A securities Times reporter received a super-asset-scale purchase data show that private equity has a total of 58,635,300 shares over-allocated. If calculated at yesterdays closing price, the floats and earnings of these shares totaled more than 360 million yuan, of which 240 million were held by China Express. These surpluses will be donated to public welfare organizations after liquidation.
On the evening of July 23, the China Securities Association announced that it had decided to list 29 private equity firms, involving 139 products, that had violated the regulations and oversubscribed their purchases. Among them, the most over-subscribed private equity is forest garden investment, with a total of 32 products; followed by nine chapters of assets, involving 23 products; welcoming investment, involving 18 products.
It is noteworthy that while private equity institutions are punished by the association, all the excess shares in their hands are confiscated.
Private investors disclosed to the Securities Times that their oversubscribed shares had already gone through the transfer formalities. The oversubscribed shares would be transferred to the principal underwriter according to the purchase price. The principal underwriter would sell the oversubscribed shares in the secondary market, and the proceeds of the oversubscribed shares would be donated to the public welfare institutions.
Overallocated shares floated 360 million yuan
On Monday, the companys opening market surged, with both stock growth and turnover rates exceeding market expectations. This has also led to substantial profits for participating institutions and large surpluses in private placement of oversubscribed shares.
The reporter learned from the main underwriter that, on the whole, due to the small scale of private equity over-quota, even many companies have only a few hundred shares, so this will bring little pressure to the market.
According to the published results of offline placement, 56 private equity firms participated in the bidding for shares in KSG, involving about 290 products. This means that about half of private equity and products are over-subscribed.
Why is there a large-scale over-subscription of private equity? According to the industry analysis, according to the new rules of CSIB, there is no need for C-type investors to pay or freeze the new funds under CSIB. Therefore, in order to obtain more quotas and increase the winning rate, many private equity firms apply for more money than their real assets.
Take forestry garden investment as an example, the new stock market value allocated to forestry garden investment is the highest, which is 299 million yuan. If the illegal part is not frozen, the profit on July 22 will reach 300 million yuan. If you sell them all, you can get 60 million yuan if you take a 20% performance commission. A private equity firm in Shenzhen.
Industry insiders said that the illegal over-subscription phenomenon was quickly punished by the regulatory authorities, which sounded the alarm for private equity funds. Regulators are expected to focus on violations in this area in the future.
Private placement is booming
Long-term earnings also depend on stock selection
Thanks to the surge in the first batch of listed STB stocks, many private-equity STB products have made a lot of money. The new strategy of private placement suddenly became hot and attracted great attention of investors.
According to the reporters understanding, many private equity firms have recently made great efforts to promote new products. Due to the outstanding performance of the first batch of innovative products, some products of less than 60 million yuan scale began to seek funds for joint issuance, and some private or even public offerings were launched.