan, and the maximum size of the collection of the Beijing-Shanghai high-speed railway is expected to exceed 35 billion yuan, the largest IPO project in 9 years.

"The overall purpose is to control the pace of issuance, because the market has already had the bank shares of Zhejiang Merchants Bank and postal savings bank. The scale of Beijing-Shanghai high-speed railway is also very large, and centralized issuance will make the market bear more pressure." An investment bank official close to the regulator said, "some bank stocks were broken down at the time, and this market situation is also bad for issuers."

Some listed banks have indeed broken down. In November 26th, Zhejiang Merchants Bank announced that the first day of listing broke down and fell more than 7.29% in the next 7 trading days. Before the listing of Chongqing Agricultural commercial bank, the stock price continued to descend in November and fell below the issue price in the tenth trading days.

"But at that time, the extreme situation of the first market has passed, and the A shares have reached 3000 points again, so the market conditions for the Beijing-Shanghai high-speed railway are more mature." An analyst at a brokerage industry in Shanghai said.

How to deliver large quantities of distribution?

Despite the delay in the issuance of the approval, Beijing-Shanghai high-speed railway has occupied the "time and place advantages" of the issuing rhythm, but the huge scale of 35 billion yuan fund-raising is still prone to disturb the market at the emotional level.

"The issuance of some large projects often has an impact on market sentiment, and then brings pressure to the index. For example, 60 billion of PetroChina in 2007 and 30 billion Guotai Junan in 2015 were on the eve of market adjustment." The analyst said, "so how to deal with the scale of the about 35000000000 fund-raising will also bring a real test to the Beijing-Shanghai high-speed railway project."

The strategic placement with lock up period is expected to become a big hedge issue scale.

In fact, the strategic placement mostly appears in Foxconn, postal savings bank and China Guangdong Nuclear A IPO Big Mac projects. For example, in the issue of postal savings bank, 8 strategic investors, including the central bank and the central enterprises fund, accounted for 40% of the total issue of IPO, while 6 strategic placement public funds, which completed the fundraising last year, participated in the placement.

"Taking into account the issuance of key projects, the proportion of strategic placement will also be maintained at over 40%." A close to Beijing-Shanghai high-speed railway investment bank analysts pointed out that "six national teams (strategic placement) fund is likely to participate."

According to the calculation of the 40% placing ratio, the proportion of the strategic distribution will be no less than 14 billion yuan in the calculation of the issuing scale of 35 billion yuan, while the part of the regular distribution mode is 21 billion yuan.

In addition, according to an investment bank analyst, the choice of the issuing time point can also avoid the concentrated issuance of new shares and the time when capital is usually more intense.

If the Beijing Shanghai high-speed railway is launched in a week in from December 23rd to 27th, the final payment and listing time may occur in 2020 January, and it will avoid conflict with the tight funds at the end of the year. An investment bank in Shanghai said.

In fact, the current market environment has created conditions for the issuance of large volume of Beijing-Shanghai high-speed railway. Wind data show that since December, the Shanghai Composite Index has risen 3.90%, and once stood at 3000 points, and turnover has also shown a gradual trend of activity.

"Under the multiple macro positive factors, A shares are stabilizing, and the scale of index and market returns has returned to life. This has created a relatively favorable distribution environment for the massive volume project IPO, represented by Beijing-Shanghai high-speed railway." The investment bankers close to Beijing-Shanghai High-speed Railway said, "if we start from the current issue, the final payment date will probably not wait until next January, which will also avoid the tight funding at the end of the year and reduce the impact on the market and distribution."