In August 2019, a total of 15 Chinese companies in the Shanghai and Shenzhen IPOs decreased by nearly 60% from the previous month; the amount of funds raised was 25.2 billion yuan, a decrease of 43.50% from the previous month. This month, the mainland became the largest market for IPO fundraising in the global capital market, accounting for 93% of the global IPO fundraising scale this month.
Editor’s note: This article is from WeChat public account “Beyond J Curve” (ID: Beyondthejcurve), author CVSource hits the data.
“Extend your reading with data”, this period beyond the J curve bringsAugust 2019 IPO Market Report . In August 2019, a total of 15 Chinese companies in the Shanghai and Shenzhen IPOs decreased by nearly 60% from the previous month; the amount of funds raised was 25.2 billion yuan, a decrease of 43.50% from the previous month. This month, the mainland became the largest market for IPO fundraising in the global capital market, accounting for 93% of the global IPO fundraising scale this month. See below for more details:
01 Analysis of Chinese Enterprise IPO Markets
In August 2019, a total of 19 companies successfully achieved IPOs in A-shares, Hong Kong stocks and US stocks, raising a total of 27 billion yuan;
This month’s IPO fundraising scale TOP5 enterprises are China Guangnuo, Suzhou Bank, Baichu Electronics, Jingchen Shares, Shangcheng International; IPO concentrated industry is Manufacturing; The IPO concentration area is Guangdong, Jiangsu. (See Figure 1)
Chart August 2019 IPO Tree Map
In August 2019, the global market IPO scale fell by a year-on-year, the IPO of the A-share market fell sharply, the IPO of the Hong Kong stock market was extremely sluggish, and the number of IPOs in the US stock market was unchanged from the previous month.
(1):Global MarketsIPO scale fell by a year-on-year ratio
In August 2019, the IPO performance of Chinese companies in the global capital market was not good. The number of IPOs decreased by 64.15% from the previous quarter and increased by 46.15% over the same period; the IPO scale decreased by 54.92% from the previous quarter and decreased by 53.77% during the same period. (See Figure 2)
1. A-share market
This month, the mainland has become the largest market for IPO fundraising in the global capital market, close to 93% of the global IPO fundraising scale this month.
2. Hong Kong stock market
The number of IPOs of Chinese companies in Hong Kong this month was only one, and the market was extremely depressed.
3. US stock market
A total of three Chinese companies went public in the US this month, namely Asia’s largest independent investment bank, Shangcheng International, the emerging growth food company that specializes in pork processing, China’s fragrant food and China Mobile Internet. Financial integrated service platform Yufu Group.
Chart IPO scale and quantity of global enterprises in the global market from August 20 to August 2019
(2) The IPO of the A-share market has fallen sharply
In August 2019, a total of 15 companies in China’s Shanghai and Shenzhen IPOs decreased by nearly 60% from the previous month; the amount of funds raised was 25.2 billion yuan, a decrease of 43.50% from the previous month. This month, the mainland became the largest market for IPO fundraising in the global capital market, accounting for 93% of the global IPO fundraising scale this month. (See Figure 3)
As of August 31, since 2019, the number of IPOs in the A-share market has reached 116,, with a total fundraising of 130.132 billion yuan, accounting for 60.81% of the total IPO financing in the global market. The number of IPOs in the science and technology board reached 28,, and the total fundraising amount was 41.693 billion yuan.
This month, the China Securities Regulatory Commission agreed that four companies completed the Kechuang Board IPO Note book, and for the first time rejected the IPO registration application of a company’s science and technology board, the rejected company For Hengan Jiaxin (Beijing) Technology Co., Ltd., the reason for being rejected is mainly the company meeting.Weakly based basic work and lack of internal control, as well as equity transfer issues and corresponding accounting error corrections were not disclosed in a timely manner.
Chart AMD IPO scale and quantity in A-share market from August to August 2019.
(3) The IPO of the Hong Kong stock market is extremely depressed
Since Q4 2018, the IPO performance of Chinese companies in the Hong Kong market has been not active enough. The market performance was extremely low this month. Only one company Chinese companies in Hong Kong IPO, Fundraising amount 1.17 billion yuan, and the amount of funds raised by 59.2 billion yuan in the same period has formed a world of difference. The reason is that the external economy is slowing down. On the other hand, the trading volume of the Hong Kong stock market has declined in recent months, and the market confidence is insufficient. All companies have delayed the listing of Hong Kong stocks. (See Figure 4, Table 1)
This month, a total of 27 companies Chinese companies applied for listing on the Main Board of the Hong Kong Stock Exchange. On August 25, Defiance Technology officially submitted IPO prospectus documents to the Hong Kong Stock Exchange, intending to adopt the same rights. “The method is listed on the main board of the Hong Kong Stock Exchange.
Graphic scale and quantity of Chinese IPOs in the Hong Kong stock market from August to August 2019.
Form 1 List of IPOs in the Hong Kong stock market in August 2019
(4) The number of IPOs in the US stock market was held last monthPing
In August 2019, a total of three Chinese companies were in the US capital market IPO, which was the same as last month. The amount of funds raised was 1.7 billion yuan, a decrease of 65.31% from the previous month. 3 of the companies listed this monthTwo companies from the financial industry and one from the manufacturing industry, since August 18, the number of IPOs in the US stock market and the scale of fundraising have been fluctuating widely. (See Figure 5, Table 2)
Chart 5 The size and quantity of IPOs in the US stock market from August 20 to August 2019
Form 2 IPO list of Chinese companies in the US market in August 2019
02 Analysis of Chinese Enterprise IPO Industry, Region and Trading Sector
In August 2019, energy and mining stocks IPO topped the list, and Guangdong area became the most attractive area for IPOs this month, Shenzhen Small Board < /strong>IPO is now a billion-dollar project.
(1) The IPO of energy and mining stocks tops the list
In August 2019, IPO listed companies were mainly concentrated in manufacturing. A total of 9 manufacturing companies had successful IPOs, raising funds of 4.991 billion yuan. Energy and mining companies only One company, the IPO fundraising amount has reached 12.574 billion yuan, accounting for nearly 50% of the total fundraising in various industries this month. (See Figure 6, Figure 7)
Chart 6 August 2019 China IPO scale industry distribution
Chart 7 August 2019 China Enterprise IPO Quantity industry distribution
(2) The most popular IPO in Guangdong area
The following picture shows the distribution of IPOs and fundraising scales of Chinese enterprises in August 2019 and the detailed IPOs and scales of enterprises in various regions of China. (See Figure 8, Table 3)
Chart 8 The distribution of IPOs and fundraising scales of Chinese enterprises in August 2019
Form 3 Regional distribution of IPOs and fundraising scales of Chinese enterprises in August 2019
(3) The SMEs of the Shenzhen Stock Exchange, the small and medium-sized IPOs are now billions of giants
In August 2019, the main board of the Shanghai Stock Exchange was listed on the Main Board of the Shanghai Stock Exchange, becoming the largest number of listed companies this month, raising 2.64 billion yuan of funds; 3 listed companies on the Shanghai Stock Exchange, 41.4 billion yuan of funds raised; 4 small and medium-sized board listings on the Shenzhen Stock Exchange, the amount of funds raised is as high as 17.262 billion yuan, of which China Guangnuo (003816.SZ) has become the history of Shenzhen stock exchange with a fund raising amount of up to 12.574 billion yuan. Since its largest fundraising project, it has also been the first A-share listed company to start with 003 code; Shenzhen Stock Exchange GEM listed 2, raising funds of 989 million yuan; only one in Hong Kong this month The main board of the Stock Exchange was listed, raising funds of 117 million yuan; 1 NASDAQ global market, raising funds of 451 million yuan; listing of NASDAQ capital market in the United States, raising funds 0.41 billion yuan; one company listed on the New York Stock Exchange, raising funds of 1.204 billion yuan. (See Figure 9)
Chart 9 The number of IPOs in China in August 2019 (left) and the size of the fundraising (right) trading sector
Note: SSE refers to the main board of the Shanghai Stock Exchange; SZSE refers to the SME Board of the Shenzhen Stock Exchange; STAR refers to the Board of Directors of the Shanghai Stock Exchange; ChiNext refers to the GEM of the Shenzhen Stock Exchange; HKEx refers to the Main Board of the Hong Kong Stock Exchange; NGM refers to the global market of the NASDAQ Exchange; NCM refers to the US Nasdaq exchange capital market; NYSE refers to the US New York Stock Exchange.
03 Key Cases of IPOs in Chinese Enterprises
In August 2019, the fundraising scale of the Top 5 IPO projects was over 1 billion yuan, accounting for 73% of the total fundraising in August, and the average financing amount of the remaining IPO projects was bipolar. The situation of differentiation. This month, the new stocks focused on the company as China Guangnuo, Jingchen, Microcore, and Fortune Group.
(1) TOP5 IPO fundraising scale of Chinese enterprises
The following table shows the TOP5 of the IPO fundraising scale of the Chinese enterprises in August 2019.
Form 4 TOP5 of IPO scale of Chinese enterprises in August 2019
(2) Focus on new shares
1.China General Nuclear
(1) Release Overview:
On August 26, 2019, China General Nuclear Power (003816.SZ) was listed on the Shenzhen Stock Exchange. The current issue was 504,986,100 shares, accounting for 10% of the total issued share capital. The issue price was 2.49 per share. Yuan, the price-earnings ratio after the issuance was 14.60, the total amount of funds raised this time was RMB 1,257,415,100, and the net proceeds were RMB 1,238,978,000.
(2)Company Profile:
China Guangnuo Power Co., Ltd. was established on March 25, 2014 and is a member company of China General Nuclear Power Group Co., Ltd., whose main business scope covers nuclear energy, wind energy and water energy. Clean energy development such as solar energy, energy conservation, and nuclear technology applications.
(3) History financing
In April 2014, China Guangdong Nuclear Power Co., Ltd. received a capital increase of 5.055 billion yuan from Hengjian Investment; on December 10, 2014, China General Nuclear Corporation listed on the main board of the Hong Kong Stock Exchange, funding HK$24.534 billion >.
(4) Institutional IPO Book Exit
China Guangnuo IPO, the equity value of Hengjian Investment before exit is 418,312,800 yuan.
(5)Evaluation
China Guangnuo’s listing became the “A+H” model listed company in China’s first nuclear power industry, which is conducive to the company’s continued consolidation and expansion of nuclear power market share, while the company’s solvency Will be enhanced, profitability and financial security will be effectively improved.
2.Jingchen Shares
(1) Release Overview
On August 8, 2019, Jingchen Co., Ltd. (688099.SH) was listed on the board of the Shanghai Stock Exchange, and issued a total of 41.12 million shares, accounting for 10% of the total issued share capital. The issue price is The price per share was 38.50 yuan, the post-issuance price-earnings ratio was 58.42, the total raised funds was 1,583.12 million yuan, and the net proceeds were 1,520,229,900 yuan.
(2)Company Profile
Chenchen Semiconductor (Shanghai) Co., Ltd. is headquartered in San Jose, Calif., with headquarters in Shanghai, China. The company’s main business is the development, design and sales of multimedia intelligent terminal SoC chips. The chip products are mainly used in the frontier areas of technology such as smart set-top boxes, smart TVs and AI audio and video system terminals. The business covers major areas of the global economy such as China, Hong Kong, the United States and Europe.
(3) History financing
Chenchen shares have been awarded IDG Capital, Walden International, Huasheng Investment, Hongma Investment Group, Kaishi Capital, Zhongyu Capital, Shangyi Capital, Xiaomi Technology,Investment in institutions such as Skyworth Group.
(4) Institutional Fund IPO Book Exit
Chenchen shares this IPO, the equity value of Huadeng International before the exit is 74,310.1 million yuan; the value of the equity before the withdrawal of Huasheng Fund is 488.841 million yuan; the value of the equity before the exit of Hongma Investment Group is 41,287.29 million yuan; the value of the equity before the exit of Xiaomi Technology was 50,040,260 yuan.
(5)Evaluation
The listing of Jingchen shares has brought a lot of returns to several investment institutions, which has improved their capital value and financing efficiency, and is conducive to the R&D innovation of semiconductor chip technology and the further expansion of the industrial chain.
3.Microcore Creature
(1) Release Overview
On August 12, 2019, Microcore Bio (688321.SH) was listed on the Shanghai Stock Exchange, and 50 million shares were issued this time, accounting for 12.20% of the total issued share capital. For the price of 20.43 yuan per share, the post-release price-to-earnings ratio is 467.51, the total amount of funds raised in this issuance is 1.015 million yuan, and the net proceeds are 945,158,200 yuan.
(2)Company Profile
Shenzhen Weixin Biotechnology Co., Ltd. is a bio-tech company dedicated to the development of original small molecule drugs and innovative drug services.
(3) History financing
Microcore Bio was awarded by Pangu Haida, TEDAK, Beijing Science Investment, Xiangfeng Investment, Lilly Asia Fund, Fukun Venture Capital, Jianxin Kangying, Yifeng Capital, Detong Capital, Tongchuang Weiye, Institutional investment in Shenzhen Venture Capital, Yongzhi Assets, CMB International, and Mangrove Growth.
(4) Institutional Fund IPO Book Exit
Microcore Bio IPO, the equity value of Shenchuang Investment before the exit was 329.424 million yuan, the equity value of the former equity capital before the exit was 372,800,100 yuan, and the equity value of Xiangfeng Investment before exit was 487,372,900 yuan. Before the exit of CMB International, the equity value was 255,232,500 yuan, the equity value of Tongchuang Weiye before the exit was 194,489,900 yuan, and the equity value before the exit of Essex Capital was 266,957,100 yuan. The value of the equity of Jianxin Kangying before the withdrawal was 245,425,300 yuan.
(5)Evaluation
Microcore is listed this timeKechuang board is the first batch of innovative medicine, and at the same time, it injects a booster into the company’s own drug research and development, thus accelerating the listing process of more high-quality original drugs.
4.Yongfu Group
(1) Release Overview
On August 15, 2019, JF.NASDAQ was listed on the Nasnac Global Market, and this time it issued 8.9 million ADSs (equivalent to 8.9 million shares of Class A common stock), including 675.00 10,000 shares of ADS new shares and 2.15 million ADS shares for sale, the new shares accounted for 2.90% of the total issued share capital, the issue price was 9.50 US dollars per share, the total amount of funds raised was US$64.12 million, and the net proceeds were raised. $5,786,200.
(2)Company Profile
Yufu Digital Group is a digital technology enterprise driven by artificial intelligence technology and belongs to technology companies. As a group company (holding parent company), the company is responsible for group strategic planning and investment mergers and acquisitions. It has established more than 10 independent wholly-owned or controlled subsidiaries, with digital technology, digital accounts and digital Hui, Digital Wealth, Digital International, five major business segments, each business board has its own series of innovative product brands, including: Hao Fu Technology, Yi Yi Technology, Yu Fu Pu Hui, Yu Fu Wallet, Yu Fu Wan Card, Wanka Mall , Wukong Wealth Management, Minhang Insurance Broker, Yan Fu Consulting, Yan Fu Securities (Hong Kong), Fortune Wealth (Hong Kong), etc., and holding or participating in insurance brokerage, fund sales, banking, financial leasing and other license-qualified mechanism.
(3) History financing
The Group has been invested by IDG Capital, SIG Heiner Asia, Cinda Capital, Incorpor Capital, Incorp Capital, and Guoshi Capital.
(4)Evaluation
The Group’s listing has expanded its financing channels and enhanced its visibility and credibility in the Internet finance industry, while at the same time enabling it to continue to enhance its digital technology capabilities and better empower traditional finance.
04 Policy Hotspot Review
On August 5th, the US securities regulatory authorities made major revisions and adjustments to the US Nasdaq exchange IPO rules. The adjustment direction is mainly to restrict the number of public shares and the amount of IPO funds raised. Improvement.
On August 23, the China Securities Regulatory Commission drafted “Sstrong>Several Provisions on Piloting Domestic Subsidiaries of Subsidiaries of Listed Companies” (hereinafter referred to as “Several Provisions”)And publicly solicited opinions on the same day.
The main contents include: First, the conditions for the pilot separation are clearly defined. Set the profit threshold for the proposed spin-off company and limit the scale of the assets to be demolished, and ensure that the listed company has sufficient business and assets to support its independent listing status; it is required to split the listed company to meet the standard operating standards, and the parent and subsidiary companies after the spin-off Meet the “three separate and two independent” requirements. The second is to standardize the spin-off process. The spin-off of a listed company shall fully disclose the information in accordance with the provisions of major asset restructuring, and implement the special resolution procedure of the shareholders’ general meeting. After the spin-off, the issuance and listing of the subsidiary shall comply with the relevant provisions on the listing of the initial public offering and the listing of the initial public offering. The third is to strengthen the supervision of the spin-off listing.
The China Securities Regulatory Commission and the stock exchange will pursue the responsibility for violations of laws and regulations in accordance with the law; strengthen the responsibilities of the intermediary agencies, and the financial advisors will continue to supervise the listing status of the listed companies after the spin-off.
On August 23, the China Securities Regulatory Commission issued the “Special Provisions on Major Asset Restructuring of Kechuang Board-listed Companies“, which stated that the company has implemented major asset restructuring and its operating income indicators. Execute the following criteria: the operating income generated by the assets purchased and sold in the most recent fiscal year accounted for more than 50% of the operating income of the audited consolidated financial accounting report of the company during the same period, and more than 50 million yuan < /strong>. In addition, the regulations also pointed out that the price of shares issued by Kechuang Board Company shall not be less than 80% of the market reference price. The market reference price is one of the company’s stock trading averages 20 trading days, 60 trading days or 120 trading days before the announcement of the board resolution to purchase the shares.