IPO Approval Is Coming Soon. The SFC Recommends That The Old Stocks Should Not Be Raised.

< p > a new batch of A shares IPO (initial public offering) is expected to be approved next week.

Market participants expect that the new IPO will still be issued at a low price.

This is because the China Securities Regulatory Commission has issued "window guidance" to issuers and underwriters. It is recommended that IPO companies should not raise funds and do not sell old stocks.

A head of the capital market department of the investment bank said to the Morning Post reporter: "it has completely returned to the era of" planned distribution ".

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< p > a company that has already reported the distribution plan told the Morning Post reporter in June 6th. The day before, it received the recommendation of the SFC, hoping to compress 50% of the proposed fund-raising amount. "This time, the SFC will directly communicate with us."

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< p > the company said the regulator told them that the high raise would raise the issuing price of the company, and the P / E ratio might be higher than the average level of the same industry.

The principle of prudential supervision may extend the issuing cycle of enterprises.

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< p > despite the compression of the 50% fund-raising amount or only the case, the information obtained by the Morning Post reporter from the investment bank is also: in order to ensure a smooth restart of the IPO, the regulators have passed the window guidance to the various IPO companies to send such a message. If there is a super raise or a large number of old shares pfer, the regulators will give priority to the IPO of the company.

"No one will be willing to make any mistakes in his own project."

A managing director of Shanghai investment bank said.

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< p > the head of the capital market department pointed out that the main concern of the SFC is that the issue price should not be too high and the amount of fundraising should not be too large. The principle is that it can not arouse widespread social controversy.

"For example," a href= "//www.sjfzxm.com/news/index_c.asp" > old shares /a > pfer, the SFC clearly stated that IPO is in principle the issue of new shares, not to pfer old shares to you. "

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< p > < < a href= > //www.sjfzxm.com/news/index_c.asp > > SFC < /a > window guidance. IPO issue will no longer require enquiry and roadshow.

"As long as the amount of capital raised plus the cost of issue is divided by the number of new shares to be issued, it is the issue price."

The person said that this phenomenon is indeed a general situation, then all the measures for the fourth issue reform of new shares, including the marketization measures of the third issue reform, have become a mere scrap of paper.

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< p > in order to promote the marketization of IPO, the fourth release reform program introduced new measures such as the old stock resale and the independent underwriter's independent placement.

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In late May, the SFC implemented the expected management of IPO for the first time. It clearly stated that only 100 IPO would be issued in the second half of the year.

To sum up, all the measures adopted by the SFC in recent years for IPO are to significantly reduce the scale of IPO fund-raising during the year.

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< p > before 2009, < a href= "//www.sjfzxm.com/news/index_c.asp" > A shares < /a > IPO basically followed the "window price" issue of the 20 times earnings ratio.

In the launch of the gem, the SFC issued the first way to reform the IPO system. The issue of marketization has become the thrust of reform, and the guidance price of the 20 fold window has also become history.

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Less than P, it is noteworthy that the trend of IPO's reversion and return to its origin is on the national strategic level, and it has clearly proposed that the IPO approval system should be changed to the registration system.

Xiao Gang, chairman of the securities and Futures Commission, has repeatedly made public proposals to complete the registration system reform in 2015.

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< p > the results of several "reforms" have proved that the system of half a person can not adapt to the objective environment of the capital market.

"It's better to move directly from the planned economy to the marketization registration system," one close to the regulator said.

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