Selected Layer To Declare The Eve Of The Investigation: The Buyer Is Watching The Game, The Underlying Price Game Hidden Mystery.

The pace of reform of the new third board selection layer is being promoted step by step.

The stock transfer system recently announced that the technology system clearance test involving public issuance and continuous bidding in the second stage of the new three board comprehensive deepening reform was completed in March 28th and formally launched in March 30th.

A number of investment bankers close to the stock transfer system pointed out that the on-line system does not mean the opening of the small IPO declaration port, but with the landing of the supporting mechanism, the declaration tide of the small IPO has been gradually approaching. According to the reporter's understanding, some of the organizers are still communicating with the selected level enterprises for the issue of the reserve price, and the information on the reserve price will also serve as a necessary material for declaration. Supplement before and after filing.

In the view of investment bankers, this predetermined reserve price mechanism will, to a certain extent, strengthen the market competition between underwriters and issuers, and bring a more obvious test to the pricing power of underwriters.

April or current declaration

Twenty-first Century economic report reporter noted that in March 30th, the small IPO listing system of the stock transfer system has been on-line on the official website of the stock transfer system, which includes multiple modules such as stock transfer notification, information disclosure, project dynamics and so on. At the same time, the announcement of the listing committee, the results of the meeting and the approval of the SFC will be displayed in this area.

It should be noted that the on-line system does not mean that the sponsor can submit the declaration materials to the issuer.

"The new on-line system is mainly related to the public issuance process, such as the issuer situation, the listing committee dynamics, and so on. Besides, there is a transaction system related to the new continuous auction in the two tier market. However, from the perspective of the brokerage industry, the reporting procedure has always been a share transfer to the BPM system. If it can be declared, it will eventually be manifested as the opening of the selection port in the BPM system." An investment bank member close to stock transfer system in Shanghai pointed out that "at present, brokerages are waiting to open the declaration channel. Some securities companies are actually ready for the project. Once they are opened, they may declare."

In fact, the stock transfer system also emphasized the preparation of the admissibility and review system in the circular recently, but did not give a timetable for the specific launch.

"The public declaration and acceptance system, the public offering underwriting business management system are ready in technology, and the related businesses will be launched in a timely manner." Stock transfer system.

However, in the view of the investment bankers who are close to the stock transfer system, the opening of the declaration system is just around the corner with the continuous advance of relevant preparations.

"Since a number of supporting preparations have been completed, the stock conversion basically has the conditions for opening the declaration port. It is expected that the selected IPO project will soon be declared." According to the above investment bankers, "according to the current timetable, it is generally expected that there will be a number of centralized declaration and disclosure of projects in April."

In addition, in terms of the material format of the declared materials, some investment bank teams are still in communication with the stock transfer system, and do not rule out that the stock transfer system will require the broker to declare all the manuscripts.

"Before the caliber is to first report materials, and then submit the draft, but now it is possible to report the manuscript together, the final requirements have not yet been determined." The above investment bankers pointed out, "but if we request to declare the manuscript together, the corresponding material work will be delayed later than expected."

Buyer's preparation

At the beginning of the selection gate, more buyer agencies have begun to aim at the layout of the new third board market.

In twenty-first Century, economic news reporters learned recently that some public offering agencies had already formed a preliminary plan for the public offering fund of selected levels.

"At present, some heads of public offering agencies are discussing and forming plans for selected products, because the selection layer is different from other markets, so there are also agencies that suggest that there should be some more appropriateness requirements for such public offerings than other public offerings." "But from the current direction, at least some head offices will not be absent from the layout of this product line," a Shanghai public offering official said.

However, due to the liquidity concerns in the market, some public offering agencies also tend to be conservative in product planning.

"The management requirements of investors at the selected level are higher than that of the Science Board, and at the same time, there is a lack of the star effect of the science and technology board, so some public offering agencies are also worried that they can not quit this point." A large public offering agency in Beijing said, "in fact, there was an expectation of the introduction of public offerings in 2015, but the product line is still mature at present, and it still depends on the specific progress of the market."

At the same time, a number of private equity institutions and industrial capital are also in full swing.

The reporter learned that some private equity agencies came in early last year when the new three board reform was announced. As a result of the reform bonus and the signal transfer of some selected companies, some stocks gained more gains in the early stage, so this kind of private placement also benefited from it.

"Money making effect will lead to more and more private placement in the market." A private equity official in Beijing pointed out that "although there is still some liquidity risk, in the long run, the selection layer and the transfer board mechanism have been opened up, so there are more and more institutions of interest."

In addition, some industrial capital is also concerned about the reform trend of the selected layer, and consider waiting for admission.

"Many industry leaders have already been listed in A shares, and some of the companies that want to choose the top tier are the second tier enterprises in the industry, which can meet the needs of some leading enterprises in mergers and acquisitions or upstream and downstream strategic investments. If IPO is reasonably priced and has a certain premium in the selected tier market, industrial capital will be very interested." Beijing listed company's head of mergers and acquisitions business pointed out.

Base price game

For many companies trying to turn to the selection layer, before entering the small IPO declaration procedure, there is still a key element to be determined, that is, the issuing floor price.

According to the related tips issued by the stock transfer system on the issue of public issuance and the deliberation and disclosure of selected items at the selected level, the issuer should declare the base price or issue interval in advance while declaring a small IPO. Thereafter, a number of companies reissue the announcement to determine the base price of the issue.

"The determination of base price requires the company's board of directors and shareholders' meeting process, so it will have some impact on the progress of the issuer's audit." A broker who was close to the stock transfer system pointed out that "we had to wait for the base price to be announced before submitting it, but because some companies have already entered the guidance period, after some communication, it is possible that some fully prepared companies will declare first, and then supplement the material confirmed by the reserve price afterwards."

In the market, there has been an event of adjusting the reserve price. For example, in March 27th, Dezhong stock adjustment and distribution plan will determine the original reserve price from 5 yuan to 3.98 yuan. The inside story is that there is also an invisible game between issuers and underwriters around the determination of the reserve price.

In twenty-first Century, the economic news reporter learned that, on the one hand, issuers were not willing to set their base price too low, because most of the stocks that were to be transferred to the selected layer were still in a trading state. The low base price of the offering could easily affect the stock price, thus affecting the final pricing and even whether it could transfer to the floor.

"First, if it is too low, such as the 30%-40% below the current market price, even if the company claims that it has nothing to do with the value judgment, it may still have some emotional transmission to the market, resulting in the pressure on the two market share price, thus triggering the" magnetic attraction effect "based on the base price. The former Shanghai investment bank said, "and if it is too low, most shareholders will not be satisfied."

But on the other hand, most investment banking teams do not have the experience of underwriting pricing in such a market at the selected level. The more consideration they consider is to "lower the base price" as far as possible, so as to reduce their potential underwriting pressure, and secondly, to avoid potential market risks.

"Most brokerages are underwriting mode. If the base price is too high, the underwriting pressure will be great, and the risk of stocks will eventually accumulate in the investment bank, which is unacceptable by the company's risk control." Shanghai investment bankers pointed out.

"For the company, it is sure that we can lower the base price as far as possible, although we are optimistic about the expected reform of the selected layer as a whole, but lowering the reserve price is beneficial to the implementation of the final project." A broker dealer in Southern China pointed out that "once the base price is set too high, the issuing price will be suspended if the risk is lower than the base price, but the most important thing for IPO is to let issuers get financing and liquidity, so it is the most important thing to run the project."

From the pre set base price signal, the industry also regrets that the selection layer and the science and technology board are still different in testing the ability of investment banks.

As a matter of fact, because of the high valuation effect of the science and technology board, it is not difficult for underwriters to carry out such projects.

"The dividend of the science and technology board is that as long as it is over, the underwriting is still no need to worry about the underwriting. On the one hand, the first tier market is still in short supply, the underwriter is in the position of Party A, and on the other hand, it is OK to make the price as reasonable as possible." A broker from Shanghai said Bao Dai.

The reform of the new third board selection layer is undoubtedly a new test of the pricing power for the participating investment banks.

"Apart from the star effect of the science and technology board, the small IPO of the selected layer actually tests the underwriter's pricing power, such as whether your pricing is reasonable, whether the roadmap and referral of the company's value are in place, whether the Underwriters' resources are adequate or not." The above Shanghai securities broker Bao Dai said, "this is not only the internal requirement of the new three board selection reform, but also the test of the" real ability "of the future registration system reform investment bank.