New shares break frequently, more and more investors are starting to abandon purchases, and underwriters bear greater underwriting risks
Wen | Caijing reporter Zhang Jianfeng Zhang Xinpei
Edited | Wang Lifeng and Lu Ling
On April 18, Nanochip Micro (688052. SH) 778 million yuan of investors abandoned the amount of shares in the initial public offering, which attracted market attention. This data is not only higher than that of China Mobile (600941. SH) of 756 million yuan of abandonment, also set a record for the A-share new share issuance market. The number of shares abandoned by Nachi Micro this time accounts for nearly 40% of the number of online issuances.
"Recently, the main reason for the abandonment of new shares is that the issue price is too high, coupled with the poor market conditions, resulting in a more common phenomenon of breaking at the opening." Investment banker Hou Dawei analyzed the "Finance" reporter that it may lose money when it is in hand, so investors are unwilling to pay the subscription fee after winning the lottery.
As a chip company, Nanochip's performance has increased significantly in recent years. Although the high issue price raised the company's total fundraising to 5.811 billion yuan, which is 7.75 times the amount of funds to be raised, it also laid the groundwork for the above-mentioned abandonment.
As the lead underwriter of Naxin Micro IPO, Everbright Securities also set a new high in the A-share IPO market with its underwriting amount of 778 million yuan.
According to Wind data, as of April 18, 2022, in the history of A-share IPO issuance, there are 14 companies with underwriting amounts of more than 100 million yuan, four companies with a total of more than 500 million yuan, and the remaining three are China Mobile and Postal Savings Bank (601658. SH), CCCC (601800. SH）。
Unlike the number of underwriting brokers issued by China Mobile and Postal Savings Bank of China, which are six and four respectively, there is only one Everbright Securities company mentioned above.
According to the data, the total cost of the new share issuance of Naxin Micro is 230 million yuan. Among them, the sponsorship fee is 3 million yuan and the underwriting fee is 200 million yuan.
"The underwriting income of new shares of securities companies generally has a guaranteed amount, and then charges according to the proportion of the amount raised." Hou Dawei said that the phenomenon of large amounts of new stock abandonment will force the issue price to be lowered, after all, it is still necessary to comply with the market.
Ultra-high issue price
The IPO issuance of Naxin Micro adopts a combination of strategic placement, offline issuance and online issuance, and the number of shares issued is 25.266 million shares. Since the initial effective subscription multiple online is 3209.61 times, Nanochip micro-launched the callback mechanism, and will call back 10% (2.281 million shares) of the number of shares in this public offering after deducting the final strategic placement part.
After the callback mechanism was activated, the company's final number of shares issued offline was 14.0816 million shares, the final number of shares issued online was 8.7235 million shares, and the final winning rate of online issuance was 0.04218750%.
The number of investors paid and subscribed for on The Core Micro-Network was 5.342 million shares, and the amount of payment subscription was 1.229 billion yuan. Correspondingly, online investors gave up the subscription of 3.3815 million shares, and the amount of abandonment of subscription was 778 million yuan.
Behind the large-scale abandonment of subscription in online issuance is the high issue price of Nanocore. The company intends to raise 750 million yuan in this IPO, which is calculated according to the number of new shares issued by the company 2526.6, and the corresponding issue price is 29.68 yuan per share.
However, the preliminary inquiry allowed Nanochip to determine a higher issue price. During the inquiry period, the company's sponsor institution (the lead underwriter) received a total of 5934 quotations from 5934 placement objects through the SSE's offline subscription platform, with a quotation range of 61.57 yuan / share to 371 yuan / share. After excluding the invalid quotation and the highest quotation, the median quotation of all investors under the network is 262.22 yuan / share. Among them, the median quotation of public offering products, social security funds and pensions is 262.57 yuan / share.
As a result, the issue price of Nanochip's new shares was determined to be 230 yuan per share. Earnings per share are calculated according to the net profit attributable to the parent in 2020 divided by the total share capital after the issuance, and the company's price-to-earnings ratio for this offering is as high as 574.05 times. This data is not only higher than the static price-earnings ratio of 50.67 times the average of 50.67 times in the most recent month of the software and information technology service industry as of April 7, but also much higher than the average static price-earnings ratio of 198.84 after deducting non-deductions for the three comparable companies in the industry, such as 688536.SH.
Nanochip's main products include signal sensing chips, isolation and interface chips, and driver and sampling chips. From 2018 to 2020, the company's operating income increased from 0.4 billion yuan to 242 million yuan, and the net profit attributable to the owners of the parent company increased from 2.3085 million yuan to 50.816 million yuan. In 2021, the growth rates of the company's operating income and attributable net profit were 256.26% and 334.13%, respectively.
Benefiting from the development trend of chip localization and the growth of the company's product shipments, Nanochip expects that in the first quarter of 2022, the operating income will increase by 84.23% year-on-year to 157.92%, and the net profit will increase by 116.29% to 208.98% year-on-year.
The pressure on underwriting by investment banks has increased sharply
As the lead underwriter of Naxin Micro's IPO, the underwriting amount and underwriting ratio of Everbright Securities hit a new high in the A-share new share issuance market.
It is worth noting that Everbright Securities' subsidiary Everbright Fuzun has a strategic placement of 116 million yuan, plus an underwriting amount of 778 million yuan, which means that Everbright Securities will spend nearly 900 million yuan to buy Naxin Micro.
Wind data shows that in 2021, Everbright Securities achieved a main underwriting income of 640 million yuan, ranking 15th in the industry. Among them, the IPO debut achieved revenue of 595 million yuan. The market share was 2.01%. According to the annual report, in 2021, Everbright Securities achieved operating income of 16.707 billion yuan. Achieved a net profit attributable to shareholders of the parent company of 3.484 billion yuan.
The underwriting fee of nearly 900 million yuan is not a small amount for Everbright Securities.
Chengda Pharmaceutical (301201. SZ) was also abandoned, and its lead underwriter was also Everbright Securities. In the end, Everbright Securities passively underwritten 391,900 shares, with an underwriting amount of 28.4899 million yuan, accounting for 1.62% of the total number of issuances.
With the frequent occurrence of new stock breaks, more and more investors are beginning to abandon purchases, which also allows the lead underwriters to bear greater underwriting risks. Judging from the previous cases of securities companies and investment, in the current market, most of the securities companies have experienced floating losses.
With Haitong Securities previously invested in Aojie Technology (688220. SH), Maiwei Bio (688062. SH) for example. Haitong Securities co-invested in 836,600 shares of Aojie Technology, with an issue price of 164.54 yuan / share, and the closing price on April 18 was 69 yuan / share, with a floating loss of 79.9288 million yuan; followed by 287.363 million shares of Maiwei Biotech, the issue price was 34.8 yuan / share, and the closing price on the 18th was 17.41 yuan / share, with a floating loss of about 47.9724 million yuan.
"If the new shares are not broken, the main underwriting will make a lot of money." Wang Jiyue, a veteran investment banker, said. Broker underwriting is risky, but whether it is a curse or a blessing in the end is full of unknowns.
There are also a small number of brokers who have floating profits in follow-up investment and underwriting. For example, the stock price of Chengda Pharmaceutical, which was previously underwritten by Everbright Securities, has risen to a certain extent compared with the issue price. The issue price of Chengda Pharmaceutical was 72.69 yuan / share, and it closed at 91.35 yuan / share on April 18. Hemai shares (688032. SH), due to the abandonment of online investors, the lead underwriter CITIC Securities had no choice but to passively underwrite. However, based on the closing price on April 18, CITIC Securities underwritten shares have floated profits. However, from the data point of view, such cases are still a minority.
"This year, brokerage investment bank underwriting occurs frequently, which is affected by market factors, but it is also related to the pricing of some new stocks. The pricing of new shares must be more scientific, reasonable and prudent, otherwise the underwriting fees may not be enough to compensate. An investment banker in Shenzhen told the "Finance" reporter.
Some insiders have suggested whether the existing rules can be improved and modified. "The subscription rate of online issuance is less than 70%, indicating that online investors do not recognize, and it is not appropriate to re-issue at this point in time, and the issuance should also be suspended." But the current rule is that the overall subscription rate is less than 70% of the total issuance amount before the issuance is suspended, which is almost impossible and unreasonable in the case of a large proportion offline. Wang Jiyue told the "Finance" reporter.