Xiaomi’s IPO is a surprise | 'Drawing' | Frozen capital is about HK$24 billion

As the first Hong Kong stocks unicorn company with same rights, Xiaomi’s IPO performance was slightly cold on the first day, and today it has a phenomenon of “drafting.” According to Hong Kong media reports, Xiaomi Group is closing today (margin) at noon. Japanese IPOs continued to be affected by the weak market conditions. CFSG and Phillips were pumped out (subscribing) by approximately HK$1.7 billion. 14 brokerage firms had borrowed more than HK$9.7 billion, equivalent to 3.06 times oversupply. Industrywide It is expected that Xiaomi will eventually purchase only about 5 to 10 times over, and frozen capital will be about HK$24 billion.

On June 25th, Xiaomi launched a public IPO. The IPO received HK$4.552 billion on the first day of the subscription and HK$2.398 billion was raised publicly in Hong Kong. The oversupply was only about 0.9 times. It was the first since the boom of the new economy in September last year. According to incomplete statistics, according to incomplete statistics, on June 26th, the top 10 securities companies, including CFSG, Yaocai Securities, Guotai Junan, Phillip Securities, and Emperor Securities, etc., were at least 59.44 for Xiaomi. Hundred million Hong Kong dollar margin funds (margin), raised nearly 2.4 billion Hong Kong dollars, 1.48 times over purchasing.

Before Xiaomi’s public offering, the high-net-worth client and retailer's subscription differentiation has been revealed. “First Line” once reported on the 22nd that one of Hong Kong’s largest Chinese securities brokers had set aside some 30 billion to 40 billion Hong Kong dollar credits for Ping An doctors. The result was a warm response from retail investors. The amount of exhibition is not enough, so this time for the millet IPO also set aside a few billion worth of HK$ margin. However, as of now, the subscription intention is less than 10%. This situation is rare in a large-scale IPO.

Xiaomi launched a two-day offer of shares showing the enthusiasm of the rich, retail cold. Even if there are Li Ka-shing, Ma Yun, Ma Huateng and many other super-rich 'platform', but retailers seem to lose enthusiasm for the Xiaomi IPO, Fengshen Group and other new stocks The scene did not repeat itself. This is inextricably linked to Xiaomi's valuation problem: Starting from the $100 billion U.S. dollar limit reached at the beginning of the year, the investment bank has set Xiaomi’s valuation at US$65 billion and RMB8.6 billion. Between the U.S. dollar and the estimated value of between 55 billion and 70 billion U.S. dollars that were disclosed by informed sources before the IPO, Xiaomi’s valuation has been declining all the way, and it has shrunk three times in only six months. But even with the current lower limit of US$55 billion, Some investors feel that they are expensive. First Financial has reported before Xiaomi launched the IPO that Xiaomi’s valuation is expensive and the amount of funds raised is very large. Coupled with the current high cost of using the margin expansion system, Xiaomi’s entire subscription process is not expected to increase. There will be a mad rush.

Lin Junyu, head of the research department of Shanghai Commercial Bank, said that the market had previously been unaware of the Xiaomi’s share offering. The bank would rather retain the funds and not remove them, resulting in the increase in interest rates. Now that the market has returned to the basics, interest rates have fallen back. However, he reminded that according to past practice, new shares In order to avoid prematurely locking up the funds, the investor usually enters into the subscription on the last day. It happens that Xiaomi’s subscription deadline (12 noon on the 28th) is approaching the end of the six-month period. Lin expects that the Hong Kong dollar interest rate will have the chance to be pumped up again for 1 month. The interest rate is increased to 2.2% or more.

With regard to the coldness of Xiaomi’s IPO, the industry’s attitude is optimistic. They believe that many investors will subscribe until the last minute, and Xiaomi will continue to show off tomorrow. It is believed that the subscription amount will increase by then.

2016 GoodChinaBrand | ICP: 12011751 | China Exports