On the evening of June 15, the Securities Regulatory Commission issued a news that Xiaomi’s issuance of China Depositary Receipts will be reviewed in the work conference of the 88th Issuance Review Committee held in 2018 today. June 19 is also the first working day after the Dragon Boat Festival holiday. From the first submission of the CDR issuance application to the last meeting, Xiaomi spent only 12 days, and the former Industrial Fushun that was previously considered to be the lightning conference spent a total of 35 days from the first submission of the IPO application to the previous meeting.
If Xiaomi succeeds today and becomes the first player in the CDR issuance, it will set a number of precedents in the history of A-share IPOs. For example, if the company's equity structure contains AB shares with inconsistent voting rights, the VIE structure is not dismantled, and CDR+Hong Kong stocks are used as IPOs.
Millet lightning on the 12th meeting
On the evening of June 15, the Securities Regulatory Commission issued a report that Xiaomi’s issuance of the China Depositary Receipt (CDR) will be reviewed during the work meeting of the 88th Issuance Review Committee of 2018 held on June 19.
On June 7, Xiaomi submitted the CDR issuance application for the first time. This means that from the first submission of the CDR issuance application to the formal meeting, Xiaomi only experienced a total of 12 days, which was previously considered by the It took a total of 35 days from the first submission of the IPO application to the previous meeting.
According to statistics from Wind, among the nearly 280 IPO companies currently queuing, only 4 companies first announced their prospectuses for the first time this year. There were 274 companies that first announced their prospectuses between 2012 and 2017. The first announcement of the three companies was a prospectus before 2012.
On June 14, the appraisal committee issued feedback on Xiaomi’s initial application, listing a total of 84 questions with a word count of over 20,000 words. From all aspects, Xiaomi’s CDR was strictly inquired.
From the recent series of regulations issued by the China Securities Regulatory Commission and the Shanghai and Shenzhen Stock Exchanges for innovative companies to issue shares and CDRs, they have tightened restrictions on the reduction of innovative companies, strengthened supervision and control of the actual controllers, and supervisors, and realized profitability in the company. In addition, the policy also strengthens information disclosure and risk warnings of innovative companies.
Or will create a number of first in the history of A shares
If the meeting goes smoothly today, Xiaomi will set a number of precedents in the history of A-share IPOs, such as the AB shares with inconsistent voting rights in the company's shareholding structure, the dismantling of the VIE structure, and the IPO of CDR+Hong Kong stocks.
If there is a meeting, how much will Xiaomi CDR's financing scale be?
On June 14, the Securities and Futures Commission disclosed an updated version of Xiaomi's CDR prospectus. Xiaomi’s CDR’s issuance size corresponds to a ratio of 7% of the basic shares of the CDR to the total share capital of the Hong Kong stocks after issuance, and this time the CDR is issued. The corresponding basic shares account for not less than 50% of the total size of CDRs and Hong Kong stocks.
Based on the 7% and 50% ratios, a number of sellers' organizations currently analyze that Xiaomi's CDR will be worth 30 billion yuan. In the history of A-shares, this initial financing scale will enter the top 10. , and is expected to surpass Guotai Junan, becoming the largest IPO fund-raising since 2011.
"Daily Economic News" reporter noted that at present some brokerage institutions are ready for the listing of Xiaomi. The new wealth analysts focused on Guotai Junan, GF Securities, Tianfeng Securities have released special research reports involving unique ' Millet pattern', millet industry chain etc.
A brokerage chief analyst of home appliances told the “Daily Economic News” reporter that, as in the past, BATJ’s subversion of the industry, Xiaomi will play the same role in certain industries in the future. There are still many whiteboard markets that it can occupy.