Select Layer IPO First "Retreat Drum": Epidemic Test Is Coming

Some of the companies have already begun to play the drums and drums.

The self access media, which had entered the IPO transfer period, issued a notice recently. It said that due to the impact of the epidemic on the upstream industry, and considering that the timing of the initial selection of the selected layer was not mature enough, the company and friendly securities negotiated with unanimous securities, and agreed to terminate the public offering of shares to the unqualified investors and the counselling on the selected layer.

This means that the impact of the new crown pneumonia epidemic on the IPO market is emerging. People with investment bank said that because many sprint new three Board companies may be meeting in the second half of the year, it is necessary to take the financial situation in the first half of 2020 as the basis for audit, and the epidemic will impact on the listing plan of the relevant issuers.

Another industry pointed out that, along with the requirements of the innovation board and gem registration system for the emerging industries, the selected industries in the traditional industries will also face a larger market value test.

At present, the reform of the transfer layer is quietly advancing, and the "reform expectation" of the selected seed players is clearly showing the trend of accelerating differentiation.

Potential impact

The termination of the free media is undoubtedly the victim of the new crown pneumonia epidemic.

Statistics show that the main business of free media is entertainment marketing planning services, such as film and television works, network self made dramas, network variety shows, TV dramas and so on.

"The film and television industry is one of the most influential industries that have been most affected by the epidemic. On the one hand, the cinema has stopped, on the other hand, it has reduced the demand for aggregation and basically has not been filming. The whole industry has almost stopped." A film and television company in Beijing said.

In the above announcement, the free media said frankly that the reason for its decision to terminate the listing plan was due to the downturn in the upstream industry caused by the impact of the epidemic.

In fact, the performance of the free media itself is also showing a downward trend.

Wind data showed that in the first three quarters of last year, the free media revenue was 89 million yuan, and net profit was 13 million yuan, down 5.25% and 17.72%, respectively. Compared with the previous year, the revenue of the free media has also increased by more than 30%.

The collapse of IPO in the free media has also affected many of its institutional shareholders. According to the twenty-first Century economic report reporter statistics, as of the end of the three quarter of 2019, among the top ten largest shareholders of the free media, the latter seven were institutional shareholders, of which 6 were limited partnership funds.

Through the shareholding structure, we can find that there are many listed companies and institutions behind the free media.

Among them, Yuexiu gold control, Huayi Brothers, Buri communications, Wen voted holdings and many other listed companies, as well as Yong Ying fund, Tong Chuang Weiye, and other financial institutions, have indirectly participated in the investment of the free media through the limited partnership fund. Today, the "retreat drum" of its transfer layer and small IPO is also laying a solid foundation for the investment of these listed companies and institutions.

In the view of the industry, the voluntary abandonment of the free media on the transfer layer, on the one hand, means that the impact of the epidemic is causing substantial shocks to some of the proposed transfer enterprises. On the other hand, it also explains the relevant requirements of the selection layer reform and the process of guidance record and audit, which is bringing pressure to some issuers.

"(free media) withdraws guidance, indicating that the selection of small IPO is not as long as it meets the requirements of the transfer layer, but it has the strict requirements for the standardization of enterprises, the authenticity of information disclosure and even the issuer's willingness to issue." An investment banker close to the stock transfer system said, "don't think the regulators will relax the audit because of the new three boards."

At the same time, the person said that the small IPO hard threshold of the selected layer is lower than that of the A share market, but the requirements of the audit process, compliance and disclosure are not weaker than those of the listed companies.

According to its forecast, more issuers may choose to give up the transfer layer IPO in the later stage, or even have the declared material withdrawn, or the individual issuer may be rejected or not approved.

"Although it is a key reform project in the capital market, from the case of" Chuang Chuang board ", there will be more and more companies who fail to meet the requirements in the reform process of selective layer, and will be forced to abort. The investment bankers predict that.

Stock transfer data showed that as of May 19th, a total of 32 new three Board companies had entered the audit acceptance process of the selected level transfer layer. Among them, the number of inquiries had reached 21, while the number of new three Board Companies in the three categories of guidance materials, guidance period and completion of the tutorial and acceptance reached as many as 104.

Market shock

In fact, the uncertainty of selective sprint has been a drag on the potential valuation of the new three board market.

Data show that the innovation index reflecting the price level of the new three board innovation layer has reached 1483.94 points since it reached 1523.40 point high in May 6th, and the index appeared on the weekly line.

"Before the selection layer reform has just started, in fact, the enterprise of innovation level has welcomed a round of inflation, and along with the successive counselling, declaration, queuing audit and inquiry of these enterprises, the market divergence is also increasing, and the price adjustment of some companies is very obvious." A private company in Shanghai, which is concerned about the opportunity to select the third board, said, "from another perspective, it is more difficult to choose the level of investment in the innovation layer."

Another investment bank sources said that at present, some of the selected audit questions of the selected companies are similar to the previous A share IPO cases, which means that the audit of the selected layer will not be relaxed due to the attributes of non-listed company.

"Some of the enterprises that are asked to select questions are very similar to A share companies in the same industry, which shows that these problems are the concerns of the auditors. A Shanghai listed brokerage investment bank said, "if the same industry company did not solve such problems in the A share IPO, then it would be a substantial obstacle to the IPO when it was copied to the audit logic of the selection layer, and it would also bring uncertainty to the relevant company's transfer layer expectations."

At the same time, the reform of the selected layer which was originally expected to be transferred to the transfer board is also expected to be more differentiated because of the special support of the Chuang Chuang board and the gem to the emerging industries.

On the one hand, the convertible A shares of the new third board selection layer have been identified as the "Chuang Chuang" and "gem".

? ? But on the other hand, Ke Chuang Chuang and gem have strict requirements for listing. Since last year, the science and technology creation board has been famous for supporting the hard technology industry. It has clear positioning and vertical requirements for the industry of the issuer; the ongoing gem reform, and the advice from regulators to the broker also shows that it does not support agriculture, forestry and animal husbandry in principle. The "traditional industries" such as auxiliary fishing, mining, accommodation and catering, financial and real estate, residential services, hydropower, construction and transportation.

If it is a listed company in the traditional industry, its transfer board is expected to be greatly reduced, unless the future can be clear that it can directly switch to the motherboard, otherwise its valuation is bound to open a big gap with some emerging industries. The official of the above private placement said frankly, "there will be even some selected companies in traditional industries. Even if they are over, they will face greater difficulty in issuing pricing."

But at the same time, it also said that the poor valuation will bring certain opportunities to the value investment of the selected layer.

"At present, the differentiation of industry valuation is inevitable, but it will also bring some investment opportunities, because some consumer companies may not be new areas, but the value of the company is likely to be underestimated." The above private placement agency official said.

Differentiation of industry "regulation"

It is worth mentioning that the choice of the free media to be transferred to the IPO level due to the epidemic situation has also been regretted by some enterprises in the same industry.

"The epidemic has hit the industry a lot, and IPO has not satisfied the conditions. The industry will only accelerate the recession." People listed in the film and television industry said.

Some people in the industry have suggested whether IPO policy should be adopted to increase support for the affected industries and enterprises.

"Before the market has considered the impact of the epidemic on the issuer, and many are the impact of performance and fundamentals, but from another perspective, because these enterprises are affected by the epidemic, they should be more supported by IPO and other policies. Therefore, in the encouragement of stock transfer, there are also issuers and investment banks to make recommendations as far as possible." The former Shanghai investment bankers said, "whether regulatory and trading venues can also consider increasing support for industries that are more affected".

"But from the perspective of free media, epidemic factors do exist and are likely to have a substantial impact on the transfer layer and small IPO." The investment bank pointed out.

However, some analysts have pointed out that the event of material withdrawal by the issuer represented by the free media reflects a more obvious marketization feature.

"Whether or not the free media can be willing to go is actually voluntary. This reflects the market neutral principle of trading places." A strategic analyst of a listed brokerage firm in Beijing said, "if we support the IPO that is affected by the epidemic, though it seems to be a counter cyclical mediation, it will actually be unfair to investors, and it will also lead to some degree of" policy Instrumentalism "to some extent.

"In the market selection pricing mechanism of the selected layer, there may still be the same situation as the free media. Even if we don't worry about it, we will consider whether we can achieve the smooth issuance of the inquiry. Under the direction of the registration system reform, we should not let all the companies go smoothly, otherwise the market will become a money machine." The above analysts said, "real gold is not afraid of fire. If the industry and the company really have no problems, those enterprises that do not consider the transfer of listed companies will eventually come back."

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