IPO refinancing Qi SHANGZHAN securities company opens a new round of blood replenishing

category:Finance
 IPO refinancing Qi SHANGZHAN securities company opens a new round of blood replenishing


According to the announcement, CICC plans to issue no more than 459 million a shares to the public (that is, no more than 9.5% of the total share capital after A-share issuance and listing). After deducting the issuing expenses, all the funds raised from the A-share issuance and listing of CICC will be used to increase the capital of the company, supplement the working capital of the company, and support the development of the companys domestic and foreign businesses.

According to the data, CICC was founded on June 25, 1995 and is the first Sino foreign joint investment bank in mainland China. It was listed on the main board of Hong Kong Stock Exchange on November 9, 2015.

At the beginning of its establishment, CICC focused on high-end investment banking business, and had almost contracted the listing and overseas business of large domestic state-owned enterprises. However, with the listing of large state-owned enterprises exhausted and the fierce competition accelerated by the transformation of securities companies, CICC once experienced pain and its performance turned weak. In recent years, CICC has introduced Tencent and Alibaba to join in and promoted business transformation with the help of financial technology. In September 2019, Tencent set up a joint venture technology company.

CICC has made a long-term plan to return to A-share market. The main domestic top securities companies have basically listed in A-share, only CICC listed in Hong Kong stock, which is not conducive to the promotion of CICCs status and influence in China. At the same time, the valuation of domestic securities companies is significantly higher than that of Hong Kong stocks, especially once A-share bull market comes, the valuation of securities companies will rise rapidly. For CICC, the return of a shares can improve the share price and market value of the company, which can bring obvious wealth effect to shareholders. When it comes to CICCs choice to return to a shares, an analyst at a securities firm in Shanghai told Beijing business daily.

Acceleration of equity financing of securities companies

With the constant release of the dividend of capital market reform, the securities companies are setting off a war of capital expansion. Recently, there are new developments in IPO and refinancing of securities companies. On February 26, BOC securities was successfully listed on the Shanghai Stock Exchange, becoming the 37th listed A-share securities firm. On the first day of listing, BOC securities performed well, with IPO price of 5.47 yuan / share, which was closed at 44.06% on the first day of listing, and then the stock price rose in successive days, and as of February 28, the closing price was 9.54 yuan / share.

According to the prospectus disclosure, the raised funds of BOC securities will mainly be invested in eight fields, including investment banking business, retail brokerage business, asset management business, securities investment business, private equity investment business, futures business, research and institutional business, risk control compliance and information technology.

In terms of refinancing of A-share market, since the new refinancing regulation official announcement, the market vitality has been further stimulated. On February 25, Haitong Securities issued a revised plan for fixed increase, indicating that its refinancing plan will go further.

Domestic refinancing continues to be liberalized, and many top securities companies have issued refinancing plans to consolidate capital strength, which has also objectively put a great pressure on CICC, urging CICC to make a quick decision to return to A-share, so as to simultaneously strengthen the improvement of capital strength. He Nanye, a broker investment banking practitioner, told Beijing business daily.

Launch heavy capital business

At present, capital is increasingly becoming an important factor affecting the competitiveness of securities companies. Securities companies also have many ways to replenish blood and consolidate capital strength.

According to wind data, as of March 1, there were 11 securities companies such as CAIDA securities and Guolian securities queuing up under the normal IPO review status. In terms of refinancing blood replenishing, wind data shows that at present, the fixed increase plan of eight securities companies, including Haitong Securities and CSCI, has not yet been implemented, and the proposed fund raising is 85.96 billion yuan. In addition, five securities companies, including Tianfeng securities and Soochow securities, have yet to implement their share allotment plans, and they plan to raise 38.805 billion yuan. From the perspective of fund-raising purposes of securities companies, most of them point to replenishing the companys funds and expanding business scale. Among them, the development of heavy capital business such as capital intermediary and investment transaction has become the key investment direction of securities companies. Industry insiders believe that in the industry trend of strong performance differentiation, securities companies continue to supplement capital and expand the scale of assets is the general trend. For the head securities companies, how to make full use of policy space, strengthen capital strength and rapid transformation, and stabilize their industry status is a top priority. For the small and medium-sized securities companies, how to enrich net capital as soon as possible and get more development space has become an urgent task. Source: editor in charge of Beijing Business Daily: Guo Chenqi ufe63 nbj9931

According to wind data, as of March 1, there were 11 securities companies such as CAIDA securities and Guolian securities queuing up under the normal IPO review status. In terms of refinancing blood replenishing, wind data shows that at present, the fixed increase plan of eight securities companies, including Haitong Securities and CSCI, has not yet been implemented, and the proposed fund raising is 85.96 billion yuan. In addition, five securities companies, including Tianfeng securities and Soochow securities, have yet to implement their share allotment plans, and they plan to raise 38.805 billion yuan. From the perspective of fund-raising purposes of securities companies, most of them point to replenishing the companys funds and expanding business scale. Among them, the development of heavy capital business such as capital intermediary and investment transaction has become the key investment direction of securities companies.

Industry insiders believe that in the industry trend of strong performance differentiation, securities companies continue to supplement capital and expand the scale of assets is the general trend. For the head securities companies, how to make full use of policy space, strengthen capital strength and rapid transformation, and stabilize their industry status is a top priority. For the small and medium-sized securities companies, how to enrich net capital as soon as possible and get more development space has become an urgent task.