Hong Kong stocks have a high breaking rate to cause "mini iPO" popular industry to remind investors to be alert to subsequent stock price fluctuations

Economic Observation Network Reporter Lao Yingying's Hong Kong stock market has more and more "mini version of IPO".

On August 10, Ningmeng Film (09857.HK) was officially listed in Hong Kong stocks, with a issuance price of HK $ 27.75/share. On August 12, the stock rose to HK $ 34.35/share, and then fell into a shock. As of press time, Lien Meng Film's stock price was HK $ 27.75/share, with a market value of HK $ 10 billion.

The IPO of Ningmeng Film has issued a total of 15.1393 million shares, accounting for about 4%of its total share capital. Among these 4%ratio, nearly half of them were subscribed by the cornerstone investors. %.

Such a small distribution ratio can be called "mini IPO". In fact, Nemon Meng Film is not alone. Since this year, more than ten companies such are seeking listing in Hong Kong, and the proportion of new shares accounts for less than 10%.

"In the past, there was a small proportion of this small proportion. There were many this year." A Hong Kong investment banker told the Economic Observation Network reporter.

According to the reporter's interview, this situation is mainly related to the downturn in the Hong Kong stock market, the high cooling and high break rate of the new stock market. In order to explain the demand for the exit of the first -level market, the enterprise has given up the financing capabilities of listing. At the same time, the less circulation tray can make the company's control disk less difficult, which can maintain the stock price and avoid too much inversion of the first and secondary valuations. However, this approach is also a double -edged sword, insufficient liquidity, and the active degree of stock trading will be obviously affected. In addition, the stock price is prone to fluctuating violent fluctuations.

Why is the "mini" IPO popular?

There are many examples like Ling Mengying.

Star Enterprise Minimally Invasive Brain Science (02172.HK) IPO was listed in Hong Kong on July 15th. A total of 13.7 million shares were issued, accounting for only 2%of the total share capital. The corresponding net fundraising amount was only 2.78 2.78 HK $ 100 million. It is also a vascular intervention robot company Runmid-B (02297.HK), which was listed in July. It sold 23.8 million shares worldwide. Its issuance of new shares accounted for 2.04%of the total share capital. The IPO raised funds of only 149 million Hong Kong dollars.

According to statistics from reporters, since this year, Zhiyun Health (09955.HK), Mingchuang Youpin (09896.HK), Graffiti Smart-W (02391.HK), Noah Holdings -S (06686.HK), fast dog taxi (02246.HK), Minden Gene (06667.HK), Xuanwu Yun (02392.HK), Ruico Bio-B (02179.HK) and other new shares account for less than 10%of the total share capital. According to statistics, from 2019 to 2021, the average number of new shares issued in the Hong Kong stock market accounted for about 20%-25%of the total share capital after issuance.

"In the past, there was a small proportion of this small proportion. There were many this year." A Hong Kong investment banker told the Economic Observation Network reporter. The reporter found that this was the same when Shangtang-W (00020.HK) IPO was also operated. At that time, the company only issued 5%of new shares, totaling 1.725 billion shares. Among these 5%of the new shares, 1.033 billion shares belong to the cornerstone investors and 236 million shares of Shanghai International, Shanghai International, all have a lock -up time, which can only buy about 1%in the secondary market.

The above -mentioned investment banks said that this approach is to be released and listed first. In fact, some of them have abandoned the financing capabilities of listing, and they have less circulation. After the company is listed, it can explain the demands and capital dividends of the first -level market investors. They think that the circulation market is small and the difficulty is less difficult to maintain the stock price and avoid too much inverted valuation of the first and second levels.

Chen Gang, co -director of the Ed Financial Research Department, said in an interview with the reporter of the Economic Observation Network that this situation is mainly related to the downturn in the Hong Kong stock market and the cooling of the new stock market. From the perspective of the secondary market, the Hang Seng Index has retracted 14.5%since the beginning of the year. The IPO of Hong Kong stocks this year is close to 80%.

"Some companies are just listing for listing. The main purpose is to expand the brand's influence and promote international business, thereby reducing the scale of issuance and meeting the foundation of the foundation. Fund maintaining the company's stock price and enlarging liquidity effect. The poor aspect is also a problem of liquidity. The activeness of stock trading will be obviously affected. Insufficient liquidity will cause price distortion. In addition, the stock price will appear in the later period, and the stock price will occur. Violence, "Chen Gang said.

Be wary of subsequent stock price fluctuations

Judging from the currently on sale of small -scale shares, the "mini IPO" may be able to solve the problem of not much inversion in the first and secondary markets to a certain extent, but the transaction volume is also small due to the small circulation plate. In fact, in fact, in fact, in fact, in fact, in fact, in fact It may not necessarily solve the problem of downturn in stock prices.

For example, during the prospectus of Ningmeng Film and Television, the PRE-IPO valuation was about HK $ 10 billion, and the issuance valuation was 9.714 billion Hong Kong dollars. On the third day of listing, Ningmeng Film once soared 20%to HK $ 34.35, but soon fell back to the level of issuance.

Micro-invasive brain science is also similar. Basically, the valuation of the first and second levels is not inverted. The issue price of the issuance price reaches HK $ 14.2 billion, which is slightly higher than the valuation of HK $ 13.7 billion in the Pre-IPO wheel. After one week of listing, it also fell only 0.3%. In early August, it fell to HK $ 20.15/share since its listing. Then the stock price rebounded back to the level of Hong Kong dollars/share issuance price. New shares issued about 5%of fast dogs to take a taxi, and the stock price fell more. In June, fast dog taxis listed in Hong Kong stocks, the issue price was HK $ 21.5/share. After listing, the stock price of fast dogs has fallen endlessly. As of the close of August 18, the stock price was HK $ 6.090/share, and the stock price plunged 70 % in two months.

The extremely low distribution ratio also led to another problem, that is, the transaction volume after listing is very low. Most of the a day after listing is only millions of shares, such as Runmed-B's first-day transaction volume is 5.63 million shares, and Zhiyun Health is 4.28 million shares, Ruico Bio-B is 3.44 million shares.

Chen Gang believes that this situation will cause the financing scale and valuation of the new stock market to both decrease. The market is not good. The cooling of new shares will cause the investment bank to reduce the disadvantages of corporate valuation during the inquiry and decline in the total amount of financing, which will lead to leading to the total amount of financing. Many companies have abandoned listing, thereby further reducing the popularity of the new stock market.

"The secondary market serious institutional investors have paid attention to this small proportion of issuance. If this company is a much higher financing amount than the IPO round of financing, it is suspicious, indicating that it has normal and traditional listing financing. Other demands. "The above -mentioned investment bankers told the Economic Observation Network reporter.

The reporter noticed that the scale of fundraising of these companies and the amount of fundraising of the first -level market is almost completely upside down. Minimally invasive brain science is the leading company of Chinese neuropathy intervention in the track, and its performance has grown at a high speed. In November 2021, a minimally invasive brain science conducted a round of Pre-IPO financing. At that time, the valuation had reached 1.75 billion US dollars (about 137 HK $ 100 million), including CICC Capital, Huayi Capital and many other institutions entered the bureau. The minimally invasive brain science amount last year's PRE-IPO financing amount was as high as 150 million US dollars (approximately HK $ 1.2 billion). In contrast, the net fundraising amount of its open market was only 278 million Hong Kong dollars.

Before the listing of Runmid-B, the D round raised $ 72 million (approximately HK $ 565 million) in financing. It was led by Ping An Capital and followed by international capital Seresia Asset Management, Lighthouse Canton, etc. The Runmid-B open market raised a total of HK $ 149 million in funds, far less than the D-round financing.

In the later period of this type of company, the stock price usually fluctuates severe fluctuations. For example, on the day of Shangtang Technology on June 30, 2022, the stock price fell 46.77%to HK $ 3.13/share.

So, what issues should be paid attention to for new stock market retail investors? Chen Gang said that from the Hong Kong stock market, the good or bad of the new stock market and the secondary market is directly correlated. There will be too much space. Secondly, for the above -mentioned enterprises that reduce the size of IPO, they still need to pay attention to certain liquidity risks. New shares should try to start with the actual fundamental conditions of the enterprise itself.

"Investors should pay more attention to the fundamentals and valuations of the enterprise itself. The scale of issuance will not decide whether to rise or fall. What really determines is whether the secondary market is willing to pay." The Futu Investment Research Team also told reporters.

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