CICC releases the key investment of 27 billion shares for the share of funds to include wealth management, investment banks, etc.

On the evening of September 13, CICC disclosed the plan of A+H shares. It plans to adopt the shareholding of the original shareholders and sells shares to the original shareholders. The raised funds will not exceed RMB 27 billion.

Based on the total share capital of CICC as of June 30, 2022, the number of shares for sale this time does not exceed 1.448 billion shares, of which the number of A shares shares does not exceed 877 million shares, and the number of H -shares shares shares not exceeding 571 million share. After the shares are approved by the China Securities Regulatory Commission, they will be implemented within the prescribed period.

Big shareholders promise to subscribe for full subscription

CICC pointed out that the price of H -shares shares is not lower than the company's issuing announcement of the issuance of H -shares issuance announcements on the first five trading days of the company's H -shares on the Hong Kong Stock Exchange 80%, A shares and H shares After the exchange rate is adjusted by the exchange rate, it remains the same. As of the closing of September 14, CICC A shares price of 39.00 yuan and H share price of 13.20 Hong Kong dollars.

Even though there are still many procedures that need to be promoted, under the existing distribution system, the analysis of CICC's share capital structure can be seen that the probability of this shares will be successful.

In the plan, CICC's controlling shareholder Central Huijin Investment Co., Ltd. has promised that it will subscribe for its allocated shares in this distribution plan in this distribution plan.

At present, CICC's total shares are 4.827 billion shares; including 2.923 billion A shares and 1.904 billion H shares. Central Huijin is the largest shareholder of the company, with a shareholding of 1.936 billion shares, all of which are A shares (still at the initial sales restriction period). Essence According to the estimated number of A -share shares of not more than 877 million shares, the maximum number of subscribed shares of the Central Huijin will reach 581 million shares.

Because A -share shares adopt the agency sales method and the H -share allocation method is adopted by the package sales method, the success or failure of the issuance of A shares is the key to the success or failure of the shares. According to the current distribution system, when the contemporary sales period expires, the number of shares subscribed by the original A -share shareholders did not reach 70%of the proposed sales, and the issuance failed. After Huijin's "bottom", the A -share distribution part only needs to sell about 32.9 million shares to reach 70%of the minimum distribution line.

As of June 30, the number of shareholders of CICC was 109,900, a decrease of about 18,000 households from 127,900 households at the end of the first quarter.

I have previously made three equity financing last year's net capital ranking industry 11

In recent years, the distribution of shares has become one of the important means for listed securities companies to supplement capital. Since the beginning of this year, 4 brokerage companies, CITIC Securities, Oriental Securities, Caitong Securities, and Xingye Securities have completed the shares, with a total fundraising of more than 50 billion yuan. Among them, CITIC Securities raised 22.396 billion yuan in A shares and H -shares fundraising 6.04 billion Hong Kong dollars (equivalent to RMB 4.93 billion), and the total amount of approximately 27.3 billion yuan raised the highest record for the fundraising of listed brokers.

According to the China Securities Association data, at the end of 2021, CITIC Securities ranked first in the industry with 121.2 billion yuan in net capital. CICC's net capital was 65.285 billion yuan, ranking 11th in the industry.

In the planning plan, CICC pointed out that this issue will enhance the company's capital strength, reduce the capital gap between other domestic head securities firms and international investment banks, promote the company's accelerated development of large -scale, expand domestic and foreign market networks and business layout. Increase capital investment to serve the comprehensive cross -border needs of global customers, and consolidate and enhance core competitiveness in professional services, international business, digital transformation and other aspects.

In addition, the company also said that in recent years, the company's main risk control indicators have continued to meet the regulatory standards, but with the continuous development of the company and expanding new businesses, new products, domestic and overseas balance sheet business scale, the scale of the business scale of the assets and liabilities The increasing pressure is increasing, and high demand for net capital and net assets. "This issue meets the company's business development needs, which will help ensure that the company continues to meet the requirements of net capital supervision and further enhance the company's ability to resist risks."

Before throwing the plan for this offering, CICC conducted three large -scale equity financing for three times.

In November 2015, CICC realized the listing of Hong Kong stocks, raising funds of HK $ 5.49 billion (about 4.5 billion yuan). In September 2017, CICC introduced Tencent as a strategic investor. According to the announcement at the time, Tencent subscribed a total of 207.5 million H shares of CICC at the price, with the price of HK $ 13.8 per share and cost approximately HK $ 2.864 billion.

In October 2020, the main board of the Shanghai Stock Exchange, "Back to A" successfully, the A -share IPO raised a total of 13.03 billion yuan, becoming the 14th "A+H" listed broker.

CICC pointed out that in recent years, the company has timely grasped market opportunities in a timely manner through the effective use of fundraising funds, and continued to promote the strategic deployment and resource investment of "digital, regionalization, internationalization" and "CICC Family". increase. As of the end of 2021, the company's total assets scale was 649.795 billion yuan, an increase of 24.57%over the beginning of the year; in 2021, the company achieved net profit of 10.81 billion yuan, an increase of 48.85%year -on -year; in 2021, the average net asset yield of CICC was 14.64%. , Far higher than the industry average, ranked second among the listed brokers.

The announcement shows that if the shares of China Gold Corporation have successfully landed, after deducting the relevant issuance costs, the raised funds will not exceed 24 billion yuan to support business development capital demand, enhance the company's use of balance sheet resources The capital strength of comprehensive services; not more than 3 billion yuan will be used to supplement investment in other operating funds. CICC pointed out that the company will be guided by the overall strategy, combined with various business development plans, and uniformly manage and distribute capital. The key use direction of funds includes but is not limited to: capital services and product business, investment banking, wealth management, private equity, and equity,, private equity,,, private equity, equity,,,, private equity, equity,,,,, private equity, private equity, Asset management, etc.

CITIC Securities Research Department: Dating shares may be optimistic about H -shares performance in the first quarter of next year

As for the increase in the value of the company after this time, the industry is generally more optimistic in the industry.

The CITIC Securities Research Department pointed out in a comment published on September 14 that in the first half of 2022, the leverage ratio of CICC has reached 6.3 times, and the theoretical limit was almost reached under the existing regulatory conditions. Only by promoting capital supplements by re -financing, Fang may promote the company's further expansion and then break through the bottleneck of development. According to the business system of CICC, stock business, FICC business, margin financing business, and

The science and technology board may become the main direction of funding.

CITIC Securities also pointed out that the bidding plan has been reviewed and approved by the board of directors. It is necessary to wait for the CICC's shareholders 'meeting, the A -share category shareholders' meeting, and the H -shares shareholders meeting to review and approve it. According to the approval of the distribution of shares in the securities industry in the securities industry in the past three years, the subsequent process will still take three to four months. It is expected that the shares will be officially implemented in the first quarter of 2023.

After calculation, CITIC Securities pointed out that CICC ’s business characteristics are in line with the direction of the capital market reform. It has long benefited from the development of equity derivatives and the return of China -US stocks. With the expansion of capital, CICC's capital business is expected to achieve further development. It is expected that CICC will continue to maintain its Alpha attribute. A shares reference to the securities industry's new shares in the valuation premium, maintaining the "holding" of A shares and the "buy" rating of H -shares.

Guotai Junan pointed out that after the shares are landing, the company will dilute the company ROE in the short term, but the company's fundraising use plan is clear. It is expected that it can further expand the company's business development space, especially the development of high ROE business such as capital services and products. Internal recovery and even further boosting the level of ROE, laid a solid foundation for the company's long -term sustainable development. Guotai Junan gave the CICC HR "increasing holdings" rating with a target price of HK $ 24.25/share.

Disclaimer: The analysis of institutions in the article does not constitute any investment advice. The content of information disclosure is subject to the company's announcement. Investors operate accordingly and risk themselves.

Daily Economic News

- END -