Securities Times reporter Yu Shengliang
Taking advantage of the sharp rise in share price, Tencent Holdings (00700.HK) did not hesitate to sell New Oriental Online (01797.HK).
On June 20, the Hong Kong Stock Exchange disclosed that Tencent Holdings sold 74.6 million shares of New Oriental Online from June 15 to June 16.
After this round of reduction, Tencent Holdings’ shareholding in New Oriental Online dropped from 9.04% to 1.58%.
Among them, on June 15, Tencent Holdings sold 35.6125 million shares at an average selling price of HK$9.618 per share.
On June 16, Tencent Holdings sold 38.9914 million shares again, with an average selling price of HK$9.6755 per share.
Estimates show that on June 15 and June 16, Tencent Holdings cashed out HK$342 million and HK$377 million respectively.
Through this round of reduction, Tencent Holdings cashed out a total of HK$719 million.
Share cost
According to the documents disclosed in the IPO of New Oriental Online, Tencent invested in New Oriental Online in 2016, more than six years ago.
On February 1, 2016, all shareholders of New Oriental.com signed a capital increase agreement with Linzhi Tencent, agreeing that Linzhi Tencent would increase the capital of New Oriental.com at a premium of 320 million yuan, and subscribe the company to increase its registered capital by 4.2857 million yuan.
Among them, 4.2857 million yuan is included in the registered capital to obtain 12.5% of the equity after the capital increase is completed, and the remaining part is included in the capital reserve.
Before the listing of New Oriental Online, Linzhi Tencent, a subsidiary of Tencent, held 12.29% of the shares of New Oriental Online.
New Oriental is the largest shareholder of New Oriental Online, holding 66.72% of the shares; Dragon Cloud holds 6.87% of the shares of New Oriental Online; Yu Minhong holds 1.85% of the shares through Tigerstep; Auspicious, an employee shareholding platform, holds 7.11% of the shares; Sun Chang holds 1.97% of the shares through First Bravo %; Pan Xin holds 1.25% through Nova Max; Yin Qiang holds 0.45% through Perfect Go.
When New Oriental Online was listed, the net proceeds from additional financing was 1.567 billion Hong Kong dollars. The market opened on March 28, 2019, with a maximum increase of more than 2.28% and a market value of more than 9 billion Hong Kong dollars.
New Oriental Online's public offering was oversubscribed by approximately 8.18 times.
The cost of Tencent's shareholding was 320 million yuan. Now it has sold and cashed out 719 million Hong Kong dollars, which has about doubled its profit, and a small part of the equity has not been sold.
From the K-line chart, it can be found that the two days of Tencent’s selling happened to be the recent high point of the stock price of New Oriental Online, and the transaction volume was effectively increased, but the lowest price was 12.34 Hong Kong dollars per share, and the average price of Tencent’s two-day reduction was significantly lower than the lowest price. I do not know why.
Tencent has invested in many companies, basically before listing, and has also gained investment income.
However, the pace of Tencent's investment has slowed down. At present, it has reduced its holdings of Jingdong through dividends. It has also announced that it has begun to reduce its holdings in SEA, which has successfully invested in overseas.
In addition, Tencent rarely reduces its holdings in the companies it invests in, and they are basically long-term investors. This time, it is relatively rare to reduce holdings while the stock price is soaring.
Tencent mainly subscribes for additional issuance of A-share companies and buys shares from the secondary market, and some investments have suffered losses.
Frustrated and hot
Due to changes in relevant policies, New Oriental’s original education and training business has shrunk considerably. Yu Minhong proposed to bring agricultural products and established Oriental Selection at the end of last year.
Recently, the live broadcast platform of New Oriental Online has become popular on the whole network due to the adoption of "bilingual delivery", and the number of platform fans has rapidly exceeded 10 million.
At the same time, the stock price of New Oriental Online has also soared.
Among them, on June 15 and June 16, the stock price of New Oriental Online increased by more than 50%.
Within a week, the stock price of New Oriental Online has risen nearly 6 times, and the stock price has risen more than 10 times since May.
Specifically, on June 15, New Oriental Online rose 54% to close at HK$16.56 per share.
On June 16, New Oriental Online soared by 72%, and its share price exceeded HK$20, closing at HK$28.60 per share.
However, from the opening of the market on June 17, the stock price of New Oriental Online began to fall.
In the past two trading days, it fell by 12.59% and 32.08% respectively.
On June 20, New Oriental Online fell more than 8% at the opening, and as of the close, it was reported at HK$16.98 per share.
The current market value is HK$17 billion.
In the face of skyrocketing, investors also took a different stance.
According to Choice statistics, from June 9 to June 17, many major overseas banks including JPMorgan Chase, Morgan Stanley, Citibank, BNP Paribas, Deutsche Bank, Interactive Brokers, etc. Significant reductions were made.
Among them, Morgan Stanley, which still held 72.52 million shares on June 9, has almost achieved a liquidation-style reduction; however, Goldman Sachs and UBS chose to continue to increase their positions during the sharp rise in stock prices, especially Goldman Sachs' increase The warehouse is large.