Beijing-Shanghai High-Speed Railway Refresh A Shares IPO Fastest Audit Record November Potential IPO Size 85 Billion

Beijing-Shanghai high-speed railway refreshed the fastest ever audited record of A share IPO.

In November 14th, twenty-first Century economic news reporter learned from many investment bankers, the first Beijing-Shanghai high-speed railway on the same day was formally approved by the trial committee.

This means that from October 22nd to date, the Beijing-Shanghai high-speed railway's trial cycle lasted only 23 days, exceeding the 36 day record set by Foxconn last year.

Those who are close to regulators have revealed to reporters that the follow-up process of Beijing-Shanghai high-speed railway will also maintain super high speed progress, and is expected to get the first approval approval in November 15th.

In the industry view, the lightning over the Beijing-Shanghai high-speed railway will be a cross section of the efficiency of the IPO audit, but considering its early declaration has been fully demonstrated communication, so fast the audit cycle in the industry is still difficult to easily replicate; at the same time, in view of the possible larger scale of the Beijing-Shanghai high-speed railway, its impact on market sentiment is also highly concerned by the institutions.

New record

The progress of Beijing-Shanghai high-speed railway is IPO.

At noon on November 14th, many people in the industry confirmed to the twenty-first Century economic report reporter that the Beijing-Shanghai high-speed railway was approved at the IPO trial Conference on the same day.

"Beijing-Shanghai high-speed railway is over. This is the first company that will attend the trial meeting this morning." In November 14th, a person close to the regulatory bank revealed that "there is no resistance from the program, which is basically consistent with market expectations."

Prior to that, the fastest record of IPO audits was maintained by Foxconn listed last year.

Last February, with the support of the unicorn green channel policy, Foxconn broke through all kinds of potential hurdles to complete the IPO audit process. From the materials submitted to the conference, it only took 36 days, and 20 working days, and the Beijing-Shanghai high-speed railway was 13 days less than Foxconn.

The reporter learned exclusively from an investment bank who was close to regulators. After the completion of the Beijing-Shanghai high-speed railway, he was expected to get his first approval in November 15th.

"Early communication has been very sufficient. If everything goes well, we will be able to make the approval within second days of the meeting." The investment bankers said frankly, "if the progress can be achieved or approached, the Beijing-Shanghai high-speed railway will also set a record of the shortest audit time from declaration to approval."

Beijing, Shanghai and high speed rail if approvals will also be issued quickly, will greatly exceed the previous IPO trial record. In the Foxconn project which was the fastest before, although Foxconn would only spend 36 days from the declaration to the past, it would be 2 months away from the meeting to get the initial approval.

It is possible to achieve such a fast trial efficiency. It has been discussed for a long time with the relevant stakeholders such as Beijing-Shanghai high-speed railway, investment banking and regulatory authorities, China Railway Corporation and local government.

"The market saw this project going very fast. In fact, a lot of work and investment occurred in the guidance phase. At that time, the project had been in communication for a long time, especially in the financing scheme. It was too late to be determined, and it needed to be submitted at all levels. Therefore, it took a long time to start grinding, which is the initial cost for Beijing-Shanghai high-speed railway to pass so quickly." An investment bank close to Beijing-Shanghai High-speed Railway said, "plus the project is also a loss, and the market may be controversial."

"From a longer period of guidance than a general project, it can be seen that this big Mac project is not easy to do." The person said frankly.

Reporters from the IPO review progress, usually the project counseling period is 3-6 months, but the Beijing-Shanghai high-speed railway from the end of February this year, revealed the guidance period material, but not until October 22nd formally meeting, the interval is nearly 8 months.

IPO huge hits

After the Beijing-Shanghai high-speed railway, the market will face a huge scale of issuance.

According to the prospectus, Beijing-Shanghai high-speed railway plans to issue 7 billion 557 million shares, with a total share capital of 50 billion 377 million shares after issue, and the issue shares account for 15% of the total share capital issued.

Unlike the vast majority of IPO projects, the proportion of issuance will be limited to 10%. This proportion exceeding the market expectation will further expand its potential fund-raising.

If the Beijing-Shanghai high-speed railway's net profit in 2018 was 10 billion 248 million yuan to the parent company and calculated at 50 billion 377 million yuan, its earnings per share after the issue were about 0.203 yuan.

According to the earnings per share level, the 22.98 times earnings price limit of the motherboard IPO and the issuing scale of 7 billion 557 million shares, the price of Beijing-Shanghai high-speed railway is about 4.66 yuan, and the maximum size of the collection is expected to exceed 35 billion yuan.

It is worth mentioning that the next big Mac IPO project may be more than Beijing-Shanghai high-speed railway.

In November 28th, the postal savings bank, which has been approved by the SFC, will issue 5 billion 172 million shares at the price of 5.50 yuan, and the corresponding potential fund-raising will reach 28 billion 446 million yuan. In November 14th, the Zhejiang Merchants Bank, which had been in the stock market for a month, launched the issue, issuing 2 billion 550 million shares in accordance with the price of 4.94 yuan / share, and the amount of fund-raising reached 12 billion 597 million yuan.

This means that the total scale of fundraising of the three IPO companies, Beijing-Shanghai high-speed railway, postal savings bank and Zhejiang Merchants Bank, has reached as high as 76 billion 43 million yuan.

According to the statistics of Wind reported by the economic news reporters in twenty-first Century, there are 13 IPO companies that have issued or confirmed the date of issue, which will launch IPO in November, and the total scale of fund-raising will reach 8 billion 124 million yuan, which will make the potential IPO scale close to 85 billion yuan in November.

Such a huge scale of IPO also makes the recent changes in A share market sentiment highly vigilant by institutions.

"The market is more worried that the November IPO will cause blood effect to stock funds. Although there is no problem in overall liquidity at present, it may still bring some negative effects on investment sentiment." A private researcher in Beijing said.