In June, the number of IPO acceptance companies decreased by nearly ninety percent, and the Beijing Stock Exchange became the first choice for listing

Source: Brokerage China

The disappearing wave of IPO filings.

With the end of June, the IPO application report of December 31 of the previous year as the financial data base date has come to an end. In a single month, only 30 IPO companies were accepted by the Shanghai and Shenzhen North Stock Exchanges, a significant decline compared with the same period last year.

Among them, the Beijing Stock Exchange has become the mainstream choice of companies to be listed, with a total of 28 companies accepted in June, accounting for more than ninety percent.

Since the beginning of this year, in order to improve the quality of listed companies from the source, the regulator has introduced a number of measures to strictly control the quality of the declaration of enterprises to be listed, and tighten the responsibilities of all parties in the whole chain of issuance supervision.

In the context of IPO contraction, the advantages of leading brokerages are not as good as in the past. According to the statistics of the 32 IPO companies accepted by the Securities Times and Brokerage China reporters in the first half of the year, small and medium-sized securities companies performed better, which is also related to the long-term layout of small and medium-sized securities companies on the Beijing Stock Exchange. In the first half of this year, CITIC Securities and CICC had "zero acceptance" of IPO projects.

IPO filings cooled down in June

The wave of IPO filings in June this year was very light. According to the reporter's statistics on the acceptance of the Shanghai, Shenzhen and North exchanges, only 30 IPO companies were accepted in the month, a decrease of 87.80% compared with 246 in the same period last year.

Among them, the Shanghai and Shenzhen stock exchanges each accepted 1, namely Taijin New Energy, an IPO company on the Science and Technology Innovation Board, and China Uranium, an IPO company on the main board of the Shenzhen Stock Exchange.

The Beijing Stock Exchange accepted a total of 28 IPOs in June, which was the largest number of IPOs accepted by the three exchanges, but it was "halved" compared with the 60 accepted in June last year. Judging from the scale of corporate profits accepted by the Beijing Stock Exchange, there are 2 companies that will deduct non-net profits of less than 40 million yuan in 2023; 16 companies are in the range of 40 million to 60 million yuan. Another 2 companies deducted non-net profits of hundreds of millions of yuan, namely Jinhua New Materials (173 million yuan) and Dexin Technology (126 million yuan).

The main reason why the IPO application wave in June has attracted market attention is that most IPO companies choose December 31 of the previous year as the base date for filing materials every year, and they need to complete the declaration before the end of June. As a result, June is the traditional peak period for IPO filings.

Industry insiders said that the number of acceptors in June this year was only 30, which was expected. According to the reporter's previous interview, when it comes to the prediction of the number of IPO applications in June, it is generally believed that there are less than 50 in the investment banking circle.

So far, in the first half of this year, 32 new IPOs were accepted in the IPO market, a sharp decline from the 590 in the same period last year.

A large brokerage company in South China admitted to reporters that many project teams are basically afraid to report materials, on the one hand, the reserve project is not "top-notch", on the other hand, the declared project may face on-site inspection.

According to the newly revised List of Random Sampling Items of the China Securities Regulatory Commission in April, in order to expand the requirements for on-site inspections of enterprises under review and related intermediaries, the regulator has significantly increased the proportion of random sampling inspections of IPO enterprises from 5% to 20%. In addition, the supervision will correspondingly increase the proportion of problem-oriented on-site inspections and on-site supervision of the exchange, and after the adjustment, the overall proportion of on-site inspections and supervision will not be less than one-third.

The advantages of the leading brokerage companies have not been reflected

Against the backdrop of strict regulation, it is not easy for IPO projects to be accepted. According to the reporter's statistics, in the first half of this year, 32 companies were accepted, involving a total of 19 sponsors. Judging from the distribution of sponsors, the advantage of the head brokerage is not there, and small and medium-sized brokerages may have the opportunity to "counterattack".

Specifically, SDIC Securities was accepted by 5 IPO companies in the first half of the year, ranking first; Soochow Securities followed closely with 4 IPO companies.

In the first half of the year, China Securities had 3 IPO companies, ranking third. However, the large brokerage has two projects worth paying attention to. In the first half of this year, the only IPO companies accepted by the Shanghai and Shenzhen stock exchanges were sponsored by China Securities Construction Investment.

In addition, Oriental Underwriting Sponsor, Dongxing Securities, GF Securities, and Guotai Junan each had two IPOs accepted in the first half of this year.

In the first half of this year, the leading brokerages CITIC Securities and CICC rarely had "zero acceptance". However, the two leading brokerages still have "ammunition" reserves. According to the statistics of IPO counseling companies as of June 20, CITIC Securities and CICC have 7 and 5 IPO projects respectively, ranking among the top five in the industry.

This year, the Beijing Stock Exchange has become the main listing place for IPO companies, and in the eyes of many industry insiders, the business of the Beijing Stock Exchange is the focus of the layout of securities companies. A leading brokerage investment banker judged that the Beijing Stock Exchange is still in the expansion window, and investment banks should seize the opportunity and pay attention to the quality of companies to be listed.

There are about 400 pending reviews in the whole market

At the end of June, the exchange not only ushered in a wave of IPO declarations, but also updated the status of many companies that had previously "suspended review".

The reporter noticed that nearly 100 IPO companies that had previously "suspended the review" because they did not update their financial report data have successively completed the update of their financial data in 2023. The relevant person in charge of the exchange said that near the end of June, most of the enterprises under review have completed the update of financial data, and the exchange has resumed the review of these enterprises in accordance with the rules. If a small number of enterprises have submitted withdrawal applications or failed to submit financial data update documents, the exchange will perform the relevant procedures for termination review in accordance with the rules, and will release the termination review decision in the future.

For the resumption of the review of the initial public offering enterprises, the relevant person in charge of the exchange said that they will strictly implement the relevant requirements of the "1+N" policy documents, carry out the review work in accordance with laws and regulations, strictly control the issuance and listing access, and improve the quality of listed companies from the source.

According to the reporter's statistics, as of June 30, a total of 407 IPO companies were queuing up on the Shanghai, Shenzhen and North exchanges. Among them, the number of entrepreneurs in the queue on the Shenzhen Stock Exchange is relatively large, with a total of 183; 114 on the Beijing Stock Exchange; The Shanghai Stock Exchange has 110.

Editor-in-charge: Li Dan

Proofreader: Liu Xingying

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