The private placement of listed companies is a two-way choice between companies and institutions. Some companies are crowded with institutions and institutions "queued up" to subscribe, while others failed to complete the expected amount of private placement. How has the A-share market increased in the since the beginning of this year? Which industries are sought after by institutions? Which industries are cold?
According to Oriental Fortune Choice data, since the beginning of this year, the number and scale of private placements completed by A-share listed companies have increased compared with the same period last year. Among them, 227 private placements were completed from January 1 to October 20, 2020, with a total scale of 626.5 billion yuan, while 179 private placements were completed in the same period of 2019, with a total scale of 546.9 billion yuan. The number and scale of private placements completed this year have increased by 27% and 15% year-on-year respectively. (Note: Including issuance of shares to purchase assets and financing)
Source: Oriental Fortune Choice Data
Basic chemicals, national defense and equipment are sought after
From the perspective of Dongcai industry, a total of 26 industries have completed private placement this year, 24 in the same period last year. Among them, since 2020, the basic chemical, electronic equipment, information technology, mechanical equipment, pharmaceutical and biological and electrical equipment industries have completed 29, 21, 21, 20, 17 and 13 private placements respectively, ranking in the top six; if we look at the number of increases year-on-year, basic chemical, pharmaceutical and biological, finance, electronic equipment, electrical equipment, and national defense and equipment have increased by 14, 7, 6, 5, 5 and 5 respectively compared with the same period last year.
Basic Chemical is the industry with the most increasing number of times, from 15 to 29 times. However, the scale of its private placement has dropped from 67.7 billion yuan in the same period in 2019 to 37.4 billion yuan since the beginning of this year, a decrease of 45%. Wanhua Chemical's private placement scale of up to 52.2 billion last year has a great impact on this. If Wanhua Chemical excludes it, the basic chemical industry completed a private placement scale of only 15.5 billion yuan in the same period last year, less than the 37.4 billion yuan since the beginning of this year.
Since this year, the largest scale of private placement in the basic chemical industry has been Rongsheng Petrochemical 8 billion yuan, followed by Jiangsu Sop 3.7 billion yuan and Oriental Shenghong 3.6 billion yuan.
data shows that Rongsheng Petrochemical is mainly engaged in the research, development, production and sales of various petrochemical and chemical fiber products. The products mainly include more than 30 categories such as olefins and their downstream, aromatics and their downstream, gasoline, diesel, refined terephthalic acid (PTA), and polyester (PET) slices.
In March last year, Rongsheng Petrochemical disclosed the plan for a private placement, which was then approved by the China Securities Regulatory Commission at the beginning of this year and disclosed the listing announcement of the new shares on October 9 this year. It took a year and a half to complete the private placement. It finally issued 459 million shares at 17.42 yuan per share, with a total amount of funds raised reaching 8 billion yuan. Subscribers include 19 institutions and individual investors including Hui'an Fund, Caitong Fund, Fenhua Investment, and Bank of Communications Schroder Fund.
It is understood that Rongsheng Petrochemical will use the raised funds for the second phase of the 40 million tons/year refining and chemical integration project of Zhejiang Petrochemical Co., Ltd. At the same time, the newly added shares have been listed on the Shenzhen Stock Exchange on October 12. All shares subscribed by the issuing targets shall not be transferred within 6 months from the date of listing of the newly added shares.
As of the close of October 20, the share price of Rongsheng Petrochemical fell 1.41% to 19.53 yuan per share, with a total market value of 131.8 billion yuan.
The defense and equipment industry has increased from 0 private placements to 5 today, and the amount has also increased from 0 to 61.3 billion yuan. Among them, China Ship has successively completed private placements of 37.4 billion yuan and 3.9 billion yuan this year, and 37.4 billion yuan is also the largest of all private placements implemented since this year. The implementation of private placement of listed companies in the national defense and equipment industry also includes China Power, Aero Engine Power and China Coast Defense, which completed private placement scales of 9.4 billion yuan, 8.5 billion yuan and 2.1 billion yuan respectively.
data shows that China Ship completed the issuance of shares to purchase assets and support financing in April and August this year, with a scale of 37.4 billion yuan and 3.9 billion yuan respectively. Among them, China Shipbuilding issued 2.844 billion shares at 13.14 yuan per share. China Shipbuilding Group, China Shipbuilding Investment, ICBC Investment, Huarong Ruitong, Xinhua Insurance, China Shipbuilding Defense and other institutions participated in the subscription with their 100% equity in Jiangnan Shipbuilding, 36.27% equity in Waigaoqiao Shipbuilding, 21.46% equity in China Shipbuilding, 51% equity in Guangchuan International and 30.98% equity in Huangpu Wenchong. The appraised value of the above-mentioned target assets is approximately 37.4 billion yuan.
Subsequently, China Ship issued 250 million shares at a price of 15.44 yuan per share, with a total amount of funds raised to 3.867 billion yuan. The funds raised will be used for the capacity building project of Guangzhou Ship International small and medium-sized luxury passenger and roulette ships, Guangzhou Ship International Intelligent Manufacturing Project, etc., and to supplement the company's working capital.
As of the close of October 20, the share price of China Shipbuilding rose 0.27% to 18.70 yuan per share, with a total market value of 83.63 billion yuan.
In addition, in terms of the scale of the private placement, the top six industries are finance 88 billion yuan, national defense and equipment 61.3 billion yuan, electronic equipment 55.2 billion yuan, utilities 55 billion yuan, electrical equipment 48.3 billion yuan and pharmaceutical and biological 42.3 billion yuan. The top six in the same period in 2019 were basic chemical industry 67.7 billion yuan, pharmaceutical and biological 64.3 billion yuan, finance 49 billion yuan, food and beverage 44.3 billion yuan, non-ferrous metals 33.6 billion yuan and utility 32.4 billion yuan.
From the perspective of scale growth, the top six industries with fast growth in the scale of private placement are national defense and equipment, electrical equipment, finance, electronic equipment, utilities and transportation equipment. The scale of the above industries has increased by 61.3 billion yuan, 40.4 billion yuan, 39 billion yuan, 33.9 billion yuan, 22.6 billion yuan and 21.7 billion yuan respectively this year compared with the same period last year.
Food and Media Cold
Among the 26 industries that completed the private placement this year, the number of private placement in 7 industries has decreased compared with the same period last year, namely food and beverage, non-ferrous metals, the Internet, cultural media, fossil energy, agriculture, forestry, animal husbandry and fishery and steel. The above industries have decreased by 7 times, 5 times, 4 times, 3 times, 3 times, 2 times and 1 times respectively. Among them, food and beverages have dropped from 8 times in the same period last year to 1 time.
According to Oriental Fortune Choice data, the only listed company in the food and beverage industry to complete a private placement this year is Shuanghui Development .
data shows that Shuanghui Development disclosed its plan in May this year and completed a private placement of nearly 7 billion yuan in five months. It issued 145 million shares at a price of 48.15 yuan per share, with a total amount of funds raised about 7 billion yuan. Subscribers include 22 institutions including Beijing Xindian High-quality Enterprise Development Fund, Taikang Asset Asset Management Products, China Huarong Investment Management and other 22 institutions.
It is understood that the funds raised by this private placement will be used for broiler industrial capacity construction projects, pig breeding capacity construction projects, pig slaughtering and conditioning products technical transformation projects, etc., as well as to supplement the company's working capital.
Note: Screenshot from Shuanghui Development announcement
As of the close of October 20, the share price of Shuanghui Development rose 1.29%, closing at 50.88 yuan per share, with a total market value of 176.3 billion yuan.
From the perspective of the reduction in the scale of the private placement, the food and beverage industry has shrunk from 44.3 billion yuan last year to 7 billion yuan, with a scale of 37.3 billion yuan, also ranked first, followed by basic chemical industry, cultural media, the Internet, pharmaceutical and biology, steel and real estate. The scale of the private placement and reduction in these six industries is above 10 billion yuan, namely 30.3 billion yuan, 28.3 billion yuan, 27.8 billion yuan, 22 billion yuan, 13.9 billion yuan and 13.7 billion yuan respectively.
Among them, the scale of the private placement of Culture Media has been reduced from 28.8 billion yuan in the same period last year to 500 million yuan since the beginning of this year, and the number of private placements has been reduced from 4 to 1, with a scale of 28.3 billion yuan. According to Oriental Fortune Choice data, the only listed company in the cultural and media industry to complete a private placement this year is Kevin Education, which completed a private placement financing of approximately 472 million yuan in July this year, less than half of the estimated amount of 1 billion yuan.
Kevin Education's issuance price of this private placement was 4.73 yuan per share. As of the close of October 20, its stock price rose 0.52% to 5.77 yuan per share, with a total market value of 3.452 billion yuan.
Beijing News Shell Finance Reporter Xiao Wei Li Yunqi Editor Li Weijia Proofreading Li Xiangling
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