In 2019, the IPO revenue of sponsor doubled year on year, and three middle schools ranked the top

category:Finance
 In 2019, the IPO revenue of sponsor doubled year on year, and three middle schools ranked the top


Important increment of IPO revenue of science and Technology Innovation Board

2019 is the year for regulators to promote IPO normalization. A total of 276 (Times) enterprises (including science and technology innovation board) have been audited in the whole year, 247 of which have passed the meeting, with a passing rate of 89.49%, nearly 30 percentage points higher than that in 2018.

In July 2019, the science and technology innovation board officially opened for trading became an important increment of the capital market. The IPO performance of investment banks in the whole year benefited from the science and technology innovation board. 70 science and technology innovation board enterprises that completed listing in the year contributed 4.75 billion yuan of underwriting and recommendation expenses to the sponsor, accounting for 43% of the annual IPO revenue.

In general, there are 26 securities companies with IPO revenue of over 100 million in the year, with the top 10 accounting for 61% of the market share, and the industry concentration is slightly lower than that in 2018. In 2019, the biggest winner of IPO revenue is CITIC Securities, which has an initial revenue of 1.424 billion yuan, accounting for 12.94% of the market share; the initial revenue of CICC and CSC securities exceeds 900 million yuan, ranking second and third; the initial revenue of GF Securities and Guoxin Securities exceeds 600 million yuan, ranking among the top five.

Specifically, in 2019, CITIC Securities participated in the IPO underwriting of 28 enterprises, of which Baofeng energy IPO project received rmb119 million of underwriting and recommendation fees for a single IPO; science and technology innovation board projects such as Chuanyin holding, Baichu electronics and rongbai technology contributed more than 80 million yuan of underwriting and recommendation fees for CITIC securities.

CICC participated in the IPO underwriting of 18 enterprises, of which Jinshan office landed on the science and technology innovation board project contributed 150 million yuan of underwriting and recommendation expenses to CICC; CICC also underwritten the IPO issuance of postal savings bank together with four securities companies such as China Post securities, and served as a joint recommendation agency, in which the underwriting agency shared 463 million yuan of underwriting and recommendation revenue.

IPO passing rate of 31 securities companies is 100%

According to choice data statistics, in 2019, a total of 202 enterprises completed IPO, with actual fundraising of 253248 million yuan, an increase of 80% compared with 2018. In that year, four enterprises raised more than 10 billion yuan in initial public offering, of which postal savings bank raised 32.7 billion yuan after adopting the green shoes mechanism, which was the IPO project with the highest fundraising amount last year. The fundraising amount of Zheshang Bank, China Guanghe and China Telecom exceeded 10 billion yuan.

In terms of the number of IPOs, the three middle schools ranked first, with CICC holding 26 IPOs, ranking first; CSC holding 25, ranking second; CSC holding 20, ranking third; GF Securities, China Merchants Securities, Minsheng securities, Guoxin Securities, Everbright Securities, Dongxing securities, Guotai Junan holding more than 10 (including 10), Top 10.

Huatai United Securities, which originally belonged to the first echelon, was underperforming in 2019, ranking 12th in the industry with eight IPO projects.

From the perspective of meeting passing rate, 31 securities companies have successfully passed the meeting, including China Merchants Securities, Minsheng securities, Guotai Junan, Dongxing securities and more than 10 (including 10), maintaining a 100% meeting passing rate, which is precious; securities companies such as Guojin, Xingye, Anxin, Huaxi and Xibu have also achieved 100% IPO meeting passing rate in 2019.

The data reflects the efforts of some small and medium-sized investment banks to improve the quality of recommendation and achieve results. In 2019, the first venture underwriting and recommendation, Yingda securities, Huafu securities, Cinda securities, China Post securities, Huajing securities, etc. all had successful projects, achieving a zero breakthrough in the past three years.

Projects under review led by CSCI

The projects under review largely represent next years performance. In terms of the projects under review (including the stages of acceptance, feedback, pre disclosure and update, passing the development and review meeting, etc.), at present, there are 435 IPO projects (excluding science and technology innovation board projects) of various securities companies under review.

It is worth mentioning that on January 6, the IPO project of Beijing Shanghai high-speed railway, with CSC acting as the sponsor and underwriter, will start to make innovations, with a total initial capital raising of 30.675 billion yuan. It can be predicted that this project will make a great contribution to the performance of investment banks, and will also become a bright color of the IPO business of CSC in 2020.

CITIC Securities, Minsheng securities, China Merchants Securities, Guojin securities, Guangfa Securities and CICC all have more than 20 projects under review, ranking in the top seven. Minsheng securities IPO is among the top three in the industry in terms of the number of projects under review. 11 projects have been disclosed and updated in advance, 6 projects have been fed back, and 4 projects have been accepted. It can be predicted that this medium-sized securities firm will have achieved a successful IPO in 2020 or become a black horse in the industry.

On March 1, 2020, the new securities law will come into effect, and the registration system will be fully implemented in Chinas securities market, and the IEC will be cancelled. Will this affect the project progress of these sponsors? The head of an investment bank of a securities firm said that the progress of the project should not be affected. These projects under review may face two audit methods: one is new and old plan, and the projects under review will be audited by the development and Audit Committee; the other is to follow the registration system method of science and technology innovation board, which is first audited by the exchange, then audited by the listing committee, which is similar to the audit system in nature, and finally submitted to the CSRC to perform the registration procedure. Cao Fengqi, a professor at Peking University who participated in the drafting of the securities law, believes that the system of China Development and Audit Commission has been implemented for 26 years, and a transition period is needed from the audit system to the registration system. One of the reasons is that the relationship between the CSRC and the exchange is not straightened out at present, and the registration system may be extended to the gem first, and then to the whole market slowly. Source: responsible editor of Securities Times: Yang bin_nf4368

On March 1, 2020, the new securities law will come into effect, and the registration system will be fully implemented in Chinas securities market, and the IEC will be cancelled. Will this affect the project progress of these sponsors? The head of an investment bank of a securities firm said that the progress of the project should not be affected. These projects under review may face two audit methods: one is new and old plan, and the projects under review will be audited by the development and Audit Committee; the other is to follow the registration system method of science and technology innovation board, which is first audited by the exchange, then audited by the listing committee, which is similar to the audit system in nature, and finally submitted to the CSRC to perform the registration procedure.

Cao Fengqi, a professor at Peking University who participated in the drafting of the securities law, believes that the system of China Development and Audit Commission has been implemented for 26 years, and a transition period is needed from the audit system to the registration system. One of the reasons is that the relationship between the CSRC and the exchange is not straightened out at present, and the registration system may be extended to the gem first, and then to the whole market slowly.