Under the registration system, the issue price of 2 companies breaks through the "four values" and the lower value is expected to be followed by more companies to "follow suit"

Source: Securities Daily

Reporter Wu Xiaolu

On October 7, Yum Intelligent issued a listing announcement, the company's issue price is 9.08 yuan / share, more than the "four values" of the low value (8.7557 yuan / share), more than the range of 3.70%.

According to the reporter, this is the second company whose issue price exceeds the low value of the "four values" since the release of the new regulations on the science and technology innovation board and the ChiNext board on September 18, and it is also the second company to break through the low value of the "four values" since the reform of the registration system. The industry believes that this reflects the significant increase in the degree of marketization of new stock issuance under the registration system.

"From a practical point of view, since the promulgation and implementation of the new regulations, the overall issue price of companies using the new prescribed price has been more reasonable, which can fully meet the investment needs of investors and better meet the fundraising needs of issuers, and compress the space for some subscription institutions to arbitrage through malicious quotations, effectively cracking down on 'group quotations'." Chen Li, chief economist of Chuancai Securities and director of the research institute, said in an interview with the Securities Daily reporter.

Issue price of 2 companies

Exceeds the lower value of "four values"

On September 18, the Csrc led the Shanghai and Shenzhen Exchanges to optimize the pricing rules for the issuance of new shares on the Science and Technology Innovation Board and the ChiNext Board, and among the four-point revision and the three major initiatives, the most important content was two points: one was to adjust the exclusion ratio of high prices from no less than 10% to no more than 3%, and the initiative was not more than 3%, not less than 1%; the second was to relax the requirements of not exceeding the "four values" and lower values, and the proposal pricing exceeded the "four values" and the lower value, and the excess was not higher than 30%.

According to the announcement of listed companies, since September 19, as of October 8, before the reporter's press release, a total of 21 companies on the Science and Technology Innovation Board and the ChiNext Board have issued prospectus announcements, of which 19 are issued for inquiry and 3 are priced. The 19 companies all said in the inquiry and issuance announcement that the proportion of high price exclusion is not less than 1% of the total amount of all offline investors to subscribe.

For the 3 companies that choose to price the issuance, Zhang Lei, a member of the executive committee of Huatai United Securities, told the Securities Daily reporter that during the transition period of the implementation of the new regulations, the choice of pricing issuance by enterprises can reduce uncertainty and complete the issuance as soon as possible.

In the previous issuance and underwriting rules of the Sci-Tech Innovation Board and the ChiNext Board, if the issue price exceeds the lower value of the "four values", it is necessary to issue different numbers of risk warning announcements according to the exceeding range. According to the reporter's understanding, due to the time cost of issuance and regulatory orientation, in practice, the issue price of the science and technology innovation board and the ChiNext board under the registration system has not exceeded the "four values". Since the implementation of the new regulations, listed companies have been able to reasonably price according to their own true value and raise the funds needed for development.

As of October 8, before the reporter's press release, among the above 19 inquiry issuing companies, 3 companies issued listing announcements, of which the issue price of high-speed rail electric and Yum intelligent 2 companies exceeded the lower value of the "four values", and the issue price of high-speed rail electric was 7.18 yuan / share, exceeding the range of 1.13%.

"In practice, the occurrence of a company's issue price exceeding the 'four values' or lower value means that the new rules on the pricing of new shares have achieved remarkable results, making the issue price more able to reflect the true value of the company." For listed companies, the reasonable price of the offering will enable listed companies to raise enough funds for development and expansion, especially for high-speed development of science and technology enterprises. Chen Li said.

Zhang Lei believes that under the registration system, the emergence of companies with an issue price exceeding the "four values" or lower value is first of all a major progress in market-oriented issuance; secondly, from the perspective of the increase in the issue price, the range of 1.13% and 3.7% is not high, indicating that the degree of marketization needs to be further improved, and the future can continue to work in the direction of full marketization. It is expected that more companies will issue prices that exceed the lower of the "four values".

The situation of group quotations has improved

"Heavy research" will become the trend of the times

From the perspective of institutional quotations, since the implementation of the new regulations, the concentration of institutional quotations has also decreased.

According to iFinD data, as of October 8, before the reporter's press release, since September 19, 8 science and technology innovation board and ChiNext companies have completed inquiries, according to the concentration of institutional quotations, the number of single quotations accounts for the highest than 50% of 3, the highest is 60%, and the concentration of single quotations of many new stocks has exceeded 90%.

Chen Li said that from the recent IPO issuance, the "group quotation" behavior has been significantly rectified, and the extreme quotation situation has been significantly reduced. Overall, the phenomenon of "group quotations" will be further curbed in the future, and the issue price of new shares will be more reasonable.

Zhang Lei said that the phenomenon of "group quotations" has decreased, but it has not yet been determined to be eliminated. When talking about how to further optimize the pricing method and enhance the degree of marketization of new stock issuance in the later stage, Zhang Lei believes that the most effective is to further relax the proportion of breaking through the "four values" and the lower value.

"Previously, the pricing of new stock issuance was more inclined to 'heavy routine, light research', and the inquiry agency was able to achieve arbitrage under the condition of lower risk in the case of lower issue price, and this model will be changed after the implementation of the new rules on new stock issuance pricing." Heavy research will become a general trend, and the inquiry institution will no longer blindly lower the issue price, but through its own research, give a reasonable quotation to new shares, realize its own investment income through research, and it is more conducive to guiding the correct concept of value investment. Chen Li further said.