On the evening of February 9, the much-anticipated China Mobile disclosed the results of the "Green Shoe".
According to the announcement, as of the expiration of the stabilization period (January 5 to February 7), the joint lead underwriter CICC purchased 69.7871 million shares of China Mobile through the over-allotment option (referred to as "Green Shoes"), corresponding to an amount of 4.018 billion yuan, and the purchase price was equivalent to the issue price of 57.58 yuan per share.
What has attracted much attention is that since the failure of the "green shoe" on February 8, China Mobile's stock price has not fallen but has risen, rising by 16% in the past two days, and the latest closing price has refreshed the new high since the listing. In the process of China Mobile's recent stock price surge, a number of leading securities companies such as CITIC Securities and CICC have collectively sung more.
CICC bought 69.78 million shares through "Green Shoes"
On the evening of February 9, China Mobile disclosed the Announcement on the Implementation Results of the Over-allotment Option for the Initial Public Offering of A-shares.
China Mobile discloses the results of the implementation of the over-allotment option
According to the announcement, during the post-market stability period of China Mobile's offering (that is, from January 5, 2022 to February 7, 2022), China International Capital Corporation Limited (hereinafter referred to as "CICC"), the joint lead underwriter of the green shoe operation, used the funds obtained from the over-allotment to purchase a total of 69.7871 million shares of the company's shares from the secondary market in auction transactions, corresponding to an amount of 4.018 billion yuan, and the purchase price was equivalent to the issue price of 57.58 yuan per share.
Excerpted from China Mobile announcement
According to public information, China Mobile's A-share IPO green shoe mechanism, according to the issue price of 57.58 yuan per share, over-placed 126.855 million shares to online investors, accounting for about 15.00% of the initial number of issued shares. The over-allotment of shares was obtained by way of deferred delivery to the strategic investors in this offering.
In the end, China Mobile issued 903 million shares of A-share issue, of which 422 million shares were placed to strategic investors, accounting for 46.75% of the final number of shares issued, 115 million shares were placed to offline investors, accounting for 12.68% of the final number of shares issued, and 366 million shares were placed to online investors, accounting for 40.57% of the final number of shares issued.
China Mobile said that the net amount of funds raised in the exercise of the "Green Shoe" additional issuance of shares was 3.252 billion yuan, and the final net change of funds raised in this offering was 51.374 billion yuan. All the funds raised will be used for China Mobile's 5G boutique network construction project, cloud resources new infrastructure construction project, Gigabit Zhijia construction project, smart middle platform construction project, new generation information technology research and development and digital intelligence ecological construction project.
At one point, it was on the verge of a break
In the past two days, the "miracle" has risen sharply
The over-allotment option, also known as the "green shoe", refers to an option granted by the issuer to the lead underwriter to stabilize the stock price trend after the listing of the large-cap stock and prevent the stock price from fluctuating.
According to the Administrative Measures for the Issuance and Underwriting of Securities, if the number of shares in an initial public offering is more than 400 million shares, the issuer and the lead underwriter may adopt the over-allotment option in the issuance plan. The implementation of the over-allotment option shall comply with the provisions of the China Securities Regulatory Commission, the stock exchange, the securities registration and settlement agency and the Securities Association of China.
Looking back at the trend of China Mobile after the A-share listing, the "green shoe" mechanism has largely maintained the stability of the stock price. During the "Green Shoe" exercise period from January 5 to February 7, in addition to the fluctuations on the first day of listing, China Mobile's stock price showed a narrow range for the vast majority of the time, and did not fall below the issue price of 57.58 yuan.
China Mobile post-listing trend
After the failure of the "green shoe" on February 8, China Mobile's stock price did not fall but rose. Following the 5.42% increase on February 8, China Mobile's stock price today was even more rewarded, with a volume of 3.334 billion yuan traded throughout the day. As of today's close, China Mobile's latest price was 67.43 yuan / share, a new high since its listing.
Head brokers collectively sing more
This week, CITIC Securities, CICC and other leading securities companies released China Mobile stock research reports, focusing on the company's stock price prospects.
Huang Yayuan, chief analyst of CITIC Securities Communications, said that China Mobile is the world's leading operator, with the world's largest communication network, and the number of mobile and broadband users ranks first in the world.
From the perspective of the industry, the company, as the leader of global operators, has a stable position, user scale and network resources have significant advantages; from a financial point of view, the company's profitability is outstanding, emerging business development is good, ARPU value (average revenue per user) continues to increase, long-term growth can be expected; from the valuation point of view, the company's high-quality assets are bonused, cash flow is abundant, the current valuation is still at a historical low, and the investment value is prominent.
CITIC Securities believes that China Mobile is a high-quality core asset with both technology and consumption attributes, and the growth logic of the 5G era is reconstructed, which is of great allocation value.
CITIC Securities believes China Mobile is "extremely valuable for allocation"
CICC believes that China Mobile has the advantage of cloud-network integration, the production and mutual business is expected to become the core growth engine in the next five years, the increase in 5G penetration rate drives the ARPU value to stabilize and recover, and the potential catalyst is the rapid development of industrial Internet business driven by 5G.
CICC expects China Mobile's EPS (earnings per share) from 2021 to 2023 to be 5.40 yuan, 5.88 yuan and 6.55 yuan respectively, with a compound growth rate of 10.1%. Based on the divisional summation method, the company's target market value was calculated to be 1,727 billion yuan, and for the first time, China Mobile's A-share "outperformed industry" rating was given, and the target price was 81.00 yuan / share.
However, it is worth mentioning that CITIC Securities and CICC are both underwriters of China Mobile's A-share IPO. According to the data, the joint sponsors (lead underwriters) of China Mobile's A-share IPO are CICC and CITIC Securities, and the joint lead underwriters are CITIC Construction Investment Securities, Huatai United Securities, BOCI Securities and China Merchants Securities.
Editor: Zhu Yin
Proofreader: Feng Wenjun
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Editor-in-charge: Zhang Xiaoguang
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Issued: Pan Linqing