IPO Under The Impact Of The Epidemic: Investment Bank'S Potential Impact On Hubei Project Evaluation

The outbreak of pneumonia caused by a new coronavirus is affecting the IPO ecological chain.

In twenty-first Century, the economic news reporter learned from a number of investment bankers of the securities industry that along with the spread of the epidemic, and the closure of cities in several cities of Wuhan and other provinces of Hubei, the impact of IPO on local and local related enterprises is inevitable.

Of course, the overall progress of IPO and other investment banking operations will be delayed due to the nationwide implementation of the epidemic prevention.

According to the analysis of a number of investment bankers, the impact of the epidemic on the IPO field is mainly reflected in two aspects. First, the intermediary agencies involved in the operation and due diligence of Hubei regional companies will be affected. Two, the main customers or suppliers are located in Hubei and other high incidence IPO Enterprises. The production and operation of the company may be subject to a certain impact, leading to the failure of the company. Sufficient listing standards.

6 Hubei enterprise IPO queue

According to the twenty-first Century economic report reporter statistics, there are 6 IPO enterprises in the Hubei area, including 3 scientific creation boards, 2 main board and 1 gem, including Wuhan branch biological Limited by Share Ltd and Wuhan Hui Sheng bio Polytron Technologies Inc are two pharmaceutical manufacturing enterprises, and the other four are in four major chemical raw materials, beverages, software and environmental protection. Industry.

At the same time, 15 local enterprises in Hubei have completed the registration of guidance. In the above 21 Hubei IPO enterprises, there are 9 enterprises in Wuhan.

Reporters also found that a total of 16 brokerages in the above 21 projects as sponsors (joint sponsors separate calculation), Haitong Securities, Guotai Junan project the largest, reaching 3, followed by five mines, the Yangtze River has 2 projects, CITIC, Anxin, Guangda, Guangfa, Huali, Tianfeng, including 12 brokerages each has 1 projects.

An investment bank member who has participated in the IPO project in the Hubei area has admitted that the progress of the project is expected to be delayed, and the progress date is still to be determined.

"It has been difficult to determine the current progress and the time to resume work, because during the counseling period, the related business trip will definitely stop in a short time." Lin Xiao, a Shanghai brokerage company's three board business person, admitted that "if the queuing companies are probably doing well, because most of the early stage adjustment is completed, the rest is to supplement the materials, but for the guidance period and the earlier stage of the project, the progress will be significantly affected."

It is worth mentioning that at present, the SFC has indeed opened up corresponding green channel policies for enterprises in Hubei, such as "special reception" and "special audit" to optimize the working process of corporate bonds and asset backed securities. However, in the field of IPO and other policy areas, there has not yet been any special policies that are related to it.

"Under the current relief policy, corporate bonds and ABS including new three boards have a clear policy to give priority to audit, but there is no clear definition in the field of IPO." An investment banker close to the regulator said, "this initiative is not difficult to understand in itself, because corporate bonds and ABS are only fixed income financing instruments. Investors are relatively limited in scope, while IPO has higher externalities. Special operations are likely to cause moral hazard."

In addition, insiders are concerned about whether Hubei's two brokerages, Changjiang and Tianfeng securities, will also be affected in the development of investment banking business.

However, reporters from the two sides close to the Yangtze River and Tianfeng know that the daily work of the two brokerages' investment teams is mostly in Beijing and Shanghai, and related investment banking can also be carried out online, with relatively limited impact.

"Headquarters in Wuhan, but most of the investment banking teams are in Beijing and Shanghai, so the impact is not big." A source close to Changjiang Securities revealed.

Potential impact to be estimated

In fact, even if Hubei regional companies enjoy corresponding institutional relief in the IPO sector, many enterprises with upstream and downstream relations with Hubei area may also be affected.

"Hubei, especially Wuhan, has a large number of local electronic enterprises, playing a more important role in the industry supply chain. If production and operation are affected, the upstream and downstream enterprises will be affected." A listed brokerage electronics industry analyst admitted.

Reporters learned that some brokerages have already investigated whether there are five top customers in Hubei province.

"We are not only concerned about the back-up projects in Hubei, but also statistically analyzed the projects of the top five customers in the Hubei area, including the potential projects of IPO, refinancing and new three board small IPO, and the corresponding coping strategies are formed by specific teams." A large listed broker investment bank admitted.

"The impact of different industries may be different, if it is the medical and health industry, but this time point has greater potential for performance." The investment bankers said, "but most industries will still be affected. For example, the consumer enterprises may have problems in the one or two quarter, which will eventually lead to problems in their listing."

Another industry pointed out that the current epidemic situation in Hubei is bringing uncertainty to the local and related IPO potential projects.

"For some non key epidemic provinces, the relevant control measures will be phased out and released after the epidemic has been relieved or controlled. However, the confirmed cases and suspected cases in Hubei, which are represented by Wuhan, are still growing. It will not be clear at what time point they will be controlled." Beijing, a brokerage investment bank team leader said, "this obviously has some impact on Hubei Hubei's back-up projects."

"If the epidemic persists for a long time, even many brokerage firms will avoid Hubei related projects in one cycle." The person in charge said frankly.

Not only that, there are also some possible miscarriages of reserve items.

"There are some projects that have potential listing and listing intentions, but at the moment, there is no way to start negotiations and initial exploration, and the extension of downtime itself will lead to the impact of business performance and valuation expectations." The person in charge also pointed out that "so many securities companies are beginning to stop accepting the back-up projects from the Hubei area, and thus affect the listing of Hubei's local enterprises."

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