Dongxing Securities 4.5 billion fixed increase landed! 4 "retail investors" invested 600 million yuan in shares, and Galaxy and CITIC Securities settled in the top ten shareholders

On the 25th, Dongxing Securities announced the results of the fixed increase: 474 million shares, the issue price was 9.47 yuan (discounted by about 20%), and the capital raised was about 4.5 billion yuan.

Among the 14 investors of Dongxing Securities, 4 individual investors spent 625 million yuan to enter the shareholder Xingxing. In addition, the four peers of CITIC Securities, Shenwan Hongyuan, Galaxy Securities and Everbright Securities have also vigorously "held the scene" to participate in the shares. After the fixed increase, Galaxy Securities and CITIC Securities entered the ranks of the top ten shareholders of Dongxing Securities.

Dongxing Securities said that after the completion of the offering, the company's total assets and net assets have increased by a certain extent, and the asset-liability ratio and financial risks will be reduced. This offering will enhance the company's ability to resist risks, expand the growth space of the company's asset scale, optimize the company's asset-liability structure, and lay a solid foundation for the company's further development.

Galaxy Securities and CITIC Securities entered the top ten shareholders

Dongxing Securities announced that as of September 27, 2021, the non-public offering was co-directional  191 specific targets (including 41 investors who have submitted letters of intent to subscribe) delivered the invitation documents, including: the top 20 shareholders of the issuer (related parties have been excluded, duplicate institutions have not been excluded)  20  29 fund companies, 15 securities companies, 15 insurance institutions, 96 other institutions, 16 individual investors.

After the subscription, 14 investors were finally identified, of which 4 were individual investors. Wang Xianfeng and Lin Xiaomin each spent 200 million yuan into shares, Chen Chunjiu spent 125 million yuan into shares, and Hua Yiwei spent 100 million yuan into shares. The four individual investors have different geographical distributions, including Chongqing and Shanghai. Brokerage China reporter noted that in the previous increase in securities companies, there have also been cases of individual investors, such as Nanjing Securities.

In addition to individual investors, peers are also vying for shares in Dongxing Securities. CITIC Securities invested 223 million yuan in shares, Shenwan Hongyuan invested 200 million yuan in shares, Galaxy Securities invested 600 million shares, and Everbright Securities invested 210 million shares. After the completion of the fixed increase, Galaxy Securities held 1.97% of the shares of Dongxing Securities, ranking the fifth largest shareholder, and CITIC Securities held 0.73% of the shares of Dongxing Securities, ranking the tenth largest shareholder.

Brokerage China reporter noted that in the recent case of Guolian Securities fixed increase, there have also been cases of peer participation in shareholding. Six securities companies, including Galaxy Securities, Everbright Securities, CICC, Haitong Securities, Guotai Junan Securities and Xiangcai Securities, have all participated in the fixed increase of Guolian Securities.

A non-bank analyst of a large securities company told reporters: "Since the beginning of this year, buyer institutions generally do not want to see securities companies' stocks, and are not very willing to subscribe to the fixed increase of securities companies; securities companies are very optimistic about their own sections and are willing to subscribe to the fixed increase of peers." ”

In addition, the final fundraising amount of Dongxing Securities is 4.5 billion yuan, and its initial expected fundraising amount is not more than 7 billion yuan, and the full fundraising rate of funds is close to 65%. In the case of the fixed increase of securities companies since 2020, this fundraising rate is not high. Previously, the 7.5 billion fixed increase of Western Securities, the 15 billion fixed increase of Guosen Securities, the 20 billion fixed increase of Haitong Securities, and the 13.5 billion fixed increase of CITIC Securities were all 100% fully fund-raising.

Dongxing Securities said that the funds raised in this non-public offering will be used to expand the scale of investment transaction business, expand the scale of financing and margin business, increase investment in subsidiaries, and other working capital arrangements, and the use of the raised funds is in line with the relevant national industrial policies and the company's future development strategy. This non-public offering will not lead to a change in the direction of the company's main business and will not adversely affect the company's main business scope and business structure.

Dongxing Securities intends to participate in New Era Securities

In early October, Dongxing Securities announced that Dongxing Securities and China Chengtong Holding Group Co., Ltd. (hereinafter referred to as "China Chengtong") intended to jointly transfer 2.859 billion shares (98.24% of the shares) of New Era Securities listed on the Beijing Equity Exchange through public delisting. Among them, Dongxing Securities intends to invest with its own funds to obtain 34.385% of the equity of New Era Securities.

According to the information of the Beijing Equity Exchange, the reserve price of the 98.24% equity transfer of New Era Securities was 13.135 billion yuan. Based on this, it can be inferred that the market value of 34.385% equity of New Era Securities is at least about 4.6 billion yuan. Dongxing Securities is scheduled to raise about 4.5 billion yuan. According to the semi-annual report of Dongxing Securities, as of the end of the first half of the year, the total equity of owners of Dongxing Securities was 21.254 billion yuan.

As for the reasons for participating in the shares, Dongxing Securities said that this is an important measure for the company to participate in resolving financial risks and maintaining financial stability. As an asset management company (AMC) securities company, the company strategically proposes to deeply coordinate with the main business of non-performing assets of China Orient Asset Management Co., Ltd., seize opportunities such as corporate bailouts, mergers and acquisitions of listed companies, and develop differentiated competitiveness.

According to the requirements of the Beijing Equity Exchange, 17:00 on October 19 is the deadline for the announcement of the listing of the New Era Securities Equity Transfer Project, and the intended investors need to complete the submission of information and the payment of the margin before the above time.

Brokerage China reporter learned that at present, the intended buyers, including Dongxing Securities, have submitted relevant information in accordance with the requirements, completed the payment of the deposit, and entered the next stage of the project intention to acquire. Western Securities, which also previously said that it acquired the equity of New Era Securities, withdrew from the acquisition.