Why does the Foxconn IPO delay the approval? The amount of money raising needs to be shrinking

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 Why does the Foxconn IPO delay the approval? The amount of money raising needs to be shrinking


The first reason why the company took the lead in getting the IPO approval is largely due to its discount listing, which means the size of the fund-raising fund has shrunk dramatically. In April 16th, the initial open issue stock inquiries and announcements revealed by drug Ming Kang on the Shanghai Stock Exchange website showed that the number of IPO issuance was not more than 104 million shares, and the amount of raised funds was expected to be 2 billion 130 million yuan, 63% compared with the 5 billion 741 million yuan previously disclosed by the company, and the project was also reduced to 4 from 10. According to the initial collection of 5 billion 740 million 579 thousand yuan and the number of 104 million 198 thousand and 600 shares in the new stock, the price of drug Ming Kang will reach 55.09 yuan, and the price earnings ratio will soar to about 50 times. However, after the reduction in the scale of the fund raising, the price earnings ratio will be reduced to about 22.99 times, and it will be less than 23 times the price earnings ratio below the red line. Wuxi fund-raising scale has shrunk dramatically, there will be some important influence on the market: The unicorn, despite the listed IPO fast track, but there is no lion expensive issue sword. Previously, the market questioned Wuxi as the unicorn to raise funds too much, issue price earnings ratio is too high. After the meeting of IPO after the meeting, he finally reduced the size of the fund-raising fund and determined the issue price according to the 23 times earnings ratio red line. This will undoubtedly set a benchmark for the subsequent unicorns listing. Second, Foxconn, Ningde and other unicorns, such as other unicorns fund raising scale will be a big probability event, the regulatory layer will be in the new economic IPO and market stability between the maximum balance, can not allow a large number of Big Mac airborne A shares hit the pit. Since the beginning of 2018, the average size of new stocks has averaged about 1 billion 90 million yuan. In February 5th this year, the Western China Securities, which raised 4 billion 967 million yuan in the Shenzhen Stock Exchange, became the highest point of the new capital raising since 2017. It can be seen that regulators are still very cautious about the scale of new shares raising, and it is hard to make a big difference when the market is unstable. One of the reasons why Foxconn has long been too late to get the approval is that its fund raising is too large to reach 27 billion 250 million. The other unicorn in Ningde is expected to raise funds 13 billion 120 million yuan and raise capital for more than 100 billion. And the adjusted fund raising is only 2 billion, which explains why it was the first time to get the IPO approval, rather than the Foxconn and Ningde era. According to the issue of the audit process, the trial after the appointment, fulfill certain will after will obtain approval. Foxconn and Ningde two big companies are more likely to go on the market if they want to go on the market. Its probably harder to get a fat person and solve the problem of raising funds one step at a time. Third, Wuxi lower earnings release, will inhibit the unicorn stocks market speculation. Prior to this, the IPO approval of the company, especially the 50 times price earnings ratio issued by the high price incentive, A shares, technology stocks, unicorn market intensified. It is easy for investors to make a contrast or guess by this. The price earnings ratio of drug Ming Kang is more than 50 times. After listing several times, it is hopeful to reach more than 100 times. So why cant other medical stocks and science and technology shares be seen to it? Wuxi to 23 times the earnings release or break investors unrealistic. Investors should not be too addicted to the hype of the unicorn concept stock market, or should return to the right way of value investment to find the mark that matches the performance and valuation. Investors need to understand that unicorn is not a plaything, not for speculation, but for investment, and is used to achieve the strategic goal of the new economy. This article source: Securities Times editor: Hou Weicheng _NT4124 Prior to this, the IPO approval of the company, especially the 50 times price earnings ratio issued by the high price incentive, A shares, technology stocks, unicorn market intensified. It is easy for investors to make a contrast or guess by this. The price earnings ratio of drug Ming Kang is more than 50 times. After listing several times, it is hopeful to reach more than 100 times. So why cant other medical stocks and science and technology shares be seen to it? Wuxi to 23 times the earnings release or break investors unrealistic. Investors should not be too addicted to the hype of the unicorn concept stock market, or should return to the right way of value investment to find the mark that matches the performance and valuation. Investors need to understand that unicorn is not a plaything, not for speculation, but for investment, and is used to achieve the strategic goal of the new economy.