Sino-Singapore Jingwei, August 26 (Ma Jing) On the 25th, a new IPO terminated company was added to the Science and Technology Innovation Board.

The Shanghai Stock Exchange said that since Ningbo Hengpu Vacuum Technology Co., Ltd. withdrew its application for issuance and listing, the sponsor, Founder Securities, withdrew the sponsorship.

　　Data show that as of August 26, 192 companies in the Shanghai and Shenzhen stock exchanges have pressed the "terminate button" in the IPO process this year, and 70% of them have voluntarily withdrawn their application materials.

In terms of quantity, leading securities companies such as Guotai Junan have the most projects terminated; in terms of the rejection rate, Guodu Securities and Zhongde Securities are equivalent to "being busy for half a year".

192 IPO projects were terminated, and 70% of them voluntarily withdrawn

　　Wind shows that of the 192 companies that have terminated IPOs, 101 companies plan to list on the Growth Enterprise Market, 38 companies plan to list on the Main Board, 23 companies are listed on the Science and Technology Innovation Board, and 30 companies are listed on the Beijing Stock Exchange.

Among the more than 1,000 companies that have filed for IPOs so far this year, the Growth Enterprise Market has accounted for half of them, so the number of terminations is the largest.

Judging from the timing of the announcement of the IPO termination, the number of IPO projects suspended by the defendants is almost the same each month, and there is no “7-August IPO termination wave” mentioned by individual market views.

However,

it is worth noting that 137 IPO application materials were voluntarily withdrawn for related companies, accounting for about 71.35%.

　　Combined with the review status before termination, it was found that among the

137 companies that voluntarily withdraw their IPO application materials,

61 companies have changed their inquiry to termination (withdrawal), and 5 companies and 5 companies have voluntarily withdrawn after the second or third round of inquiries. 4, Guangdong Huiqun Traditional Chinese Medicine Co., Ltd. and Jiangsu Pucao Technology Co., Ltd. chose to withdraw voluntarily after the fourth round of inquiries.

In addition, 20 companies withdrew their IPO application materials after they had responded.

　　In order of the first announcement date, there are many companies that have voluntarily withdrawn for several years.

Eight companies made their first announcements of IPOs before 2019, but all voluntarily withdrew their IPO applications after inquiries and suspension of review without exception

.

Among them, the most "long-term" is Shanghai Wenhua Finance and Information Co., Ltd. It first submitted materials in November 2015 to be listed on the Growth Enterprise Market, and the review was terminated in April 2018; in June 2021, Wenhua Finance submitted its IPO for the second time. The book entered the regulatory inquiry stage in August of the same year.

In May 2022, the application materials were updated, but in June of the same year, it voluntarily applied for the withdrawal of the IPO application materials, and its sponsor was Huatai Securities.

　　Tian Lihui, Dean of the Financial Development Research Institute of Nankai University, said in an interview with Sino-Singapore Jingwei that "withdrawal after an investigation" means that the gatekeepers of the market are not strictly checking, and the declaration materials are incomplete, inaccurate or untrue. Passing through the border ill or ignorantly, but can be in awe, worried that the problem will be verified by on-site inspection, and will be warned by supervision, administrative punishment or even criminal punishment.

Therefore, issuers or sponsors with problems "will withdraw as soon as they are investigated", and hope to " withdraw as soon as possible." It's over"

.

　　Wang Jiyue, a senior investment banker, told Sino-Singapore Jingwei that there are many situations in which materials are withdrawn. Some are because the sponsorship work is not done solidly

; Some may be no longer eligible due to declining business performance or other problems.

Large brokerages have a large number of terminated projects, and small brokerages have a high rejection rate

　　For companies, termination means the IPO dream is over, and for brokers, the termination of sponsorship projects first means that the "money flowing into the pocket" is gone.

Wang Jiyue told Sino-Singapore Jingwei that the main fees charged by the investment bank of securities companies are the underwriting fees collected at the time of issuance, and the money collected in the early stage is basically negligible. Once the project is terminated, it also means that no money will be received.

　　After sorting out the 192 IPO terminated companies, it was found that the sponsor with the most terminated projects was Guotai Junan, with a total of 13, followed by Haitong Securities, Huatai Securities, Western Securities and CITIC Securities, all with more than 10.

　　Since the investment banking business department of a securities firm charges underwriting fees based on the total amount of funds raised, the larger the fundraising scale, the higher the underwriting fees.

Statistics show that among these rejected projects, there are many large households that have raised more than billions of dollars.

Among them, Guangxi Yangxiang Co., Ltd. plans to land on the main board of the Shenzhen Stock Exchange, with a proposed fundraising amount of 10.403 billion yuan. The update is changed to terminate the review, and the sponsor is Guotai Junan.

　　Sichuan Langjiu Co., Ltd. and Minth Group Co., Ltd. are also planning to raise a lot of funds, which are 7.454 billion yuan and 6.5 billion yuan respectively.

The former intends to land on the main board of the Shenzhen Stock Exchange and was terminated for review, and the sponsor is GF Securities.

The latter plans to land on the Science and Technology Innovation Board, and chose to voluntarily withdraw after inquiries and responses, and the sponsor is Huatai Securities.

　　However, it should be noted that

although there are many terminated projects of top brokerages, their "ammunition bays" are sufficient.

CITIC Securities has a total of 228 sponsorship projects this year (including joint sponsorship, the same below), ranking first.

It is followed by CITIC Construction Investment with 174 companies.

Haitong Securities, Guotai Junan, Huatai United Securities, Minsheng Securities, etc., ranked behind, have a big gap in the number of sponsorship projects compared with CITIC Securities and CITIC Construction Investment, but they are all over 100.

If the rejection rate is calculated, the top ones are all small and medium-sized securities firms.

This year, both Sino-German Securities and Guodu Securities currently have only one sponsorship project, but they all ended in voluntary withdrawal.

Huaxing Securities, Huafu Securities, and Cinda Securities all ranked second with a 50% rejection rate. The number of sponsorship projects of these three securities firms was 4, 4, and 2, respectively.

In addition, Zhongtian Guofu has 11 sponsored projects this year, but the rejection rate is as high as 45.45%.

　　"Regulators, issuers and the market will question the professionalism and prudence of the securities firms involved in the IPO withdrawal, which will affect their reputation," Tian Lihui said.

　　Wang Jiyue also mentioned that for sponsor brokers, the termination of IPO projects is mainly due to reputational impact.

If the rejection rate is relatively high, it will affect the contracting of new business.

In addition, if the quality of the application materials is found to be low or there are problems with due diligence during the review process, the regulatory authorities will impose sanctions or penalties.

　　"The registration system is not a laissez-faire, and regulators must be committed to ensuring the authenticity, accuracy and comprehensiveness of listing materials and information disclosure." Tian Lihui said that under the background of the gradual implementation of the registration system, it is

necessary to strengthen the solution to "break through the barrier with illness".

Standardize in advance, check during the event and punish after the event, so as to strengthen the responsibility of sponsorship and improve the quality of sponsorship.

　　"Pre-standardization should further tighten the application materials, such as the specification and submission of audit manuscripts, so that symptoms can be more clearly highlighted, and the relevant institutions can increase the cost of fraud. In-the-event inspections should be formed to increase the frequency of on-site inspections, and even promote on-site inspections. The normalization of inspections increases the probability of symptoms and detection. Post-mortem punishment should further increase the punishment for serious problems such as fraud, and at the same time, institutions that try to avoid punishment by means of 'check and withdraw' should be imposed. Punishment to make it clear the cost of passing through the border with illness or ignoring it." Tian Lihui said.

(Sino-Singapore Jingwei APP)

(The opinions in this article are for reference only and do not constitute investment advice. Investment is risky, and you need to be cautious when entering the market.)

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