IPO Perspective Of "Epidemic In China" During The Year: Over 55 50 Billion Fund-Raising Issuers Rushed To Select Levels

Since the beginning of this year, the new crown epidemic has brought about a certain degree of impact on the one or two tier market, but the IPO market has maintained a relatively normal operation.

In twenty-first Century, the economic report reporters' statistics Wind data found that in the three months since April 20th when the epidemic spread was confirmed and the epidemic prevention policy was upgraded in January 20th this year, a total of 55 companies completed IPO, and the total fund-raising scale was over 50 billion yuan.

Of the above 55 IPO enterprises, 20 are Ke Chuang board company. In the industry view, this data means the financing function of IPO, especially the support for the financing and listing of science and technology enterprises, and has not been interrupted due to the impact of the epidemic.

In addition, because the new three board selection layer is also accelerating the brewing, and the new reform bonus has also been looked at by some IPO enterprises. There are many issuers listed on the new third board announcing that the listing plan of their gem or Ke Chuang board has been changed to a selected layer of small IPO, which will also bring about a diversion to the IPO scale of the Shanghai and Shenzhen stock market in a certain extent.

"50 billion" in epidemic diseases

The impact of the new crown has not affected the IPO market.

55 companies completed the initial listing, financing a total of 50 billion 203 million yuan, which is in the three months from January 20th to April 20th this year, the domestic IPO market delivered transcripts, in the same period last year, only 27 companies to achieve the issue, raising the size of 21 billion 558 million yuan.

This means that, though affected by epidemic and prevention and control work in recent three months, the scale of IPO market has increased by more than 100%.

If the statistics such as Beijing-Shanghai high-speed railway and bulls group were released before January 20th, the IPO scale in the year ended April 20th will be close to 100 billion yuan, an increase of more than 196.36% over the same period.

"IPO has not been affected by the impact of the epidemic this year. Instead, it has a year-on-year volume. This is mainly due to the reform of the IPO system. Last year, the new listing pipeline opened by the science and technology board, which allowed more issuers to meet the requirements for issuing the listing." A broker who is close to the regulatory level said, "it can be said that the reform of the science and technology board is relatively timely. Otherwise, the epidemic may still impact on individual companies. The listing of financing from last year to some extent provides support for such companies."

From the scale of fund-raising, Ke Chuang board company has become the main force of financing.

Statistics show that from January 20th to April 20th, stone technology, Huarun micro and Shanghai silicon industry were the top three issuers of IPO financing in Shanghai and Shenzhen two cities, and three companies were CB companies, raising 4 billion 368 million yuan, 4 billion 236 million yuan and 2 billion 284 million yuan respectively.

"Because of the impact of technology stocks on the end of this year and the beginning of this year, technology stocks also have a higher valuation basis in the pricing of primary markets, and the price of inquiries will be higher than those of previous expectations." An investment bank in Shanghai explained that "the key problem is that the science and technology board does not limit the initial price earnings ratio, and there is also a congenital institutional advantage in terms of pricing.

From the ranking of financing scale, the advantages of Ke Chuang board are self-evident. Reporter statistics found that in the period from January 20th to April 20th, as many as 7 of the issuers of the top ten of the fund-raising scale were companies of Chuang Chuang board. Up to 13 of the top 20 companies were companies.

"This shows that the system has shown a tendency to support the creation of science and technology in the distribution of financing dividends. After obtaining financing, science and technology enterprises can further expand their market share, strengthen R & D investment, and some stocks are expected to show better growth." The above investment bankers said, "the advantages of this kind of fund-raising will also attract more eligible enterprises to go to the science and technology board."

However, in terms of the overall size distribution, many companies still have a relatively small scale of IPO fund-raising. Statistics show that more than 24 companies in 55 companies are raising funds of not more than 500 million yuan, while companies with less than 1 billion yuan in fund-raising are as many as 41.

"In order to stabilize the impact of the IPO market on the two tier market, at the same time, to ensure that more enterprises are listed, there is a certain degree of guidance on the scale of approval, plus the ceiling price ratio of 23 times of the main board and gem, so the initial fund-raising scale of many enterprises is still relatively small, and of course, some items are also related to the size of the company." The investment bankers said.

Investment bank's "no relaxation"

The 50 billion market size of IPO is also a feast for intermediaries.

According to the twenty-first Century economic report reporter statistics, a total of 30 brokerages participated in the IPO underwriting (including joint underwriting) of the 55 companies mentioned above.

Among them, CITIC investment and CICC have two largest number of companies which are well-known for their investment banking, including 6 companies respectively, while the four agencies of Guangdong, Guangdong, Guojin and Xingye undertook 5, 5, 4 and 3 respectively, compared with the other agencies, including CITIC, Haitong, monarch, etc.

"Investment oriented brokerage firms still show their business advantages in the epidemic, and the whole team is not affected by the epidemic too much. Of course, travel restrictions are unavoidable." An investment bank close to CICC said.

It is worth mentioning that although some issuers have completed the IPO, there are still many intermediaries who do not relax the supervision of the follow-up projects.

Reporters learned that some investment banking projects for ongoing and preparation of the IPO project was affected by the impact of the epidemic in-depth investigation and monitoring, in order to prevent the occurrence of related risks.

"The impact of this epidemic on the supply chain is quite obvious. Some of the science and technology enterprises belong to the manufacturing industry, and the manufacturing industry is obviously affected by the supply chain seriously. If the overseas epidemic continues to spread, some suppliers' production capacity and customer liquidity problems will bring impact to these enterprises, and even appear in the first year of the listing." Those close to CICC said.

In the view of investment bankers, although the epidemic has been preliminarily controlled, part of the stockpiles of brokerages may still be affected.

"The financial performance of some reserve projects may meet the requirements of listing, but under the impact of the epidemic, it is likely that they will suddenly not meet the rigid targets of listing. This phenomenon estimates that the main board and gem will be more." A representative of Shanghai Bao Dai said, "but for enterprises, it may be several years to meet the requirements. Although supervision has also given some window support policies and research measures, the final impact geometry is still unpredictable."

In its view, the pace of reform of the IPO system with light profits and heavy faith is becoming an opportunity for companies concerned.

"If the epidemic causes some companies to be hit by the impact and not meet the listing requirements, then the ongoing IPO reform is likely to become a new opportunity for these enterprises." Bao Chao said, "the impact of the epidemic on some enterprises is accidental. After being controlled, the corresponding supply chain and industry will also be revived, and the value of these enterprises will not be ignored by the market."

Transfer of selected layers

In fact, behind the IPO scale of 50 billion of the epidemic, part of the IPO companies are turning to the new third board selection layer.

For example, in April 3rd, yyma online bulletin, which had been listed on the gem listing guidance, announced that it would change its initial listing application to select layer listing.

Some of the declarations of the science and technology board have joined the select ranks. In April 15th, the new three board company first announced its application for public offering and listing on the selected level, while CICC was a counselling and recommendation agency.

According to incomplete statistics of the twenty-first Century economic report, as of April 20th, there were not less than 36 new three Board companies from the original A share IPO application to the selected layer of small IPO.

This has nothing to do with the pace of reform of the new third board selection layer this year.

The reporter noted that since the beginning of this year, the SFC and the stock transfer system have speeded up the work of the selection layer reform, and the related institutional investors' requirements such as deregulation, transfer mechanism and public offering to enter the market have also come to the end.

"Under the reform of many systems, the system superiority of the selected layer is constantly approaching the" Chuang Chuang "board, and more incremental funds are also entering the market. An investment bank in Shanghai, a medium-sized brokerage firm, said, "the valuation effect has naturally attracted the attention of some issuers, and the intermediaries, taking into account the project cycle, fund-raising cycle and other issues, are encouraging some companies to turn to select layers."

For issuers, the difference between the selection layer and the A share listing is mainly determined by the listed companies, but the system of issuing financing and continuous auction trading mechanism are almost the same.

"There are also some listed company with IPO willing to insist on going public. Actually, on the one hand, they feel that there is a difference between listing and selecting layers. Another is that in the past few years, the new three board reform has been relatively slow, which has bred these companies' distrust of the three boards." The above investment bankers said, "but in fact, the selection layer has been equivalent to reinventing a" small board "in various mechanisms.

In fact, the market has responded to the anticipation of the selection reform. For example, the three board market making index has risen 5.73% since the three trading day since April 15th, and has risen 21.93% this year.

Insiders believe that if the gem reform is expected to lack substantive progress, it is not ruled out that some unlisted companies will also strive for the dividend reform of the selected layer through listing.

"At present, the pace of the reform of the selected layer is more determined, and the valuation of some companies has increased significantly in the stage of innovation, so the attractiveness of some enterprises is growing." An investment banker close to the stock transfer system said, "at present, the reform of the growth enterprise market does not know when there will be any movement. If the cycle is slow, there may be some non public companies going through the listing of the new three board innovation layer, and then indirectly seeking the possibility of small IPO."

On the scale of fund-raising, the scale of selective financing is even lower than the current A share market. For example, since this year, 72 companies listed on A shares, as many as 30 companies have failed to raise funds by more than 500 million yuan, of which 13 companies are less than 400 million yuan in fund-raising.

The market expects that the size of the collection of small IPO will probably range from 200 million yuan to 500 million yuan, which is equivalent to that of A shares.

"If the scale of the fund-raising is quite high, and the supporting mechanisms such as trading mechanism and investors are also available, then the selection layer may be a more convenient choice for some issuers." The investment bankers who are close to the stock transfer system think, "however, speeding up the reform of the selective layer will indirectly speed up the reform of the growth enterprise market, but it still depends on how the relationship between the market and the supply of the system will be linked and adapted."

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