Home » The performance of IPO projects frequently changes. Guoyuan Securities is questioned. Investment banks dispute the “gatekeeper” boundary of intermediary agencies.

The performance of IPO projects frequently changes. Guoyuan Securities is questioned. Investment banks dispute the “gatekeeper” boundary of intermediary agencies.

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Original title: The performance of IPO projects frequently changes. Guoyuan Securities is questioned. Investment bankers dispute the “gatekeeper” boundary of intermediary agencies.

21st Century Business Herald reporter Wang Yuanyuan reports from Shanghai

Guoyuan Securities has recently received public attention due to the repeated decline in performance of sponsored listing projects that year after listing.

According to media reports, in 2020, Guoyuan Securities sponsored 9 A-share listed companies, of which 5 companies experienced a decline in performance that year; in the past three years, Guoyuan Securities sponsored 12 companies for A-share IPO listings, 7 of them There was a decline in performance that year.

As the company’s performance declines, it is the shareholders who bought shares before the IPO that cash in high positions. Among them, there is no shortage of Guoyuan Securities’ controlling shareholder Anhui Guoyuan Financial Holdings Group, and its separately established investment subsidiary has made huge profits in the listing projects sponsored by Guoyuan Securities.

The above operation was questioned by the media as having an obscure chain of interests.

In the context of the registration system, the regulatory authorities have constantly emphasized the need to consolidate the “gatekeeper” responsibilities of the capital market securities intermediary agencies, so is there any problem with the above operations of Guoyuan Securities? How do people in the industry view such issues?

The quality of the sponsored project was questioned, Guoyuan once received a fine for “not diligently and due diligence”

According to Wind data, in 2020, Guoyuan Securities, as the lead underwriter, will guide the listing of projects on the Main Board, ChiNext and Science and Technology Innovation Board, including: Long Magnetic Technology, Kewell, Huaye Spice, Tongqing Building, National Shield Quantum, Pakistan Than Food, Tongyuan Environment, Sijin Intelligence, Chenguang New Materials.

As of the close of December 10, the share prices of 4 of the 9 companies mentioned above showed a larger retracement compared with the share prices during the initial listing period, indicating that the capital market may not be optimistic about their fundamentals. These 4 companies They are: Huaye Spices, Tongqing Building, National Shield Quantum, and Tongyuan Environment.

Among them, the three companies of Huaye Spices, National Shield Quantum, and Tongyuan Environment have not been recommended by brokerage analysts in the secondary market so far.

In particular, Huaye Perfume once asked the sponsor of Guoyuan Securities to accept the fine during the listing process.

In April 2017, the Anhui Securities Regulatory Bureau issued a warning letter to the two sponsor representatives of Huaye Perfume because the due diligence on the issuer’s connected transactions was not in place and the duty of due diligence was not fully performed.

The main market of this chemical company, which is mainly engaged in fragrance business, is the delivery of raw materials to cosmetics. The company submitted a listing application draft to the China Securities Regulatory Commission as early as 2016, and the sponsor is Guoyuan Securities. At that time, this company was also reported by local residents because of the pungent smell of exhaust gas from the production process, which affected the normal life of local residents for several years.

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The company also mentioned in the first version of the prospectus that it may face environmental protection policy risks, that is, the company’s synthetic fragrance production process involves chemical reactions, which will produce certain pollutant emissions and noise such as waste water, exhaust gas, and solid waste. As the country’s requirements for environmental protection become more stringent and the society’s awareness of environmental protection continues to increase, the state and local governments may promulgate new laws and regulations in the future to improve environmental protection standards and increase environmental pollution control costs, resulting in higher company production and operating costs. Affect the level of income.

Then two investment bank sponsors in the company’s listing process were issued warning letters by the Anhui Securities Regulatory Bureau in 2017.

In 2019, Huaye Fragrances resubmitted the listing application draft and will finally be listed in 2020.

In this version of the prospectus, when the company explained that its operating income in 2019 was significantly lower than that in 2018, or even greater than that of its peers, it was also said that it was mainly due to the company’s production equipment transformation in accordance with the requirements of the national environmental protection policy and related documents, and the suspension of production was longer.

Since its listing, the growth rate of the net profit attributable to the parent company of Huaye Spices has continued to decline, and the decline has continued to expand. Its stock price has also fallen from the highest value of 76.69 yuan per share at the time of listing to the recent lowest of 23.46 yuan per share, which is greatly discounted.

According to the Shanghai Securities News, in the past 10 years, in the IPO projects sponsored by Guoyuan Securities, there have even been cases of declining performance for three consecutive years after listing, such as Huangshan Capsules listed in 2016 and Yingliu shares listed in 2014. , Star cable listed in 2012, etc.

In addition, some listed companies sponsored by Guoyuan Securities eventually chose to sell shells due to the sluggish main business. For example, Shunrong shares, which went public in 2011, experienced three consecutive years of performance decline after listing, and shells turned into Sanqi Mutual Entertainment. Similarly, Jiangsu Sanyou made the shell healthy in Meinian, Xinhai shares sold shells to Yunda shares, and Dingtai New Materials sold shells to SF Holdings…

The above-mentioned cases all reflect that in the history of Guoyuan Securities and up to now, many listed projects sponsored by Guoyuan Securities, the fundamentals and quality of the company itself are not good.

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Some investment bankers believe that in the context of the new capital market development, the aforementioned Guoyuan Securities phenomenon may not be rare.

“Under the background of the registration system, whether the intermediary agency or the supervisory authority, they will emphasize trust and disregard the audit. The key point for securities firms is to ensure the authenticity, accuracy, and completeness of the information disclosed by listed companies, and comply with the rules. , Meet the listing conditions. Performance must be handed over to the issuer; stock price is handed over to the market.” A source from a brokerage investment bank said.

“At present, brokerage intermediaries still have to assume certain responsibilities for the quality control of listed projects, but the general trend is that the responsibilities of brokerage intermediaries are gradually shifting from identifying the quality of the project to a more rigorous, comprehensive, in-depth and precise direction.” The investment bank source said.

It said that the market will directly link the brokerage intermediary to the quality of the project before. The quality of the listed company is not good. Everyone will naturally think that the brokerage intermediary has not fulfilled its responsibilities; but under the background of the registration system, the responsibility boundary of the brokerage intermediary for the project will be greater. It’s becoming clearer that one cannot simply link the quality of a project with the due diligence of the investment bank.

Major shareholders profit from the IPO project?Brokers’ follow-up investment restrictions or gradually liberalized

While the quality of Guoyuan Securities’ sponsored listing projects is being questioned, its major shareholder, Anhui Guoyuan Financial Holding Group Co., Ltd. (“Guoyuan Financial Holdings”), has profited by participating in sponsored IPO projects in advance, which has also attracted attention.

Guoyuan Financial Holdings established platforms such as Anhui Guoyuan Venture Capital Co., Ltd. (“Guoyuan Venture Capital”), Anhui Hongbo Capital Management Co., Ltd. (“Hongbo Capital”), and entered the IPO project guided by Guoyuan Securities in advance Make investment and realize a good return afterwards.

According to media reports, in the listing project of Huaye Spices, on December 6, its announcement on the progress of its shareholding reduction showed that Guoyuan Ventures had reduced its holdings of 175,000 shares of the company through centralized bidding, with an average price of 24.68. Yuan/share.

According to public data, Guoyuan Venture Capital invested in Huaye Spices through capital increase in 2015, and acquired 3 million shares at 7.20 yuan per share. Huaye Perfume will be listed in 2020. In April of this year, the dividend will be increased. Guoyuan Venture Capital’s shareholding increased to 3.9 million shares, and the cost was diluted to 5.39 yuan per share. Compared with the average price reduction this time, Guoyuan Ventures’ yield is close to 360%.

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At the same time, as an affiliate of Guoyuan Securities, Guoyuan Venture Capital “stepped on” a stake in Huaye Perfume before the sponsorship officially began. Public information shows that on September 17, 2015, Guoyuan Ventures acquired 3 million shares of Huaye Perfume with a capital increase of 21.6 million yuan. On June 22, 2016, Huaye Perfumery submitted its IPO application draft for the first time.

In addition, Guoyuan Ventures also invested in the “hot project” Guoyuan Quantum, and obtained 220,000 shares before listing. Guoyuan Securities is also the sponsor of Guoyuan Quantum.

These actions are questioned by the media whether there is a hidden chain of interest.

“It’s not a very unexpected thing. This style of play has long existed. The most representative ones are China National Financial Securities and Yongjin Group.” The aforementioned investment banker said.

“The current terms allow brokerages and their affiliates to’invest before insurance’, that is to say, invest first, and then insurance do not allow’insured before investment’. It just means that securities dealers and securities dealers’ controlling shareholders and actual controllers cannot hold There are issuers with more than 7% of the shares.” The above-mentioned investment bank sources said.

“Supervision gives securities firms the right to follow-up investment, and even implements their obligation to follow-up investment. For example, the Science and Technology Innovation Board requires sponsors to follow-up investment. Review. The latest CBEX system has also liberalized the’insurance before investment’, clearly indicating that it can be’sponsor first, then direct investment’.” The investment banker said.

He said that from the above policies, we can read a trend that supervision is gradually relaxing restrictions on sponsors’ investment in companies that are to be listed. As for whether this “opening up” is beneficial or not, there are controversial voices in the market, but the supervisory authority must have discussed and concluded before the introduction of the sci-tech innovation board follow-up investment system and the Beijing Stock Exchange system, otherwise it will not gradually release it. open.

“Previously, the audit system locked 23 times the issue price, and early investment was a stable and profitable business. But now with the promotion of the registration system, the overall price-earnings ratio has fallen. It can only be sold when the listing lock-up period expires. Follow-up investment may not be profitable. Supervision is happy to see brokerages or related parties as the follow-up shareholders of the project, consistent with the interests of shareholders.” The aforementioned investment banker said.

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