"Investor's Network" Xie Yingjie
In stark contrast to the high temperature, scorching heat and storms, A-share IPOs are getting colder and colder. With the changes in regulatory policies and the market environment, IPO companies have stopped in batches, and the number of cancellations has greatly exceeded the historical level of the same period.
Batch cancellation is due to the issuer's consideration of the validity period of the semi-annual report data, June is the month of IPO filing, and the number of declarations in July will inevitably decrease, but the batch suspension of IPOs is extremely rare.
According to incomplete statistics, as of June 27, the number of IPO companies that have terminated their listings in Shanghai and Shenzhen this year is about 216, of which more than 30% of them have been suspended in the latest month. This is also the highest number of listings terminated in a single month in Shanghai and Shenzhen since the reform of the registration-based system.
A record number of terminated audits were made
Just entered June, there were 5 companies announced the termination of the IPO, namely Baijia Era, CIIC shares, Jinbiao shares, Dehe Technology and Meikang shares, and the sponsors of the five companies were Huatai United Securities, CITIC Securities, Orient Securities, Minsheng Securities and Dongxing Securities.
Subsequently, on June 24, the Shenzhen Stock Exchange announced that AVIC, Meijing New Materials, and Haina Pharmaceutical withdrew their listing applications; On the same day, the Shanghai Stock Exchange announced that Mega-info Technology, Approval Technology, Deju Technology, and Huadun Defense withdrew their listing applications; On the same day, the Beijing Stock Exchange announced that AD Xinneng and Jiahe Electric withdrew their listing applications. The nine companies that ended in IPO involved 3 companies on the Growth Enterprise Market, 3 companies on the Science and Technology Innovation Board, 1 on the Shanghai Main Board, and 2 companies on the Beijing Stock Exchange.
On June 27, the Shanghai Stock Exchange announced the decision to terminate the review of 5 IPO companies, including 2 on the Science and Technology Innovation Board: Shandong Huaguang Optoelectronics and Borche Intelligent Equipment; 3 main boards: Hunan Wuxin Intelligent Technology, Shandong Lvba Chemical, Fujian Haidian Operation and Maintenance Technology.
And this is just a microcosm of the batch suspension of IPOs.
In the past three months since April 2024, 144 companies in Shanghai and Shenzhen have jumped directly from the "suspended" status of IPOs to "terminated" review, and this trend is still spreading, with 82 companies voluntarily "canceling orders" in June this year.
In this season, which is known as the most stringent financial data update season in history, more than 30% of the listed companies that have declared have withdrawn their applications and terminated their listings. As of June 27, there are still 264 companies planning to IPO in Shanghai and Shenzhen that have yet to update their financial data and are in a state of "suspension", while only 59 companies have completed the update of financial data and resumed IPO review.
Judging from the public inquiries, issues such as the stability of the company's operating performance and whether it conforms to the sector positioning are the focus of the IPO review, and many of them may leave the market early because they do not meet the listing threshold of the new IPO regulations.
The number of canceled orders by the top brokerage firms is in the top
From the perspective of distribution plates, since the beginning of this year, the most companies whose IPOs have been terminated want to land on the GEM, with 46. Among them, 10 companies plan to raise more than 1 billion yuan (inclusive), and the highest amount of funds raised is Weichai Lovol, which wants to raise 5 billion yuan in this IPO. The second place to be raised is Goertek (3.191 billion yuan), which was accepted as early as December 2021 and was not on the GEM for two and a half years.
Among the companies that have applied for listing on the GEM, the IPOs of three companies, Meike Technology, Xiaolun Zhizao, and Zhejiang Yahoo, have all passed the meeting in the first half of 2023, but after nearly a year, the three companies have not completed their registration and have terminated their IPOs in the near future. The three companies have a strong family color, and whether their R&D investment and technological advancement are in line with the positioning of the GEM, as well as corporate governance issues have been reviewed and concerned.
The number of IPOs terminated on the Beijing Stock Exchange is also quite high, with 40 so far this year. However, compared with other sectors, the amount of funds to be raised in the IPO of enterprises on the Beijing Stock Exchange is generally less than 500 million yuan, and there are only 5 companies with more than 500 million yuan (inclusive).
Among the 177 companies whose IPOs have been terminated this year, only one of them was terminated because of the failure to pass the review, namely Shenghuabo, which is one of the major domestic automobile wiper assembly supporting enterprises. A number of companies that have already passed the meeting have also chosen to cancel their orders, such as Jingchuang Technology and Liuchun Technology, both of which were accepted in June 2021 and terminated their IPOs in May this year.
From the perspective of industries, the proportion of manufacturing companies is relatively high, and many companies come from the computer, communication and other electronic equipment manufacturing industries. From the perspective of enterprise types, more than eighty percent are private enterprises. From the perspective of IPO review time, some companies have more than two years of IPO process from acceptance to cancellation; There are also companies with a shorter period of time, which apply for IPO for less than half a year, and then quickly leave the market.
With the implementation of the registration system, the regulator has strengthened the supervision of intermediaries, and included the "IPO withdrawal situation" in the assessment of sponsors, thereby further consolidating the responsibility of "gatekeepers".
According to the statistics of "Investor.com", in the wave of IPO termination, the number of cancellations by leading brokerages remained high. Among the sponsors, CITIC Securities, China Securities Construction Investment, Haitong Securities and CICC ranked among the top in terms of the number of rejections.
The 74 companies that terminated their IPOs in June 2024 were sponsored by 29 brokerages, of which CITIC Securities withdrew the most projects, reaching 13; followed by China Securities Construction Investment, with 8; Haitong Securities ranked third with the number of withdrawals from 7 sponsors, CICC ranked 4th, and 5 sponsored IPO companies have been suspended in the current period.
Extending the time to the first half of 2024, CITIC Securities has 33 initial public offering projects voluntarily choosing to withdraw this year, the highest among many sponsors, with a withdrawal rate of 38.37%.
In addition, 21 IPO projects sponsored by CICC were withdrawn, with a withdrawal rate of 46.67%; 20 companies voluntarily withdrew from China Securities Construction Investment, with a withdrawal rate of 33.33%; The number of sponsorship failures of Haitong Securities was 22. The withdrawal rate was 41.67%; 15 of the 45 projects of Minsheng Securities were voluntarily withdrawn, with a withdrawal rate of 33.33%.
It is worth noting that in February this year, the IPO of the Kelid Science and Technology Innovation Board was terminated, and on May 8, the Shanghai Stock Exchange issued four fines in a row, all of which pointed to the Kelid IPO project. As the sponsor of Kelide's IPO, Haitong Securities was criticized by the Shanghai Stock Exchange.
Compared with leading brokerages, small and medium-sized brokerages have not many sponsorship projects, and in a strictly regulated market environment, their IPO sponsorship business is under pressure, and the withdrawal rate is far ahead. During the year, there were 18 securities firms with an IPO rejection rate of 50% or more, and 10 securities firms with a rejection rate of 100%. For example, Pacific Securities, Kyushu Securities, etc., have only one sponsored project and withdrawn since the beginning of this year.
The new IPO rules continue to "show their prestige"
Different from the approval-based issuance of the A-share market, which has been in operation for more than 30 years, the registration-based issuance gives the right of choice to the market, takes information disclosure as the core, and does not set any administrative restrictions on the price and scale of new shares, which is essentially to change the relationship between the government and the market in the issuance of shares, so that the market can play a decisive role in the allocation of resources and let the government play a better role.
In the four years since the pilot registration-based system of the Science and Technology Innovation Board was launched, the A-share market has significantly weakened the trend of speculation, speculation and speculation, and the breakage of new shares has appeared repeatedly, and investor education has been significantly improved under reasonable institutional arrangements.
According to Wind data, from January to June, 34, 18, 30, 51, 41 and 82 companies terminated the audit, respectively. Among them, the number of cancellations in June hit a new high in the number of IPOs withdrawn in a single month in recent years.
On April 12, the new "National Nine Articles" were promulgated, one of which is to strictly control the issuance and listing access.
Specifically, the listing standards of the main board and the Growth Enterprise Market will be improved, and the evaluation standards for the scientific and technological innovation attributes of the Science and Technology Innovation Board will be improved; Include pre-listing surprise "clearance" dividends and other situations into the negative list for issuance and listing; Strictly supervise spin-offs and listings. After that, the China Securities Regulatory Commission and the stock exchange successively issued relevant supporting systems, which were officially implemented on April 30.
In May, the China Securities Regulatory Commission (CSRC) pointed out in its 2023 law enforcement review that it insisted on "reporting is responsibility". The China Securities Regulatory Commission emphasized that for issuers and intermediaries suspected of major violations of laws and regulations, even if they withdraw their applications for issuance and listing, they must adhere to the investigation to the end, put an end to "reporting with illness" and "entering from the mouth", and improve the quality of listed companies from the source.
According to public information, since the implementation of the full registration system, the Shenzhen Stock Exchange has imposed a disciplinary sanction of 5 years of non-acceptance of application documents on the refinancing issuer Sichuang Yihui in January 2024, and a disciplinary punishment of 3 years for not accepting application documents for IPO issuer Jingyu Environment in April. In June, the IPO issuer Silxin and the relevant responsible persons were disciplined, and its IPO application documents were not accepted for 5 years due to inflated revenue.
It is foreseeable that there will be more and more qualification penalties in the field of issuance and listing supervision. (Produced by Thinking Finance)■