For the first time since the phased tightening of IPOs (initial public offerings), the IPO market will pick up in the third quarter of 2024.
According to Wind statistics, in the third quarter of 2024, a total of 25 companies will achieve IPOs, with a financing scale of 15,374.5 million yuan, which is up from 14 IPOs and 8,874.32 million yuan in the previous quarter. It is worth noting that since the release of the "827 New Deal" in 2023 and the phased tightening of IPOs, the IPO market has continued to cool down, and the number of new shares issued and the total scale of financing have continued to decline. In the third quarter of 2024, the IPO market picked up for the first time.
However, judging from the dynamics of the issuance and examination, the signal of the acceleration of the IPO market has not yet been obvious. First, in terms of the number of acceptances, only 3 IPOs will be accepted in the third quarter of 2024, and a total of 30 companies will be accepted in the third quarter of last year; Second, from the perspective of the meeting, a total of 10 companies will attend the meeting in the third quarter of 2024, which is a rebound from the 6 companies at the meeting in the second quarter, and finally 8 companies were approved and 2 were suspended from voting; Third, in terms of the number of withdrawals, a total of 93 companies will withdraw in the third quarter of 2024, a significant decrease from the 212 companies in the previous quarter, and a slight increase from 79 in the third quarter of last year.
Accepted 3 IPOs
IPO processing remains frozen.
Wind data shows that in the third quarter of 2024, only 3 IPOs will be accepted by the three major exchanges in Shanghai, Shenzhen and North China. Among them, the Beijing Stock Exchange accepted 2, namely Shanghai Ballanz Automotive Testing Equipment Co., Ltd. (hereinafter referred to as "Ballanz") and Yatu High-tech Materials Co., Ltd. (hereinafter referred to as "Yatu High-tech"); 1 company accepted by the Shanghai Stock Exchange is Wuhan Xinxin Integrated Circuit Co., Ltd. (hereinafter referred to as "Xinxin Co., Ltd."); However, the Shenzhen Stock Exchange did not accept new IPO applications.
After the IPO acceptance suspension time was nearly half a year, the Shanghai and Shenzhen stock exchanges resumed accepting IPO applications on the evening of June 20. The IPO acceptance of the Beijing Stock Exchange was suspended for more than 3 months, and on June 21, it resumed and accepted the IPO applications of 3 new companies. However, IPO acceptance fell into a suspended stage until September 30, when the Beijing Stock Exchange accepted two new IPO applications and the Shanghai Stock Exchange accepted a new IPO. At present, the IPO acceptance of the Shenzhen Stock Exchange is still suspended.
According to the prospectus, Ballanz is a high-tech enterprise focusing on the research and development, production and sales of automobile repair, testing and maintenance equipment. The company's main products include tire removal machines, balancing machines, lifts, refrigerant recovery filling machines, pneumatic oil pumping machines and other automobile maintenance equipment and other equipment.
Yatu High-tech is a high-tech enterprise integrating R&D, production, sales and professional skills services of industrial coatings, and its main business is the R&D, production and sales of high-performance industrial coatings. The products are mainly used in automotive refinishing, automotive interior and exterior decoration and other industrial fields covering new energy commercial vehicles, rail transit and special vehicles.
Xinxin Co., Ltd. is a leading semiconductor characteristic process wafer foundry enterprise in China, focusing on characteristic storage, digital-analog mixing and three-dimensional integration and other business fields, and can provide various semiconductor product wafer foundries based on a variety of technology nodes and different process platforms. Among them, in the field of characteristic storage, Xinxin is the largest NOR Flash manufacturer in Chinese mainland.
10 companies attended the meeting
After the new Article 9, the suspended review committee deliberation meetings of the three major exchanges have also been restarted. The Shenzhen Stock Exchange, the Shanghai Stock Exchange and the Beijing Stock Exchange held review committee deliberation meetings on May 16, May 31 and June 17 respectively to resume the normal review of IPOs.
Wind data shows that in the third quarter of 2024, a total of 10 companies will attend the meeting, of which 5 companies will be arranged by the Beijing Stock Exchange, 3 will be approved, and 2 will be suspended; The SSE Science and Technology Innovation Board arranged 3 companies to attend the meeting, all of which were approved; The GEM of the Shenzhen Stock Exchange arranged two companies to attend the meeting, both of which were approved. It is worth mentioning that the main boards of the Shanghai and Shenzhen stock exchanges did not arrange corporate meetings.
The companies that attended the meeting include Hubei Xingfu Electronic Materials Co., Ltd. (hereinafter referred to as "Xingfu Electronics"), Shanghai Yutian Guanjia Technology Co., Ltd., Hefei Kebeier New Materials Co., Ltd., Jiangsu Pioneer Precision Technology Co., Ltd., Wenzhou Juxing Technology Co., Ltd., Huangshan Valley Jie Co., Ltd., Xinjiang Keli New Technology Development Co., Ltd., and Sikan Technology (Hangzhou) Co., Ltd.; Shaanxi Kelong New Material Technology Co., Ltd. and Jiangsu Tiangong Technology Co., Ltd. were suspended.
The surging news noticed that the companies that passed the meeting in the third quarter were small and medium-sized IPOs, and the fund-raising scale fluctuated at the scale of 1 billion, among them, Xingfu Electronics was not only the only project that passed the meeting in September, but also the largest IPO in the third quarter, reaching 1.21 billion yuan.
According to the prospectus, Xingfu Electronics is currently mainly engaged in the research and development, production and sales of wet electronic chemicals, including general wet electronic chemicals such as electronic grade phosphoric acid and electronic grade sulfuric acid, as well as functional wet electronic chemicals such as etching liquid, cleaning agent, developer solution, film peeling solution, and regeneration agent.
At this stage, there are few domestic enterprises that can produce electronic grade phosphoric acid for integrated circuits. According to the documents issued by the China Electronic Materials Industry Association, from 2019 to 2021, the company's electronic-grade phosphoric acid products ranked first in the country in the domestic semiconductor market share for three consecutive years. In 2021, the overall localization rate of wet electronic chemicals for integrated circuits is only 35%, and the market share of electronic grade sulfuric acid of Xingfu Electronics is in the first echelon in China.
Financial data show that from 2021 to 2023, Xingfu Electronics' operating income will be 529 million yuan, 792 million yuan, and 878 million yuan; From 2021 to 2023, the net profit deducted will be 93 million yuan, 146 million yuan, and 104 million yuan respectively.
93 enterprises withdrew
After the issuance of the new nine articles, the number of IPO cancellations continued to be high. Especially in June this year, it hit a peak of 116 companies withdrawing in a single month, and in the entire second quarter, a total of 212 companies withdrew.
In contrast, the number of IPO cancellations also fell in the third quarter. Wind data shows that a total of 93 companies withdrew in the third quarter of 2024. Although there was a significant decrease in the number of companies withdrawing from the previous quarter, there was still a slight increase from 79 in the third quarter of last year.
It is worth mentioning that since 2024, the China Securities Regulatory Commission has taken multiple measures to activate the M&A and restructuring market, and after the IPO listing is blocked, M&A may become a new direction for companies planning to IPO. According to incomplete statistics from The Paper, since 2024, 9 companies planning to IPO have been acquired by A-share listed companies (excluding two failed cases).
On August 13, Tongwei Co., Ltd. (600438) announced that the company intends to acquire no less than 51% of the equity of Jiangsu Runyang New Energy Technology Co., Ltd. (hereinafter referred to as "Runyang Shares") through capital increase and equity acquisition. Runyang shares previously planned to be listed on the GEM, but before the registration approval expired at the end of June this year, Runyang shares were not successfully issued.
On September 10, Yongda shares (001239) announced that the company intends to acquire 51% of the equity of Jiangsu Jinyuan High-end Equipment Co., Ltd. (hereinafter referred to as "Jinyuan Equipment") by paying cash.
The Paper noted that the mergers and acquisitions of A-share listed companies also include Beijing Noconda Pharmaceutical Technology Co., Ltd., which was rejected in July 2023, a new energy technology co., LTD., which was terminated in August 2024, Ningbo Ola Semiconductor Co., Ltd., which was withdrawn in May 2024, Gansu Haotian Technology Co., Ltd., which was withdrawn in December 2023, Jiangsu Jiahao Hot Melt Adhesive Co., Ltd., which was withdrawn in 2022, Shenzhen Haichanghua Shipping Co., Ltd., which was terminated in October 2022, and Shanghai Shenchuan Electric Co., Ltd., which was "rerouted" 3 months after applying for counseling and filing on the Beijing Stock Exchange, etc.