SMIC plans to raise 20 billion yuan to create the most scientific and technological innovation board in 18 days

category:Internet
 SMIC plans to raise 20 billion yuan to create the most scientific and technological innovation board in 18 days


At about 5:00 p.m. on June 19, according to the announcement issued by the municipal Party committee of the Shanghai Stock Exchange on the science and technology innovation board, it agreed to the initial application of SMIC in the science and technology innovation board.

Some analysts believe that with the continuous improvement of relevant system construction, there will be more red chips and zhonggai stocks on the way back.

In the audit, the issues raised by the listing committee to SMIC mainly include the market positioning and future application prospects of more advanced process products such as 14nm and 28nm, whether the orders in hand of 28nm process wafer foundry constitute loss orders, and whether the relevant losses are expected.

Looking back on SMICs road of breaking through the scientific and technological innovation board, it only took 45 days from the date of official announcement to the companys meeting.

On June 1, the companys application for listing on science and technology innovation board was accepted by Shanghai Stock Exchange. On the evening of June 7, SMIC replied to the first round of questions, totaling 29. On June 10, three days later, the company received the notice of the meeting from the municipal Party Committee on the science and technology innovation board.

According to the prospectus issued by SMIC international science and technology innovation board, the company plans to raise 20 billion yuan this time, which is the most IPO raised in science and technology innovation board in more than one year since its opening. The second largest IPO is the first batch of China commas listed on science and Technology Innovation Board last year, with an IPO raised amount of 10.5 billion yuan.

Public information shows that SMIC was founded in 2000 and provides 0.35 u03bc m to 14 nm wafer foundry and technical services to global customers. In 2019, SMIC accounted for about 4.87% of the global wafer foundry market, ranking fifth in the world. After 2010, the company strategically abandoned memory production and mainly produced logic chips.

According to the analysis of Shenwan Hongyuan electronic team, from the perspective of the global wafer foundry industry, TSMC is at least one to two years ahead of its peers in advanced process nodes, and its market share has been more than 50% all the year since 2014. In the second tier, Samsung and grofangde accounted for only about 10% of the market, while SMIC international accounted for about 5% for a long time. With the entry of the later stage of Moores law, the marginal cost of process upgrading continues to increase, and the number of participants in the advanced process track has been greatly reduced. There are 29 Fabs with 180nm process capacity, and only 6 with 14nm mass production capacity. Currently, only TSMC, Samsung and Intel are still in the main arena of advanced process. With the withdrawal of United Power and grofangde, SMIC is the only advanced process challenger.

The return of red chips is heating up

For SMICs return to A-share this time, industrial securities analysis believes that SMICs second listing on the science and technology innovation board this time, compared with the additional issuance on the Hong Kong stock market, or the privatization or spin off asset listing in China, the additional issuance on the science and technology innovation board has a relatively small impact on the existing shareholders equity, and has more room to improve the valuation, which is in line with the common interests of the company and investors.

Guangfa Securities strategy team believes that SMIC has opened up a new path of a + H after the return of China concept shares to H shares; in addition, it has previously relaxed the threshold of market value for the return of red chips to 20 billion yuan and the notice on matters related to the application of red chip enterprises for the issuance and listing of science and Technology Innovation Board issued by Shanghai Stock Exchange on June 5, which provides a system basis for the return of red chips to science and technology innovation board.

Coincidentally, on the eve of SMIC International Conference, Geely Automobile, listed on Hong Kong stock market, released its intention to list on science and technology innovation board.

On the evening of June 17, Geely Automobile issued a notice saying that the board of directors approved the preliminary proposal for the possible issuance of RMB shares and the listing on the science and technology innovation board. The number of a shares to be issued by the company will not exceed 15% of the total issued share capital.

Like SMIC, Geely Automobile is also a red chip stock registered in the Cayman Islands. If it can land on the science and technology innovation board, it will realize the secondary listing of a shares.

Turning to the significance of the return of red chips for the science and technology innovation board, Liu Ti, deputy general manager of the Shanghai Stock Exchange, said on the evening of June 18: the core of the science and technology innovation board is two goals, one is to promote the listing of science and technology innovation enterprises, better serve science and technology innovation enterprises, and promote the cause of science and technology innovation in China; the other is to continue to improve the basic system of the capital market as a pilot field for the reform of the capital market, so as to recover from other sectors System promotion to form replicable and generalizable experience. In essence, allowing red chips to be listed on the science and technology innovation board is also the content of serving science and technology innovation. Many enterprises, especially those in the new economy, adopt the red chip structure. If we cant contain this, the radiation of science and technology innovation board serving science and technology enterprises may not be enough.

In addition, the return of red chips and Zhongwei shares has also brought investment banking opportunities to domestic securities companies. If calculated at 1.5% underwriting and recommendation rate, the underwriting and recommendation fee cake of SMICs IPO in the science and Technology Innovation Board will reach 300 million yuan, and there will be six securities companies participating in cake distribution. According to the prospectus, the A-share IPO of SMIC consists of Haitong Securities, two joint sponsors (lead underwriters) of CICC, and four joint lead underwriters (Guotai Junan, CSCI, Guokai securities and Morgan Stanley Huaxin).

Photo source: Photo net