𐒈|Iteʹseʹeʹʹeʹ|Pexels
Let's put aside the data, as far as the most intuitive experience is concerned, since the beginning of this year, the salary cut and various negative news in the financial industry have been the focus of public opinion, projected on the capital market, and everyone's sentiment is generally not high.
As we all know, since the second half of last year, the tone of domestic listing has become stricter. Especially after the promulgation of the "National Nine Articles" on April 12 this year, the review of new shares has become stricter and more difficult, and the acceptance of IPOs has been stopped for a time.
On June 20, all IPO acceptances on the three major A-share exchanges resumed; At the same time, the IPO meetings of the three major exchanges have also been restarted to speed up the review. Whether the IPO listing can be accelerated in the second half of the year will need to wait until the end of the year to see the results.
So, for the first half of 2024, how will the domestic IPO market perform under such a severe tone?
Based on the professional IT orange database product, we compared the IPO data of the past two and a half years, and made a specific analysis from the dimensions of listing location, listing sector, IPO fundraising, industry and so on.
The number of newly listed companies in China has declined for two consecutive years
IT orange data shows that from the second half of 2022 to the first half of 2024, the number of newly listed companies in China fell from 326 to less than 100 (82), showing a continuous downward trend. In the first half of 2024, the number of newly listed companies in China fell to a rare double digits, a new low in nearly a decade, while falling 53.67% month-on-month and 61.14% year-on-year from 2023.
Among them, the number of new domestic A-share IPOs decreased most significantly, from 140 in the second half of 2023 to 44 in 2024H1, a decrease of 68.6% from the previous month.
At present, the IPO market has not shown a trend of recovery, and the number of newly listed companies has further decreased. This is closely related to factors such as the global political and economic situation, the tightening of A-share IPO policies, and the slightly pessimistic market sentiment of investors.
There will also be a large number of pre-IPO companies retreating this year. It is mainly due to the frequent statements of the regulators to improve the quality of listed companies from the source, and to take a number of measures to this end.
In addition, non-compliance with the sector positioning, and the issuer's normative "hard injury" are common reasons for the termination of companies to be listed. For example, the positioning of the Science and Technology Innovation Board requires issuers to be "hard technology", the main board requires issuers to have both profit scale and industry status, and the Growth Enterprise Market requires issuers to develop better in terms of performance growth, business development space and anti-risk ability.
As a result, the decline in the number of IPOs in the first half of 2024 is also expected, but the decline of more than 50% is still quite shocking.
In terms of listing places, in the past two years, as the main position for domestic companies to be listed, the amount of new IPO funds raised in the A-share market reached a peak of 295.942 billion yuan in the first half of 2022, and since the second half of 2022, the amount of new A-share IPO funds raised has been "big dive" for three consecutive years.
In the first half of 2024, the total amount of new A-share IPOs raised was only 32.284 billion yuan, down 77.53% from the previous quarter and 84.2% from the first half of 2023. During the same period, the average fundraising size of domestic A-share new IPO companies was RMB394 million, down 51.5% quarter-on-quarter and 59.4% year-on-year from the first half of 2023.
In terms of the Hong Kong stock market, in the second half of 2022, the amount of new IPOs raised by Chinese companies in Hong Kong reached a high of 54.968 billion yuan in the past two years, and in the first half of 2024, the amount of IPO funds raised fell sharply to 8.767 billion yuan, a decrease of 37.41% from the previous month, and a decrease of 84.05% from its high.
IT orange data shows that in the past two and a half years, the number of IPOs and fundraising amounts of Chinese companies in the United States have been generally small, and the amount of financing in the second half of 2023 will only be 1.785 billion yuan; However, in the first half of 2024, it reached 11.121 billion yuan, showing a significant recovery. This is mainly due to the fact that Lotus, a new energy sports car manufacturer, and Zeekr, Geely's high-end electric vehicle brand, were listed on the Nasdaq, raising US$880 million and US$441 million in IPOs, respectively.
In terms of the number of new listings on each exchange, compared with other semi-annual years, the Hong Kong Stock Exchange will absorb the highest proportion of new Chinese listed companies in the first half of 2024, reaching 32.93%, with a total of 27 IPOs.
In the first half of 2022, the Shenzhen Stock Exchange and the Shanghai Stock Exchange accounted for 41.36% and 36.65% of China's newly listed companies, respectively, and this proportion has been shrinking in the following two years, with the proportion of newly listed companies on the two exchanges in the first half of this year accounting for 23.17% and 18.29%, respectively, slightly higher than the Nasdaq and Beijing Stock Exchange.
To some extent, after the second half of 2023, although the A-share policy tightening has exacerbated the downward trend of the main board market, it is a positive for the Hong Kong stock market, attracting many domestic companies to list in Hong Kong. According to relevant data, there are currently 104 Hong Kong IPO companies in the process, distributed in industries such as health care, consumer goods and information technology. Hong Kong IPOs are expected to heat up this year.
In addition, there are signs of recovery in U.S. IPOs this year, with more Chinese companies successfully listing in the U.S., reaching 11 in the first half of the year, including Lotus, which went public through SPAC curves.
In the first half of 2024, the Beijing Stock Exchange will absorb 10 listed companies, accounting for 12.2%, which is a new low since the first half of 2022.
On April 30, the China Securities Regulatory Commission (CSRC) issued guidance guidelines for companies listed on the New Third Board to apply for issuance and listing on the Beijing Stock Exchange, further optimizing the guidance and supervision of the Beijing Stock Exchange and improving the quality of listed companies on the Beijing Stock Exchange from the source.
This move will have a significant impact on the number of IPOs on the Beijing Stock Exchange during the year. Recently, a number of companies have withdrawn and terminated the IPO counseling of the Beijing Stock Exchange, including Jifu New Materials.
On a month-on-month basis, the largest decline in the number of new IPOs on the three major A-share exchanges was also the Beijing Stock Exchange, with a decrease of 82%; SZSE decreased by 70% month-on-month; The Shanghai Stock Exchange decreased by 65% month-on-month.
In 2024H1, the manufacturing industry accounted for nearly half of the new IPO companies, with Guangdong and Jiangsu leading the way
Among the new domestic IPO companies in 2024H1, 15 companies are registered in Guangdong, accounting for 18%. These include Yongxing Co., Ltd., a Guangzhou-based municipal solid waste treatment solution provider, XtalPi, an innovative drug developer in Shenzhen, and MEMSIC, a plastic products manufacturer in Huizhou.
There are 13 newly listed companies registered in Jiangsu, accounting for 16% and 11% of the country's new shares in the first half of the year, including Yongzhen Co., Ltd., a new lightweight magnesium and aluminum alloy material research and development company in Changzhou, Xidian Xinneng, a laminated busbar manufacturer in Suzhou, and Shengjing Micro, a developer of electronic control circuits in Wuxi.
In the first half of the year, 9 Beijing enterprises were successfully listed, including "Beizi Technology", an intelligent logistics system solution provider, "Laopu Gold", an ancient handmade goldware brand, and "America-China Jiahe", a cancer diagnosis and treatment service provider.
In the first half of the year, eight Zhejiang companies achieved IPOs, such as Geely's high-end electric vehicle brand Zeekr in Ningbo, SolaX Energy in Hangzhou, and Haisheng Pharmaceutical, a company focusing on the research and development of APIs and pharmaceutical intermediates in Quzhou.
In addition, Hong Kong also added 8 listed companies in the first half of the year, including 4 listed on the Hong Kong Stock Exchange and 4 listed on the NASDAQ, including the potash supplier "Michael Group" and the gaming and entertainment service provider "Pale Palace"; and Haidilao's overseas business spin-off company "Tehai International", financial public relations service "Huiyue Finance", etc.
In addition, Shanghai, Hubei and Sichuan have 7, 6 and 5 listed companies respectively, and Shandong, Fujian, Tianjin and other places have 1-3 listed companies each, accounting for 35% of the total.
(For a detailed list, please refer to the attached table at the end of the article)
In the first half of 2024, 24 companies in the domestic advanced manufacturing field achieved IPOs, a decrease of 56.36% from the previous quarter; In the traditional manufacturing sector, 15 companies achieved IPOs, a decrease of 68.75% from the previous quarter.
At present, among the newly listed companies in China's A-share market, manufacturing-related industries account for half of the country. The adjustment of the IPO policy has had a greater impact on such industries, resulting in a significant decline in IPO events in related industries since the beginning of this year.
In the first half of the year, 8 new listed companies were added to the enterprise service industry, including Dameng Data, Zhongchuang Co., Ltd., Tianju Dihe, etc., of which Dameng Data's fundraising amount reached 1.652 billion yuan.
There are 6 newly listed companies in the automobile transportation industry, namely Lotus and Zeekr in the US stock IPO, Tick Chuxing and Auto Street in the Hong Kong stock IPO, and Hongxin Technology and Jiezhong Technology in the A-share IPO.
In the medical and health field, 5 companies have achieved IPOs, including "Aidite", a supplier of dental materials, and "Haisheng Pharmaceutical", a company focusing on the research and development of APIs and pharmaceutical intermediates; The rest of the IPO companies are distributed in advertising and marketing, artificial intelligence, logistics and other fields.
In the first half of 2024, the IPO funds raised by 49 newly listed companies in China will be less than 500 million yuan, accounting for 59.8%; 20 IPOs raised more than 500 million yuan and less than 1 billion yuan, accounting for 24.39%; There are 13 companies that have raised more than 1 billion yuan in IPOs, most of which are listed and traded on the A-share market.
The largest IPO in the first half of this year was the listing of sports car and racing car maker Lotus on the NASDAQ, raising a total of US$880 million (about 5.72 billion yuan).
In terms of listing locations, the largest A-share IPO raised in the quarter was Yongxing Co., Ltd., a provider of municipal solid waste treatment solutions, which raised 2.43 billion yuan; The highest IPO in Hong Kong was the new tea brand "Cha Baidao", which raised HK$2.586 billion in IPO; The U.S.-listed Lotus IPO raised the highest amount of about $880 million.
More than 40% of newly listed companies have raised capital in the primary market
What is the pre-IPO financing situation of the 82 domestic companies listed in the first half of 2024?
According to IT orange data, 34 new IPO companies have only raised funds in the primary market, accounting for 41% of the total, among which the new economy enterprises with more financing times are the cross-border payment financial service provider "Lianlian Digital", the autonomous driving lidar environmental perception solution provider "Suteng Juchuang", and the AIoT marketing solution provider "Quzhi Group".
In addition, 17 companies have been listed on the New Third Board, including 7 of them applied for IPO listing again after being delisted from the New Third Board, such as 4 companies such as U.S.-China Jiahe, Bawei Shares, and Jundingda returned to the primary market for private equity financing after delisting, and then went public.
Another 10 companies have achieved "seamless" listing on the Beijing Stock Exchange through direct transfer, including rolling bearing manufacturer Wanda Bearing and petrochemical equipment company Wuxi Dingbang.
Finally, there are 31 companies that have not disclosed any external equity financing.
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