'Depth' at the crossroads of the new three board company IPO

Withdrawing A shares and transferring to H shares?


It seems that overnight, the A-share IPOs queued up for the army to pull up the assembly number.

According to the data from the China Securities Regulatory Commission, 113 companies have voluntarily left the initial public offering (IPO) channel this year. Only on March 30, they created the highest record of 38 'material withdrawals' on a single day. The company where Liu Xi is located It is also a member of the retreat.

'Before or too optimistic, the policy changes too fast, the company needs to hone its strength'. Liu Xi is a board secretary of a new three board company, facing the 'major 8 in 5' (that is, for the IPO business, the board requires the net for the most recent year With more than 80 million profits and a GEM of no less than 50 million), he was under pressure from a new window.

Going south to the Hong Kong stocks, there seems to be one more choice for the IPO-minded new board companies.

Shortly after withdrawing the A-share IPO materials, Liu Xi received a visit from five intermediary agencies. The theme of the meeting was, without exception, the listing of listed companies on the Hong Kong Stock Exchange.

Corresponding to the strict supervision of the A shares, it is the most drastic changes in the Hong Kong stock market over the past 25 years. The attractiveness of the policy is also plucking the nerves of the new third-tier listed companies.

"The truth is that after withdrawing the IPO materials, the company is ready to develop its main business honestly. It does not think that the Hong Kong stock market is so simple, not to mention the tens of millions of intermediary costs. ' But Liu Xi also bluntly, In terms of market conditions on the three boards, 'I would like to give companies one more choice'.

Listed companies with new enthusiasm for listing are being dragged into the trend of strong regulatory oversight of the motherboard and changes in the Hong Kong stock market. They are hesitant at the crossroads of the IPO.

A stock tide retreat 'Philatelic' tragic 'Set Ray'

At the end of March, a new round of IPO on-site inspection work was conducted by the China Securities Regulatory Commission. It was confirmed by the interface news reporter that during the current round of inspection work, it was a high probability event that the supervisory level put forward higher requirements for the quality of IPO queuing companies.

According to brokerage investment bankers, the supervisory layer proposed in this round of inspections that an IPO queuing company that has a combined net profit of no more than 100 million yuan for the last three consecutive years or a net profit of no more than 50 million in the final year will be forced to opt out of materials or on-site inspections. In addition, the net profit of the companies to be listed on the main board should not be less than 80 million yuan in the most recent year, and the GEM should not be less than 50 million yuan.

'We received a window guidance as early as January and asked for IPO on-site inspection work. 'In view of the investment bankers of a large brokerage in Beijing, this round of inspection will continue the previous IPO on-site inspection style.

In the previous inspection process, the IPO withdraws from the company frequently, and after the new window guidance is issued, more companies will have difficulty retreating.

The China Securities Regulatory Commission also pointed out clearly in February this year that if IPOs are not allowed to be backdoors within three years, and that they will encounter key verifications when they are acquired, the IPOs of the newly appointed IPOs will find the IPO that the market seeks to resolve. The problem of the lagoon is being alleviated.

According to public information, 113 enterprises have terminated the IPO review in 2018, and another 13 companies suspended the IPO. The number of new board companies attempting to switch to the board accounted for more than 30%. A total of 36 new board companies stopped the IPO. In the state of 32, 4 companies were suspended for censorship. This is far higher than the 13 companies that had ceased censorship last year.



Looking at the number of listed companies that have listed counseling, 25 new and third board companies in the first four months of 2018 have started listing counseling. Benefiting from the normalization of IPO audits, a total of 363 new three board companies announced the listing guidance last year. The data is far from one another.

It is not only the company's fundamental review that has been tightened. The softness standards of queuing companies may also be within the scope of supervision.

For example, Jiahe Bio (833799), a new board company that recently announced the termination of its review, showed that the company’s net profit totaled RMB 205 million for the past three years, and its net profit for 2017 will reach RMB 95.22 million, which is in full compliance with the regulations raised by regulators. New assessment standards. On the other hand, since 2014, Jiahe Biotechnology has reported corrections for accounting errors in its annual report data. The 2017 semi-annual report also corrected the amount of multiple accounting accounts.

'As a non-listed public company, the new three board companies have different financial criteria and accounting treatments than the main board. The regulators also allow for minor modifications. However, frequent changes will cause the supervisory authorities to suspect that there are problems with the company's assets and revenue, in order to achieve a certain target. Financial 'buried mines' have a great impact on the company's IPO. 'A securities company investment bank in the western region said to the interface news.

Zhou Yunnan, founding partner of Nanshan Investment, remembers that in the first two years under the concept of 'IPO Philately', as long as the new third-tier companies with a net profit of more than 10 million in the previous year, all of them claimed that they would go to an IPO, and some of them officially started. The IPO program, even a few loss-making listed companies also announced that they are applying for listing counseling.

Zhou Yunnan said that the current emergence of new three-board 'IPO withdrawals' is actually the aftereffect of the 'new-leaf IPO' of the new third-tier companies from the second half of 2015 to 2017. The deeper reason is that the new three-board companies have IPO listing opportunities. Blindly optimistic with their own texture, caused by the listing difficulties and the lack of estimates of policy changes.

At the same time, Sanban Company's 'IPO Withdrawal Tide' also brought about the plunge of the corresponding company's stock price.

The resumption of IPO applications for the new three-plate companies, resumption of trading suffered a major decline. If the Bohui shares actively withdraw materials after the resumption of trading, the opening fell plunge 78%; Huacan telecommunications after the termination of the IPO resumption, the day closed down 68.36%. The “IPO Philatelic” Party, which has been selected for the new three-plate IPO company’s profitability, has become a “collection of mines” under the supervision of environmental changes.

The rise of the IPO's hidden threshold and the bitter consequences of the failure of the IPO made the New Third Board Company start to stop looking at the A-shares.

H-shares are brave enough to be brave

Not only are the listed companies and investors frustrated by changes in IPO policies, brokers and other intermediary agencies have lost their original opportunity to make money.

From Huantu Education to the H-shares on the new three boards, the eyes of these people began to shift to the Hong Kong market. From the New Third Board delisting to the Hong Kong Stock Exchange's official website disclosure of listing documents, Huatu Education took only 38 days.

According to the interface news, since the beginning of this year, activities and courses such as 'Hong Kong stocks listing and training' have been brushed at the board of directors of the New Third Board Company. Recently, a training activity held by an intermediary agency attracted nearly 50 new third board companies.

'We did not have to work hard to put the facts out. The companies with ideas naturally understand it.' said an investment bank personage in a certain stock market in Shanghai.

The investment bankers introduced the interface news reporters, and they advised the reasons for the listing of new board companies in Hong Kong mainly in the following points:

1. The domestic IPO policy has changed greatly, the listing standards have become more and more stringent, and strict supervision after listing is also the norm. It is more difficult to refinance mergers and acquisitions and recapitalization. 2. The company itself wants to be listed as soon as possible, compared with A shares, The Hong Kong stock market will undoubtedly be able to meet this demand. 3. The Hong Kong stock market itself has a very good situation and its valuation is steadily improving. 4. The new three board liquidity and valuation dilemma.

'I have come across our intermediaries for just a few rhetoric, but it is also true that the company has moved the idea of ​​the Hong Kong stock.' Said the new third board secretary who attended the above Hong Kong stocks listing training meeting.

However, it is not as beautiful as it sounds to delist after listing the new three boards.

At present, it is publicly known that enterprises operating in this way have only one case of Huatu Education. From the perspective of their previous listings, the four A-share IPOs have failed since 2012 and Huatu Education has been 'forced' into the Hong Kong market.

The advantages of listing in Hong Kong relative to the New Third Board need not be said. Higher liquidity, wider financing environment and wider international perspectives have all become the reasons why the three-board companies have turned to the Hong Kong stocks. Huatu Education even bluntly stated that The New Third Board 'difficult to discover and establish the fair value of the company to reflect our leading position in the industry and the competitive advantage that distinguishes us from our competitors'.

However, as a leading education company in the field of civil servants training, Huatu Education achieved a revenue of 2.24 billion yuan in 2017 and a net profit of 375 million yuan. The company's educational concepts and fundamentals are not comparable to those of the general New Third Board Company.

A secretary of the board of directors of the Beijing New Third Board stated that, regardless of how the company's performance is improved, the differences between the Mainland and the Hong Kong market in terms of accounting standards mean that the company needs to pay time and money to rectify it. After the agency fees, the subsequent maintenance costs are not low. For the current majority of the new three board companies can not afford.

'We as a new economic company also want to list in Hong Kong, but now companies are more concerned about the three board market has not improved, want to learn more about the rules of listing Hong Kong stocks, one more choice, the actual action is not necessarily. 'The company Dong Secret expression.

Many investment bankers also frankly stated that it is more in line with the interests of enterprises to list in China.

'Domestic brokerage firms cannot directly engage in Hong Kong stocks IPOs. It is recommended that companies listed in Hong Kong need to contact Hong Kong brokerage firms. The sponsorship fees will inevitably be divided, and the Hong Kong stock market listing fees will also be lower than in the mainland. 'The above Shanghai securities firm’s investment bank staff also stated that the companies are listed on A shares. Subsequent financing of mergers and acquisitions can also be contracted by themselves, making more profit.

Although the trip to Singapore by the New Third Board Company cannot be very smooth, the Hong Kong market reforms can not be ignored for the inland enterprises.

Sun Li, director of the company’s stock transfer system company, publicly stated this year that it will promote opening up and cooperation to achieve the same time that the listed companies will be listed on both the New Third Board and the overseas exchanges. According to the “21st Century Business Herald” news, the New Third Board + H-share work is accelerating.

'The new three board + H will not be released from the beginning. Even if it is released, there are not many companies that meet the standard. 'A new three-plate analyst in a securities company in Beijing said that in the face of the challenges of the Hong Kong stocks, the new three board needs more symbolic Relaxation to stabilize high-quality enterprises in the market. After all, comparing with the uncertainty and high cost of listing after listing in Hong Kong, the simultaneous listing of the two places is more in line with the interests of the company.