The direct reason behind the repeated adjustment of the refinancing plan is the loosening of the refinancing policy by the CSRC. After China Securities Regulatory Commission (CSRC) issued the revised refinancing system in early November for comments, the refinancing of listed companies has repeatedly changed.
As the major means of refinancing, allotment of shares, fixed increase and convertible bonds are mutually replaceable and highly concerned by the market. Will the scale of convertible bond financing be squeezed to a certain extent after the fixed increase market becomes hot again?
When we communicate with some companies, they see the new refinancing regulations, especially the relaxation of the fixed increase provisions, and hope to know more about the smooth degree of the fixed increase issuance. But a large proportion of companies, I dont think, have made a decision yet. They need further comparative study. Yu Jingwei, chief analyst of large asset allocation of CITIC Securities Research Department, told the first financial reporter.
Many companies are moving
Digital Zhengtong (300075. SZ) said in the evening of November 22 that, in view of changes in the market environment, the company terminated the non-public offering of shares in July this year and decided to launch a new non-public offering.
According to the new plan, the company plans to issue shares to no more than five issuers, raise no more than 600 million yuan, and invest in multiple projects such as the construction of intelligent urban comprehensive management service platform. According to the original plan, the company plans to issue no more than 450 million yuan of non-public shares to hi tech investment and Juxin No.2 to supplement the working capital.
On November 8, China Securities Regulatory Commission (CSRC) solicited public opinions on the amendment of refinancing rules such as the detailed rules for the implementation of the shares of Listed Companies in non-public development banks, and proposed to revise the refinancing rules in terms of streamlining the issuance conditions, appropriately extending the validity period of the approval documents and facilitating the listed companies to choose the issuance window and other aspects of optimizing the arrangement of the non-public issuance system, so that the refinancing could be released.
Specifically, the content of the refinancing policy gift package is quite abundant. For example, some adjustments have been made to the previous restrictions affecting fixed increase: the issuance price of non-public shares of listed companies has been adjusted from no less than 90% of the average price of the companys shares in the first 20 trading days before the pricing benchmark date to 80%. At the same time, the lock-in mechanism of non-public offering is adjusted in time, and it is clearly stipulated that its reduction is not applicable to the restriction of reduction rules.
Yu Jingwei believes that in the draft, the relaxation of the fixed increase rules is large, including the lock-in period, the pricing rules, the number of people raised, and the requirement of leverage ratio for some relevant qualifications.
But on the other hand, some conditions have been further tightened. For example, in the past, in many cases, the fixed increase of shareholders was allowed to cover the bottom. In the past, only issuers were forbidden to cover the bottom, but now even large shareholders are also forbidden to cover the bottom. This will also lead to the change of demand in the fixed increase market. He mentioned.
Limited impact on convertible bonds
At the same time, the industry believes that the return of fixed increase will squeeze the rapid expansion of convertible bond financing since 2017.
Changjiang Securities Research Institute pointed out that in February 2017, the tightening of rules related to refinancing and reducing holdings led to the rapid contraction of fixed increase scale; thanks to the alternative relationship with fixed increase financing, the convertible bond financing has expanded rapidly since then. The draft has some adjustments in fixed issue pricing and reduction of holdings. If relevant measures are implemented, it may squeeze the financing of convertible bonds to some extent.
We recently talked with some companies that have issued too many convertible bonds, and they will probably give priority to issuing convertible bonds, because this is also one of the few ways for them to choose. Yu Jingwei said.
How does the deregulation of refinancing impact the convertible bond market? Yu Jingwei mentioned that it needs to be analyzed according to the companys qualification.
Before, there were some companies that could not issue fixed increase bonds, so they would issue convertible bonds. These companies may return to the fixed increase market. The main difficulty of fixed increase is still issuance. He thought.
He further said that for some companies that need debt operation or leverage operation, while ROE (return on net assets) needs to be guaranteed, to reduce financing costs, this type of companies may choose convertible bond issuance, but companies with large financing scale and rapid growth may prefer fixed increase.
From the perspective of time cycle, Yu Jingwei believes that at present, the revision of the new refinancing regulations is still in the draft stage, and the impact on convertible bonds is not expected to be very obvious in the next six months, which may be reflected in the first and second quarters of next year.
Source: First Financial Editor: Guo Chenqi, nbj9931