Original title: A-share IPO inventory in 2021: 520 listed companies have raised funds exceeding 540 billion
As the issue price of companies rises, investors’ new yields have declined, and the first day of discovery of new stocks is no longer a novelty in the A-share market.
With the continuous advancement of the registration system, the number and value of IPOs in the A-share market in 2021 have reached record highs.
According to Wind data, as of December 28, the total number of new A-share listings since 2021 has reached 520, of which 121 are listed under the approval system (87 on the Shanghai Stock Exchange and 34 on the Shenzhen Stock Exchange). There are 160 and 198 companies listed on the ChiNext, and 41 companies are listed on the Beijing Stock Exchange.
On the whole, in 2021, 520 listed companies have raised more than 540 billion yuan in total funds, while in 2020 there will be 437 A-share IPO companies, with a total annual fundraising of 480.6 billion yuan. In 2021, the number of IPO companies and the amount of funds raised were respectively year-on-year An increase of 18.99% and 12.36%.
Industry insiders predict that as the reform of the registration system accelerates, the number of IPOs and the amount of funds raised will remain high in the future. More and more entity companies are expected to land in the capital market, leveraging the capital market to achieve high-quality development.
“The normalized IPO has already taken shape. Under the background of the future registration system, the pace of IPOs will only accelerate year by year, rather than decelerate. Of course, with the increase of IPOs, the pressure on stock market liquidity cannot be ignored. Support The larger-scale issuance of A-share IPOs needs to rely on the further opening of A-shares. On the one hand, it attracts domestic funds to move closer to equity investment and uses the wealth effect to stimulate enthusiasm. On the other hand, it attracts foreign capital to enter China and invest in A-shares through opening up.” Pan Helin, Executive Dean of the Institute of Digital Economy of the University of Economics and Law, pointed out in an interview.
Nearly 70% of IPOs are issued through registration
Since the implementation of the registration system reform, the efficiency of corporate listing has been significantly improved, and a large number of technologically innovative companies have poured into the capital market.
According to the 21st Century Business Herald reporter, among the companies that have landed on the A-share market this year, nearly 7 of them are issued through the registration system. In 2021, there will be a total of 358 IPO companies on the Sci-tech Innovation Board and ChiNext Board, accounting for 68.85% of the total. The number of IPOs on the Growth Enterprise Market ranks first, and the amount of funds raised on the Science and Technology Innovation Board ranks first.
In November 2021, after the opening of the Beijing Stock Exchange, another 41 companies have landed on A-shares through the NEEQ selection layer, raising a total of 7.508 billion yuan. The number of IPOs and the amount of funds raised accounted for 7.88% and 1.39% of the total number of the year. .
In addition, one of the companies relisted for delisting stocks. On the evening of November 10, the Shenzhen Stock Exchange issued an announcement on the re-listing of Huilv Ecological Technology Group Co., Ltd. stocks. Huilu Ecological shares will be listed for trading on November 17, 2021.
According to data, Huilv Ecological has suffered losses for three consecutive years in 2001, 2002, and 2003. The company’s shares have been suspended from listing on March 22, 2004, and the listing has been terminated on July 4, 2005. On June 19, 2019, the company submitted a stock relisting application to the Shenzhen Stock Exchange. On August 20, the Shenzhen Stock Exchange made a decision to relist the company’s stocks.
Huilv Eco said that since the termination of listing in 2005, the company has reduced its debt burden through bankruptcy and reorganization, and attracted capable restructuring parties to inject sustainable profitable high-quality assets into the company through major asset reorganization, so that the company has restored its profitability; The non-tradable shares of the company obtained the right of circulation through the share-trading reform, eliminating the difference in the nature of the company’s equity.
In general, among the IPO companies that will go public in 2021, technology stocks are the main focus. From the perspective of industry distribution, the computer, communications and other electronic equipment manufacturing industries have the largest number of listings, with a total of 62 companies listed; followed by the special equipment manufacturing industry, with a total of 54 companies listed; the remaining chemical raw materials and chemical products manufacturing industry, There are 37 and 35 companies listed in the electrical machinery and equipment manufacturing industries respectively.
From the point of view of intermediaries, the head institution is still the biggest “winner” this year. CITIC Securities, CITIC Construction Investment, and Haitong Securities separately sponsored 59, 39, and 34 companies to successfully go public, helping companies to raise funds for a total of 895.24. Billion yuan, 39.14 billion yuan and 30.101 billion yuan.
In addition, CITIC Securities and Minmetals Securities jointly sponsored Changyuan Lithium (funding 2.725 billion yuan), China Telecom and China International Capital Corporation jointly sponsored China Telecom (47.904 billion yuan), and Haitong Securities and Guotai Junan jointly sponsored Shanghai Rural Commercial Bank (fundraising). 8.584 billion yuan) and so on.
Some small and medium-sized institutions also successfully counterattacked in this IPO feast. For example, Minsheng Securities listed 30 projects this year, raising a total of 18.405 billion yuan. Essence Securities and Guojin Securities listed 20 and 19 projects, respectively, and raised funds. 10.296 billion yuan and 13.317 billion yuan.
Fighting new myths no longer
From the perspective of fundraising, the fundraising situation of each company is also in a state of duality due to the influence of the company’s quality, market environment, and industry policies.
Among the companies listed on the Science and Technology Innovation Board, the Growth Enterprise Market and the Beijing Stock Exchange, a total of 109 companies have achieved fund-raising, accounting for close to 30%, but there are also 244 companies that are not raising funds as expected. The biggest difference is the reader culture. The company originally planned to raise 269 million yuan, but it actually raised nearly 62 million yuan, and the issue price was only 1.55 yuan per share.
On the other hand, among the companies with a higher amount of funds raised, there are as many as 25 companies that have more than doubled the over-raising. Among them, the most over-raising multiple is Hemai. The company originally planned to raise 730 million yuan, but in the end it actually raised 55.78. 100 million yuan, its issue price has reached an ultra-high price of 557.80 yuan per share, ranking the highest among new shares in 2021.
The reason for the over-raising of large-scale companies is not only related to corporate qualifications and market sentiment, but also related to the latest new pricing regulations. A reporter from the 21st Century Business Herald noted that most of the A-share companies that have overraised this year are new shares issued after September 2021.
In September 2021, after the emergence of “institutions grouping and lowering prices”, the China Securities Regulatory Commission, Shanghai and Shenzhen Stock Exchanges, and the Securities Industry Association simultaneously issued a series of rules adjustments for issuance and underwriting under the registration system (referred to as the “New Inquiry Regulations”). The new rules for price inquiries, by improving the high price elimination ratio, canceling pricing to break through the “four numbers, whichever is the lowest value”, require delayed issuance, and strengthening the supervision of inquiries and quotation behaviors, promote a balanced game between buyers and sellers, and increase the level of marketization of issuance pricing.
After the implementation of the new inquiries, the final issue prices of many companies exceeded the “lower value of the four numbers” and achieved over-raising.
However, it is worth mentioning that as the issue price of companies has risen, investors’ return on new shares has declined, and the discovery of new stocks on the first day is no longer a novelty in the A-share market.
Wind data shows that since 2021, as of December 27, a total of 18 IPO companies broke their shares on the first day of listing, setting a new high since 2012.
Among them, the most typical is Chengda Bio. The company was greeted by institutions during the inquiry stage. The issue price was as high as 110 yuan per share, and the issue price-earnings ratio was 54.24 times, which exceeded the industry average price-earnings ratio of 38.11 times and more than doubled the funds raised. However, the issue broke quickly on the first day of listing, and the stock price immediately fell 37.5%, making it the new stock with the largest decline on the first day of listing in 2021.
However, in the eyes of many market participants, it is normal for new shares to break on the first day.
Former veteran investment banker Wang Jiyue pointed out: “The revision of the pricing rules is not aimed at low-price offerings, but grouping behavior. Baotuan distorts the market and does not truly reflect the views of inquiry institutions on new stocks. The issue price on the pricing mechanism is still Inquiry agencies dominate, and their bids basically determine the final issuance price. It is normal for an issue to break, but it is abnormal for a risk-free launch.”
Wang Jiyue believes: “Before (new) has been making money, and it is expected that the high quotation will still be profitable; the rapid number of new shares issuance continues to increase, the quotation will be cautious, and the new IPO company will suppress the issuance price; subsequent new shares are unlikely It continues to break, but it won’t always be profitable.”
Pan Helin also pointed out that the new dividend will eventually disappear in the future.
“In essence, before and after the listing of new stocks, only a sum of financing was obtained, and its business logic and fundamentals have not changed. The practice of realizing new gains through short-term speculation is inherently unsustainable. The new market will flow at the beginning of the next year. During the sexual abundance stage, there will be a certain premium, but in the future, the new premium will be flat. For those listed companies with good fundamentals, the new premium will still be high, but for those listed companies with mediocre fundamentals , The premium disappears, and even the opening break will be the norm.” Pan Helin said.
A-share IPO market is expected to continue its prosperity
Looking ahead to 2022, many market participants believe that the A-share IPO market is expected to continue to grow under the support of the rising number of IPOs on the Shanghai Science and Technology Innovation Board, ChiNext and Beijing Stock Exchange.
According to statistics from reporters, as of December 27, a total of 152 companies have been accepted on the Sci-tech Innovation Board but have not yet been registered, and 376 companies have been accepted on the GEM but have not yet been registered. The number of companies in the normal audit status of the Beijing Stock Exchange has reached 55, and another 4 companies have suspended their audits due to various reasons.
Deloitte China Capital Markets Service Department predicts that most of the new shares in the A-share market will come from small and medium-sized manufacturing and technology companies. In 2022, the Shanghai Science and Technology Innovation Board is expected to have 170 to 200 new shares financing 210 to 250 billion yuan; or another 210 to 240 new shares will be listed on the ChiNext to raise 160 to 180 billion yuan. The Shanghai and Shenzhen main boards are expected to have 120 to 150 new shares to raise 200 to 230 billion yuan.
In addition, due to various reasons such as changes in policies and regulations, the upsurge of listing Chinese concept stocks in the United States has significantly cooled down in the second half of the year. Some market participants expect that some projects are expected to flow into the A-share market.
“The first is the full implementation of the registration system, which may lower the threshold for A-share IPOs. The second is the need to further promote the delisting system, capital market stratification and other standardized systems to promote the availability of A-shares and the ability to go up and down. The third is that Chinese concept stocks in US stocks may seek secondary listings in Hong Kong and A shares to avoid potential risks, which will also bring more high-quality listed companies to A shares.” Pan Helin said.
(Author: Yang Ping, Zeng Huixin, Editor: Zhang Yujie)
.