Financial Services Association, May 24 (Reporter Gao Yanyun) The Beijing Stock Exchange has seen a resurgence of enthusiasm, with more than 170,000 investors and 100 billion dollars of capital competing for the first share in section 920 of the Beijing Stock Exchange.

On May 23, Wanda Bearing revealed the issuance results. The final number of new shares issued was 5 million shares, of which the final number of shares issued online was 4.75 million shares, the online subscription amount was 98.515 million yuan, the allocation ratio was 0.07%, the number of allotted accounts was 26,800; and the number of strategically placed shares was 250,000 shares. The number of valid online subscribers was 177,000, the number of valid subscriptions was 6.642 billion shares, the effective subscription amount was 137.748 billion yuan, and the valid online subscription multiplier was 1398.24 times.

The reason why Wanda Bearing is popular is related to several factors. First, the issuance of new shares on the Beijing Stock Exchange has been suspended for nearly two months, and the market has maintained a high level of attention to IPOs; second, Wanda Bearing is the first individual stock to be activated in the new code in section 920 of the Beijing Stock Exchange; third, the secondary market is picking up, surging in the 50 session of the Beijing Stock Exchange on May 23; fourth, investors have maintained a high level of enthusiasm for trading in the Beijing Stock Exchange..

The winning rate is as low as 7 out of 10,000

Wanda Bearing is the first new stock since the Beijing Stock Exchange launched the 920 section function on April 22. The stock code is “920002,” and it is also the first new stock issued by the Beijing Stock Exchange since April.

Looking at the winning rate, Wanda Bearing's online allocation ratio was 0.07%, which is lower than the previous IPO of Wuxi Dingbang. The online allocation ratio for this stock was 0.08%.

The issue price of Wanda Bearings was 20.74 yuan per share, and the price-earnings ratio was 14 times.

The total cost of this offering was $15.381,400 (before exercising the over-allotment option), and the total cost was $16.9094 million if the full exercise of the over-allotment option was $16.90,900, of which the sponsorship and underwriting fees were $10.162,600 (before exercising the over-allotment option), $11.687 million (if the full amount of the over-allotment option was exercised); audit and capital inspection fees were $3.394,300; attorney fees were $1,773,600; issuance fees and others were $50,900 (before exercising the over-allotment option) 440,000 yuan (if the full amount is exercised over-allotment option).

According to the announcement, Wanda Bearing's IPO sponsor and underwriting agency is CITIC Construction Investment Securities.

Beijing Stock Exchange has nearly 7 million investors

The active trend in the Beijing Stock Exchange's secondary market is clearly rising, which lays a good foundation for the primary IPO market.

On May 23, the Beijing Stock Exchange 50 surged 4.04%. Despite a correction in the afternoon, there was still a significant increase at the close. By the close, the Beijing Stock Exchange 50 had risen 1.68% and traded 8.243 billion yuan, an increase of 168.5% over the previous trading day. The previous day's turnover was 3.07 billion yuan.

On the same day, 241 individual stocks on the Beijing Stock Exchange were positive, accounting for 97.18%. Among them, 2 stocks rose 30%, namely Avite and Kaihua Materials. Huami New Materials rose 24.98%, while 9 stocks rose more than 10%.

Currently, the Beijing Stock Exchange has a large number of qualified investors.

On May 23, at an exchange event on the theme of “2024 Financial Street Forum Series - Capital Markets Empower New Productivity”, Sui Qiang, general manager of the Beijing Stock Exchange, explained that the Beijing Stock Exchange now has nearly 7 million qualified investors. Social security funds, insurance funds, and QFII have all entered the market, and more than 900 public funds have participated in market investment.

Since October of last year, the average daily market turnover is 8.54 billion yuan, a seven-fold increase from before the reform; the average daily turnover rate is 4.4%, an increase of 3.5 percentage points over before the reform, and currently remains around 2%.

Frozen amounts have repeatedly reached new highs

Investors have maintained a high level of enthusiasm for the Beijing Stock Exchange since last year.

There are many new players, and as a result, the winning rate continues to be low, and the scale of new funding remains high.

On March 29 this year, the Wuxi Dingbang IPO was launched. The allocation ratio for online investors was 0.08%, and the effective online subscription amount was 175.511 billion yuan; for Bawei shares, which was IPO on March 22, the online investor allocation ratio was 0.04%, and the effective online subscription amount was 113.653 billion yuan.

The Beijing Stock Exchange is focusing on expanding its investor base. In the “China Securities Regulatory Commission's Opinions on Building the Beijing Stock Exchange with High Quality”, it is easy to see a series of hard tricks to expand the Beijing Stock Exchange's investor base, strengthen the power of buyers in the market, and improve market liquidity.

Financial strength is an important factor for the Beijing Stock Exchange to break new ground

Investors should be aware that the Beijing Stock Exchange's IPO capital is distributed on a pro rata basis, making it difficult for investors with smaller capital to obtain larger IPO placements.

According to the “Administrative Rules on Issuance and Underwriting of Securities on the Beijing Stock Exchange”, there are two rules relating to retail investors getting new.

First, investors shall, in accordance with the requirements of the issuer and lead underwriter, pay the full amount of the subscription funds, pay the subscription deposit, or participate in the subscription by other means at the time of purchase. Interest from frozen funds is transferred to the Securities Investor Protection Fund by the Beijing Branch of China Securities Registration and Settlement Co., Ltd. in accordance with relevant regulations.

Second, when the total number of active subscriptions by online investors is greater than the number of online issuances, the number of shares each investor receives for placement is calculated based on the ratio between the number of online issuances and the total number of active subscriptions. Of these, the portion with less than 100 shares will be distributed to each investor in sequence according to the principle of prioritizing the number of subscriptions and the same amount of time, until there are no remaining shares.

Overall, the winning rules are ranked in order of proportional placement priority, number of subscriptions first, and time priority. This means that the winning result is entirely determined by the distribution of funds participating in the subscription. If you calculate 100 shares won in the first round, according to the formula of issue price x 100 ÷ winning rate, many recent Beijing Stock Exchange IPOs need to prepare one million dollars to participate in the subscription.

After the first round of allocations is over, there may be remaining fractional shares. Since split shares follow the rule of capital priority, all purchasers are distributed according to the number of subscriptions. Purchases with large capital are basically a must, while investors with small capital are backwards.