Kechuang Ban continues to advance at a high speed. As of June 12, six enterprises have passed the examination and approval of the SCM Listing Committee. The next most important step is to make inquiries and fix prices.
Under the registration system, the company cancelled the direct pricing and completely adopted the market-oriented inquiry mode. The SFC has effective constraints on market-oriented inquiry subjects, pricing and distribution mechanism.
Nevertheless, there are different opinions on the valuation and pricing of the first batch of companies to be listed. For example, Qin Peijing, Chief Analyst of CITIC Securities Strategy, predicts that the issuance pricing of Kechuang will be systematically high; but He Yu, a partner in Jiuyou Capital Management, believes that even in the first batch, the issuance pricing will be within a reasonable range.
In contrast, the more consistent view is that the industry basically believes that the first batch of science and technology board listed after the probability of speculation is larger. Under the unbalanced supply-demand relationship, it is expected that the first day of the start of the board will be heightened by speculation, but within five trading days it will fall back. Qin Peijing said.
Unlike the approval system, under the registration system, Kechuang cancelled the original A-share pricing and adopted a comprehensive market-oriented inquiry system for all new shares. The inquiry process is similar to the current A shares.
On the subject of inquiry, the object of inquiry for A-share issuance under the approval system includes individuals. However, KSB has higher requirements on investorsinvestment experience and risk tolerance, so the inquiry object is limited to seven types of professional institutional investors such as securities companies and fund companies, and these institutions are allowed to fill in no more than three files of the proposed purchase price for the different allocation objects managed by them.
In order to promote prudent quotation of off-line investors, relevant policies also stipulate that the highest part of the total amount of bidding is excluded after the quotation, and require disclosure of the median and average of the effective quotation after excluding the highest part of the quotation, as well as the median and average of the quotation of the main long-term investors in the three types of markets before the online bidding.
In the distribution link, Kechuang board has increased the proportion of offline distribution, increased the proportion of offline initial issuance by 10%, and reduced the strength of offline initial issuance to online callback. After callback, the proportion of offline issuance will be no less than 60%.
Sun Jinju, director of the New Age Securities Research Institute, said that the higher proportion of off-line subscriptions of the Science and Technology Innovation Board was used to strengthen the pricing constraints of off-line investors and guide investors to participate rationally. At the same time, KSB also stipulates the upper limit of 80% offline issuance after callback, which guarantees the proportion of small and medium-sized investors on the Internet.
In addition, Kechuang adopted a strategic placement mechanism, which lowered the threshold of strategic placement, and the limited period was longer than that of U.S. and Hong Kong stocks. The introduction of green shoes mechanism ensures the stability of stock prices. The introduction of follow-up and investment system of subsidiaries related to sponsor agencies in KSB also enhances the constraints on underwriters and promotes more reasonable and prudent pricing by sponsor agencies.
The reform of science and technology innovation board is very vigorous, so it is necessary to ensure stable operation in the process. Now these constraints are also in order to effectively and smoothly transition to market pricing. On June 12, He Xu told reporters. Jiuyou Capital launched two hard technology industry funds at the end of 2018, focusing on the investment of high-quality projects in the early and middle stages of scientific and technological enterprises.
The First Batch of EnterprisesPricing Debate
Despite the constraints imposed on Pricing in many sectors, the constraints may still be limited. There are also different opinions on the issuance pricing of the first batch of Companies in the industry.
Qin Peijing predicts that the issuance pricing of Kechuang board will be systematically high. When investors generally believe that new shares of CSIB will be speculated in the secondary market because of the scarcity of initial supply, under the rules of determining effective quotation of CSIB, in order to improve the probability of allocation, the best strategy for new participants to make unanimous expectations online is to raise the quotation appropriately on the basis of reasonable valuation, so it is expected that the quotation range will move up systematically and the issuance price will be on the high side.
However, He Xu believes that the issuance pricing of the first batch of science and Technology Board will be relatively reasonable. In fact, many enterprises communicate with the main underwriter about pricing before listing. Whether the pricing is fair and reasonable, whether the secondary market will accept it or not, and also with institutional investors offline, so the final issue price or price range must be approved by institutional investors.
He Xu said that a large proportion of KSG are institutional investors, with a limited sales period. For these organizations, there is a fair price at the start so that they can make money in the future. If the value report provided by the securities firm is unreasonable, the institutional investors do not approve it, and the final issuance is likely to fail.
The value investment report provided by the principal underwriter is of reference significance to the pricing of institutions. Even if the valuation is higher than that of Hong Kong and US stocks, as long as institutional investors accept it, the price is reasonable and market-oriented. There are valuation methods for GEM enterprises, but it should be noted that each enterprise has different characteristics, which should be considered in the pricing. He Yu told reporters.
CITIC Construction Investment also believes that the initial pricing of the company will not be too high. Institutions participating in the inquiry are more motivated to lower the quotation and improve their own level of benefit under the incentive of anticipated new earnings. Second, issuers and principal underwriters have real pricing power, and regulators have been concerned about the problem of high valuation in the first-class market of KGEM. Ding Luming, chief analyst of CITICs financial engineering, said.
Despite differences in issuance pricing, almost all of these institutions expect that the probability will be stirred up after the launch of the KIB board.
Qin Peijing predicts that under the unbalanced supply-demand relationship, it is expected that the first day of Kechuang board opening will be heightened by speculation, but within five trading days it will fall. The game between sellers will be more intense after the listing of new shares in KSCM than under the original approval system. The optimal strategy will change fromsell-as-you-gotolock in earnings as soon as possible, so that the possibility of continued speculation of new shares in KSCM is much lower than that of the original GEM.
Ding Luming believes that the initial listing of shares in the GEM will overdraw future earnings; the first five trading dates do not set a limit on the rise and fall, and add a premium. Under the influence of emotions, the first batch of listed stocks is likely to reproduce the trend of the first batch of stocks in the GEM, and the degree of overdraft may be higher.
The first batch of companies listed on the Kechuang board have been sought after, which is also a normal capital market phenomenon. After a period of time, it will return to reason. If there are long-term institutional investors, the range of callbacks may be limited. In particular, some institutional investors who adhere to the long-term investment concept will play a very good role in stabilizing stock prices. He Yu is called.
If the initial pricing of KSCM is high and the break-out rate is significantly higher than that of A shares under the approval system after one month of listing, then the online inquiry agencies will adjust the inquiry strategy in time, and the valuation range of effective quotation will gradually return to rationality. Individual investors will be more calm in the process of participating in investment, and KSCM will re-enter the benign development channel. Qin Peijing said.
Source: Yang Qian_NF4425, Responsible Editor of Economic Report in the 21st Century