This article is from WeChat official account:Cailian Press (ID: cailianpress), author: Jiang Fan, original title “IPO price set up! The social security fund invests 7 billion yuan. How much room is there for new ants? “, the head picture comes from: Visual China
Just now, the initial inquiry of Ant IPO was announced on the official website of Shanghai Stock Exchange. According to related announcements, after nearly 10,000 institutional accounts inquired about the price, the Ant’s A-share issue price was determined to be 68.8 yuan per share, with a total market value of 2.1 trillion yuan, which is about 25,000 yuan compared with previous forecasts by many investment banks. The valuation is RMB 3 trillion, and the discount is about 20% to 30%. The issue price of Hong Kong stocks was also announced on the same day, at 80 Hong Kong dollars, which is basically the same as A-shares after excluding exchange rate effects.
According to the issuance pricing, it is estimated that the scale of the A-share fundraising before the green shoe is 115 billion yuan, and the A-share fundraising scale after the green shoe is 132.2 billion yuan. Among them, the new scale of Greenshoe front to institutional and individual investors is about 22 billion yuan. It is also understood that the number of ant inquiries is more than double the average value of the Sci-tech Innovation Board, and the total number of offline subscriptions for new purchases has reached 284 times.
It is worth noting that the ant IPO investment lineup was also disclosed for the first time. Among them, The National Social Security Fund invested an additional 7 billion yuan and subscribed for more than 100 million new shares of Ant, becoming the strategic investor with the largest subscription amount outside of Alibaba Group.
According to the prospectus and related announcements, Ant Group will conduct online and offline subscriptions on October 29, and it is expected to be listed on the Science and Technology Innovation Board as early as early November. This means that the new ants fight will also start this week. Ant shares issued 66.83 million shares online, and the upper limit for online single account subscription is 317,000 shares. Online top grid subscription requires a Shanghai stock market value of 3.17 million yuan. According to the current sci-tech innovation board’s winning rate, if top grid purchases, the probability of winning may exceed 100%. Its A-share stock code is 688688, and the subscription code is 787688.
Offline subscription multipleUp to 284 times, how much room does the ant have to rise?
It has only been about two months since Ant announced the launch of the listing process this year, but the listing of Ants has attracted much attention. As the first financial technology giant in the A-share market, investors are enthusiastic about investing in Ant.
According to the issuance plan, Ant will issue no more than 1.67 billion new shares in A-shares, of which 1.34 billion shares will be offered for initial strategic placement and 334 million shares will be available for institutional and individual investors to “make new” shares.(before the green shoe mechanism). Calculated according to the price per share, the total scale of green shoes’ A-share fundraising is 115 billion yuan, of which the scale of “news” for A-share institutions and individual investors exceeds 22 billion yuan.
According to the inquiry announcement, there are nearly 10,000 institutional investor accounts participating in the initial inquiry of Ant IPO, of which more than 7000 qualified placement targets, about twice the average number of inquiry on the Sci-tech Innovation Board. Based on the agency’s quotation, the final price of Ant A shares is 68.8 yuan. According to an announcement on the stock exchange tonight, Ant’s initial inquiry intends to purchase over 76 billion shares, and the overall offline subscription multiple is 284 times. This is unprecedented in the “new fight” competition.
Some analysts said that based on the issue price, the market value of Ant is 2.1 trillion yuan, and the P/E ratio in the past 12 months is 48 times. In the next 3 years, (2022 The P/E ratio is only 24 times, which is about 1/3 of the average P/E ratio of listed companies on the Science and Technology Innovation Board. In addition to being “cheaper” than the Sci-tech Innovation Board, Ant’s pricing is not high compared to other new economy companies such as PayPal and Meituan at home and abroad.
According to Wind data, the average online lottery success rate for all new A shares issuances in the past ten years was only 0.045%. It is equivalent to 10,000 people to make a new call, and only 4.5 people can make it, which is more difficult than a new house lottery. Multiple brokersShi predicts that because the price is cheaper than expected, institutions are actively subscribing, and the market sentiment is enthusiastic, the ant “news” will be more competitive than expected. But it is still very optimistic about its upside potential.
Li Quan, a professor at the School of Finance of Nankai University and deputy dean of the Zhongguancun Internet Finance Research Institute, said that nearly 10,000 institutional investor accounts participated in the inquiry, which shows the popularity of Ant’s IPO in the market and reflects the investment of global professional institutions. The readers are unanimously optimistic about the growth prospects of ants.
Guangfa Securities believes that in the long run, Ant’s “demonstration effect” is mainly reflected in the reshaping of the valuation system. A-shares tend to be US stocks and Hong Kong stocks, that is, high-quality growth stocks may be given high valuations by the market for a long time. Regarding the trend of the ant market, GF Securities believes that the post-IPO trend of ant is estimated, due to the high valuation given to ant by the market before the issuance, compared with SMIC, the secondary market premium is limited and the short-term callback is also limited. At the same time, Ant, as a benchmarking company with the “FANNG” Internet giants in the US stock market, may have stronger linkages with US technology stocks in future market value fluctuations.
After investing 7 billion ants, the social security fund becomes the biggest winner?
This announcement also disclosed for the first time Ant’s strategic investor lineup for IPO on the Science and Technology Innovation Board, covering 29 top investors at home and abroad, including top sovereign funds, top domestic insurance companies, banks, large state-owned enterprises and Private enterprises, etc. will bring stable long-term funds to A shares.
It is worth noting that the Social Security Fund has become the largest strategic investor in Ant Group except Alibaba Group. The announcement shows that the Social Security Fund has invested an additional 7 billion yuan and subscribed for more than 100 million new shares of Ant. Yesterday, Chen Wenhui, vice chairman of the National Social Security Fund, called the Ant Group at the Bund Financial Summit, hoping to give more war quotas.
It is understood that in 2015, at the invitation of Jack Ma, the Social Security Fund invested 7.5 billion yuan in Ant and subscribed for nearly 700 million shares. Calculated based on the issue price of Ant A shares, this investment is currently worth more than 48 billion yuan, an increase of nearly 7 times in five years.
In addition, there are many traditional financial institutions and large state-owned enterprises in the institutional investment lineup. Ant’s strategic investors on the Sci-tech Innovation Board also include global sovereign funds such as China Investment, Canadian Pension, Singapore Government Investment, Temasek, and Abu Dhabi Investment Authority; insurance companies such as China Life, PICC, Taiping, China Re, Sunshine, and Taikang. ; CNPC, China Merchants, Minmetals, COSCO Shipping and other large state-owned enterprises. In addition, Bank of Communications International, a subsidiary of Bank of Communications, is also a strategic investor.
According to the analysis of a senior investment banker, Ant has introduced incremental listings on the Science and Technology Innovation BoardInvestors are conducive to expanding the investor base of the Sci-tech Innovation Board. The entry of more qualified investors will attract more high-quality targets to be listed on the Science and Technology Innovation Board, and then mature institutional investors will lead the issuance and pricing, which will eventually form a virtuous circle.
Mo Kaiwei, a senior researcher at the Institute of Digital Economy, Zhongnan University of Economics and Law, said that the listing of Ant Group on the Science and Technology Innovation Board will bring more room for imagination to A shares and greatly enhance the absorption of foreign capital by domestic listed companies Strength, effectively broaden the source of resources, and is more conducive to activating and prospering the Chinese market.
It is worth noting that Ant has set a stricter lock-up period for strategic investors than the 12-month regulatory requirement. For strategic investors other than sponsoring and co-investment and ecosystem matching public offering funds, among the alloted stocks that need to be promised, 50% of the shares are restricted for 12 months, and 50% of the shares are restricted for 24 months. This also means that the above-mentioned strategic investors, including the world’s top sovereign funds and Alibaba, are subject to the lock-up period.
Will the ants siphon funds? Introduce global long-term funds into A shares
Ant has become the largest IPO this year. Will this trigger a siphon effect in the A-share market?
In this regard, the chief investment officer of the Federal Reserve Securities, Hu Xiaohui, said that although Ant’s $200 billion valuation may have a certain capital diversion effect, it is not that high market value will affect the stock index and form a siphon effect. , This may also be an engine for the stock market to rise. “The possible siphon effect is not in the A-share market, but will siphon long-term international funds to only A-shares.”
Boshi Consumer Innovation Fund Manager Xiao Ruijin also stated that 7 of the top ten companies in the US stock market are technology companies. The ten-year bull market in U.S. stocks is mainly driven by these high-growth technology companies. Driven by heavyweight financial technology companies, more technology companies will be listed on the Science and Technology Innovation Board, and A-shares are also expected to usher in a slow bull market.
“Three to five years ago, China’s outstanding Internet companies could only go to US stocks or Hong Kong stocks.” A shares, rather than occurring in overseas markets, are a sign of the maturity of the national economy and A shares.
Previously, the Financial Association reported that six of the world’s top sovereign funds participated in the strategic placement of Ant’s A shares, including Abu Dhabi Investment Authority, Singapore Government Investment Corporation, Canadian Pension Fund Investment Corporation, Temasek, etc. The world’s best long-term funds have used Ant IPO to hold A shares.
This article is from WeChat official account: Cailian Press (ID: cailianpress), author: Jiang Fan