1. Wencan Group raised 1 billion yuan through private offering, which has ranked it among the top 20 listed companies before private offering. 2. Six public funds contributed half of the total amount raised, reducing the profitability. 3. Among the 56 listed companies that completed private offering this year, the total fundraising did not exceed 1/3 of the same period in the past three years, and the number of listed companies that completed private offering did not reach half of the same period in the past three years. 4.
Finance Association, July 12th. (Reporter Feng Qijuan) Wencan Group, a stock of automobile parts, completed its first round of private offering after going public, with a total actual fundraising amount slightly exceeding 1 billion yuan, also ranking among the top 20 listed companies that completed private offering this year.
According to the latest announcement, Wencan Group issued a total of 44.2145 million shares at a price of 23.68 yuan, with a total fundraising of 1.047 billion yuan, and plans to use it for Anhui, Chongqing, Foshan, intelligent manufacturing projects for new energy vehicles and supplementary working capital. Wencan Group initially planned to raise 35 yuan, and on May 20th of this year, the announcement stated that the amount raised will be adjusted to 1.3 billion yuan. Nevertheless, due to the fact that the amount of effective subscription and the number of effective subscription shares in the first round did not reach the prescribed upper limit, additional subscription was also launched during this period.
In this round of private offering, Hengjian Investment invested 0.25 billion yuan to obtain 10.5574 million shares and became the largest single subscriber. After the private offering shares are registered, Hengjian Investment will be listed among the top ten shareholders of the stock with UBS AG. In addition, six public funds allocated half of the total amount raised to Wencan Group. Nord Fund, Caitong Fund, Yifangda, Penghua Fund, Huaxia Fund, and Yimi Fund were allocated a total of 22.2551 million shares, with a total investment of 0.527 billion yuan.
Among the subscribers are private equity firms that focus on investment in this area or industrial companies that are already in the automobile industry chain.
Although private offering is favored by public funds, as of the end of the first quarter, there are only two public funds, Yifangda and Penghua Fund, that hold a large position in Wencan Group, and the fixed income veteran Hu Jianqi's products under Yifangda have been reducing their holdings of the stock for two consecutive quarters.
Since this round of private offering, China International Capital Corporation and Nomura Oriental have successively lowered Wencan Group's target price, while Huatai Securities has raised Wencan Group's target price. However, all three have hinted at the risks involved, citing issues such as rising raw material prices and expanding customer base.
According to statistics of the issuance date, 56 listed companies have completed private offering this year, with a total actual fundraising of 71.276 billion yuan. By comparison, the total amount of fundraising for private offering by listed companies this year is less than 1/3 of the same period in the past three years, and the number of listed companies that have completed private offering is less than half of the same period in the past three years.
So far, listed companies with a total actual fundraising amount exceeding 1 billion yuan can rank among the top 20, and Wencan Group, with a total fundraising of 1.047 billion yuan, ranks 18th. In the same period last year, the total amount of actual fundraising for the top 20 listed companies did not fall below 4 billion yuan.
Compared with the same period last year, the profit-making effect of private offering projects has been weak due to the decrease in project scale and quantity. As of the closing price on July 12th, among the 47 private offering projects participated in by institutional investors, there were 23 in the floating profit phase and 24 in the floating loss phase. In the same period last year, among the 122 private offering projects participated in by institutional investors, there were 105 in the floating profit phase and 17 in the floating loss phase.
Six public funds contributed half of the total amount raised.
In this round of private offering, Guangdong Hengjian International Investment Co., Ltd. (hereinafter referred to as "Hengjian Investment") invested 0.25 billion yuan to obtain 10.5574 million shares, making it the largest single subscriber. The investment company is a wholly-owned subsidiary of Hengjian Holdings. According to the company's official website, Hengjian Holdings was established in August 2007 with the approval of the Guangdong Provincial People's Government. It is a state-owned sole proprietorship company established by the Guangdong Provincial State-owned Assets Supervision and Administration Commission, and is a provincial-level state-owned capital operation company and a strategic investment platform of the Provincial Party Committee and the Provincial Government.
The six public funds were allocated a total of 22.2551 million shares, with a total investment of 0.527 billion yuan, accounting for 50.33% of the total amount raised in this round of private offering. Specifically, Nord Fund, Caitong Fund, Yifangda, Penghua Fund, Huaxia Fund, and Yimi Fund were allocated 6.8201 million shares, 6.5667 million shares, 4.5608 million shares, 2.1115 million shares, 1.6892 million shares, and 0.5068 million shares respectively, with investments of 161 million yuan, 155 million yuan, 108 million yuan, 50 million yuan, 40 million yuan, and 12 million yuan respectively.
In addition, two private equity firms were allocated a total of 2.5338 million shares, with a total investment of 60 million yuan. In this round of private offering, Shanghai Automotive Jizhen (Shanghai) Asset Management Co., Ltd. (hereinafter referred to as "SAJZ Asset") and Wuhu Guxin Intelligent Manufacturing Equity Investment Fund Partnership (Limited Partnership) were allocated 1.6892 million shares and 0.8446 million shares respectively, with investments of 40 million yuan and 20 million yuan respectively.
In addition, UBS AG and GTJA invested 94 million yuan and 460 billion yuan respectively to obtain 3.9696 million shares and 1.9426 million shares. Huatai Asset Management's two products invested 20 million yuan and acquired 0.8446 million shares.
Both Hengjian Investment and UBS AG will be listed among the top ten shareholders.
As of March 31, Wencan Group's top ten shareholders are Tang Jiexiong, Tang Jiebang, Tang Jiecao, Foshan Shengde Zhi Investment Co.,Ltd., Tang Jianjun, Tang Jianyu, E Fund Supply-side Structural Reform, He Xiaoling, E Fund Stable Income, and Hong Kong Central Clearing Limited.
Based solely on the above shareholdings, without considering other factors, E Fund Stable Income and Hong Kong Central Clearing Limited will exit Wencan Group's top ten shareholders list after the new shares are registered. At the same time, Guangdong Hengjian International Investment and UBS AG will enter the list and rank eighth and tenth respectively.
Since the first quarter of last year to the first quarter of this year, Hu Jian's E Fund Stable Income has been among Wencan Group's top ten shareholders for five consecutive quarters. However, Hu Jian has reduced his holdings of Wencan Group for two consecutive quarters since the fourth quarter of last year.
According to Wind Heavy Holdings data, as of the end of the first quarter, only two public funds, E Fund and Penghua Fund, held heavy holdings of Wencan Group, with a total of 13.9626 million shares, a decrease of 3.6455 million shares from the end of the previous quarter. After reducing their holdings in the first quarter, neither China Merchants Fund nor Wanjia Fund hold heavy holdings in the stock.
Looking back, before the second quarter of 2023, the top ten circulating shareholders of Wencan Group also included Guangfa Manufacturing Select Fund under Li Wei, and Jingshun Changcheng New Energy Industry under Yang Ruiwen; in addition, foreign capital such as Swiss United Bank Group and Merrill Lynch have also entered the list.
In May of this year, Nomura Oriental gave Wencan Group a "buy" rating, but lowered its target price from the previous 49 yuan to 41 yuan; in April, China International Capital Corporation also lowered its target price from the original 53 yuan to 36 yuan. In the same month, Huatai Securities raised its target price for Wencan Group from 26.6 yuan to 29.6 yuan.
Nomura Oriental's related research report pointed out that the adjustment of target price was based on the significant decline in parts industry valuation since the fourth quarter of last year and the valuation premium of the company's integrated die-casting leading enterprises. And give 5 risk tips: the risk of lower-than-expected car sales; the risk of fluctuating raw material prices; the risk of intensified market competition; the risk of lower-than-expected mass production progress of integrated die-casting products; and the risk of slower-than-expected integration of Baolian Group.
China International Capital Corporation also raised risks in its research report, namely, a sharp rise in raw material prices and lower-than-expected sales of core customers.
Huatai Securities believes that the short-term expansion of global production capacity may bring operational pressure, and the long-term bullish view is that Wencan Group will benefit from obtaining global customer orders, improving global service capabilities, and seeing the profit elasticity brought by the release of production capacity. Also gave 3 risk tips: the risk of failing to expand new customers as expected; the risk of higher-than-expected raw material price increases; and the risk of one-piece die casting technology.
With a fundraising of 1 billion, you can enter the top 20.
According to Wind data, as of the issuance date, 56 listed companies have completed private placements this year, with a total actual fundraising of 71.276 billion yuan; whereas in the same period last year, 172 listed companies announced private placement results, with a total actual fundraising of 320.252 billion yuan. In the same period of 2022, 139 listed companies announced private placement results, raising a total of 277.354 billion yuan. In the same period of 2021, 238 listed companies announced private placement results, raising a total of 344.749 billion yuan.
It can be seen from the comparison that the total actual fundraising of listed companies' private placements this year is less than one third of the same period in the past three years, and the number of listed companies completing private placements is also less than half of the same period in the past three years.
As far as the data for this year is concerned, nine of the 56 listed companies participated in the subscription through their controlling shareholders.
In terms of subscription method, 8 listed companies' major shareholders subscribed with cash, while the major shareholder of AVIC Helicopter subscribed with assets. The subscription ratio was 85.03%, and the total actual funds raised were 5.078 billion yuan.
In terms of subscription ratio, the major shareholders of China Petroleum & Chemical Corporation, Conch New Materials, and Wanchen Group all had subscription ratios of 100%, and the actual funds raised were 12 billion yuan, 0.5 billion yuan, and 0.2 billion yuan, respectively. The subscription ratio of the major shareholders of the other 5 listed companies did not exceed 50%.
According to the China Securities Regulatory Commission's industry classification, individual stocks belonging to the computer, communication, and other electronic equipment manufacturing industry, the automobile manufacturing industry, the pharmaceutical manufacturing industry, the special equipment manufacturing industry, and the real estate industry account for a relatively large proportion of the listed companies that have completed private placements this year.
So far, listed companies that have actually raised more than 1 billion yuan can all enter the top 20 of the list. Wencan Group ranks 18th with a fundraising amount of 1.047 billion yuan. If the participation of major shareholders is excluded, Wencan Group can move up 3 places.
In the same period last year, the actual total amount of fundraising for the top 20 listed companies was not less than 4 billion yuan.
Based on the closing price on July 12th, among the 47 private placement projects participated by institutional investors, there are currently 23 in the floating profit stage and 24 in the floating loss stage. Among them, institutional investors who participated in Nanya New Material Technology, Olympic Circuit Technology, Tibet Urban Development and Investment, and Deya Technology have all earned floating profits of more than 50%; while institutional investors who received private placements of Qu Mei Home Furnishings Group and Hoyuan Green Energy are currently experiencing floating losses of more than 30%.
Compared with the same period last year, the profit effect of private placement projects for investors was more significant. During that period, among the 122 private placement projects participated by institutional investors, there were 105 in the floating profit stage and 17 in the floating loss stage.