The Regulatory Authorities Hit Hard And Pointed To The Unreasonable Inquiry Phenomenon: The IPO Price Reduction Phenomenon Has Improved

Since July, the regulatory authorities have frequently dealt with the pricing problems of new shares such as "group bidding" which are concerned by the market.

First, the Shanghai Stock Exchange gave regulatory warning to six asset management institutions, and then the China Securities Association also took self-discipline measures against 11 quotation institutions. On August 6, the China Securities Regulatory Commission (CSRC) referred to "group quotation", revised some provisions of the special provisions on the issuance and underwriting of initial public offering securities on the growth enterprise market (hereinafter referred to as the special provisions), and solicited opinions from the public.

In the face of heavy pressure from the regulatory authorities, has the "group" behavior of the IPO inquiry market improved?

According to wind data collected by 21st century economic reporter, as of August 16, 21 new shares have been issued since August, including 15 new shares issued under the registration system (growth enterprise market and science and technology innovation board), with an average p / E ratio of 40 times. Among them, 8 new shares have a P / E ratio of more than 23 times, accounting for more than 50%, Compared with July's price earnings ratio of more than 23 times, the proportion of new shares accounted for less than 40%.

In addition, the situation of "high concentration of quotation", which has been criticized earlier, has also improved.

Wind data shows that since August, there are 12 registered enterprises that have disclosed the preliminary inquiry details. According to the inquiry data of these 12 new stocks, the reporter found that the quotations of the 12 stocks were relatively scattered, and only one enterprise had the highest price of concentration (that is, the quotation of the highest frequency given by the institution), The final issue price of most enterprises (10) is not the top ten price with the highest concentration; The number of declared prices of enterprises is more than 32, and the most declared price of Haitian Ruisheng is 96.

"In the special provisions of the CSRC, it is proposed to cancel the requirement of linking the IPO pricing of the gem with the subscription arrangement, and delete the relevant provisions on the range of the issuance price of the accumulated bidding inquiry. On the whole, the revised content is more cautious. Although the expected effect is limited, it still has a certain deterrent to the unreasonable inquiry behavior in the IPO of registration system. " On August 16, a person from the investment banking department of a medium-sized securities firm in Shanghai pointed out.

Since July, the regulatory authorities have frequently dealt with the pricing problems of new shares such as "group bidding" which are concerned by the market- Visual China

Regulators crack down on "group bidding"

With the continuous operation of the market-oriented inquiry mechanism, the issuing price of new shares under the registration system is undergoing significant differentiation, and the endless low-cost issuance has aroused more and more attention and thinking in the market.

Earlier, according to the wind data collected by the 21st century economic reporter, it was found that during the period from January to early July this year, 190 reporting enterprises under the registration system completed the online issuance, and the issuing situation was "double hot". Many enterprises continued to "break down" in issuing prices and were suspected to be significantly depressed by institutions.

Among them, as many as 159 enterprises failed to fully raise funds through IPO, accounting for more than 80%. Among them, 90 enterprises issued P / E ratio less than 23 times. From January to early July 2021, the proportion of enterprises with P / E ratio lower than 23 times was as high as 47.37%. Before that, enterprises with P / E ratio lower than 23 times in 2019 and 2020 accounted for 1.49% and 7.5% respectively.

From the inquiry situation of major "low price stocks", the trend of "low price" and "centralization" in the quotation of these enterprises is very obvious. A typical example is Zhengyuan Dixin, whose offline issuance has received the preliminary inquiry and quotation information of 10534 placing objects managed by 503 offline investors. After eliminating the invalid quotations, the quotation range is 1.97 yuan / share - 28.12 yuan / share, with 10 prices in total.

But strangely, in addition to the highest price of 28.12 yuan / share, the quotations of other 9 prices are concentrated below 3 yuan / share. Among them, the price of 1.97 yuan / share in this issue accounts for 93.58% of the total number of applications.

In terms of the types of inquiry objects, the upper and lower limits of the initial inquiry price of three types of investors, namely financial company, individual investor and securities company, are completely consistent with the price of 1.97 yuan / share issued in this round. In particular, there are 192 investors in securities companies, all of which have quoted 1.97 yuan / share. The highest price of 28.12 yuan / share was quoted by only two institutions, and both of them came from the same private equity company.

With the A-share market under the registration system, the "three low" new shares with low issuing price, low P / E ratio and low fund-raising amount have been born frequently. On the first day of listing, all the relevant stocks have been sought after by funds and their share prices have doubled. The phenomenon of "group quotation" behind this contrast has aroused regulatory attention.

Wang Jiyue, a senior investment banker, said that on the one hand, the amendment of the "special provisions" reflects the regulatory concern on the issue of new share pricing under the registration system, on the other hand, it does not change the overall trend of new share pricing, and is more cautious in revising“ It will increase the game space, and the quotation may not be so centralized. "

"Group quotation" improved

From the IPO inquiry situation since August, the situation of group price reduction has improved.

The 21st century economic reporter has counted 15 new shares issued under the registration system since August. The data show that they have raised 20.8 billion yuan in total, of which 4 companies have over raised and 8 have not fully raised funds, accounting for about 53%, which is significantly lower than that in the first seven months of this year (more than 80% of enterprises failed to raise funds in full from January to the first ten days of July this year).

The average price earnings ratio of these new stocks is 40 times, and the median price earnings ratio is 24.94 times. From January to the first ten days of July 2021, the average price earnings ratio of IPO enterprises under the registration system is about 30.55 times, and the median price earnings ratio is 23.44 times. Among them, Ai Wei Electronics, one stone, Pulan shares and other enterprises issued P / E ratio is much higher than the industry average.

However, some companies, such as Yiqiao Shenzhou and Haitian Ruisheng, have lower P / E ratios than the industry average. In the view of insiders, IPO pricing is affected by market environment, industry recognition by the capital market and the quality of the enterprise itself.

Li Jiwen, director of Shihe gene, told reporters of the 21st century economic report that at present, the pricing of new shares is more related to the secondary market. "The price of concept stocks is on the rise in the market, but there are also companies whose share prices and P / E ratios are constantly falling. An important chapter of the IPO prospectus is "comparable companies". All the novelty makers, including inquiry agencies, can see the current P / E ratio of comparable companies at a glance. Some comparable listed companies rank in the industry even before the companies to be issued, but the P / E ratio is 20 times or less. How can inquiry institutions quote high prices? "

From another dimension, with the frequent attacks of regulators, the phenomenon of "group bidding" is also improving. The reporter has made statistics on the preliminary inquiry of 12 registered new shares disclosed on wind data since August, and found that the quotations of these stocks are relatively scattered.

First of all, the number of declared prices given by institutions participating in the inquiry is 32 or more. Among the 11447 quotations received by Haitian Ruisheng, 96 of them are included. The price with the highest concentration is 37.20 yuan / share, slightly higher than the final issuance price (36.94 yuan / share) determined by the company. A total of 1842 placing objects have given this price, involving 65 institutions.

On the whole, the situation that the price of the highest concentration and the final issue price of these 12 new stocks only happened to yue'an new material, whose issuing price was 11.76 yuan / share. Among them, 6597 allotment objects gave this price, accounting for 56% of the total allotment objects.

In addition, the number of placing objects with the highest concentration price accounted for less than 60% of the total number, and only four new shares accounted for more than 50%. Among them, the one with the lowest proportion and the most dispersed quotation was thunder and lightning micro force, whose 9488 placing objects gave a total of 72 declared prices, of which 1167 were given a price of 60.75 yuan per share (that is, the highest concentration price of the stock), The final issue price of the company is 60.64 yuan / share, and the price earnings ratio is 50.33 times, slightly higher than the average price earnings ratio of the industry of 45.88 times.