During the Spring Festival of the Year of the Dragon, the queuing situation of IPO companies has attracted the attention of the market. It is rumored that more than 300 companies and even as many as 450 companies have withdrawn their IPO applications. However, these online rumors have no basis and cannot be believed. On the contrary, the queue of IPO companies released by the three major exchanges of Shanghai, Shenzhen and Beijing made the market feel the huge pressure of IPO.
According to the information released by the three major exchanges, as of January 31 this year, the number of IPO companies in the IPO queue on the Shanghai, Shenzhen and Beijing stock exchanges was 635. Among them, the number of companies in the GEM IPO queue is the largest, reaching 227, accounting for about 36% of the total queue. followed by the main board of the Shanghai Stock Exchange, with 126 companies to be listed, accounting for about 20%. There are 97, 96, and 89 companies on the Beijing Stock Exchange, the Science and Technology Innovation Board, and the ** Main Board.
According to the summary of the review progress, more than sixty percent of the enterprises planning to IPO are currently in the inquiry stage. Specifically, a total of 15 enterprises have been accepted, 428 have been inquired, 132 have been approved by the Listing Committee meeting, 2 have been suspended, and 58 have been submitted for registration.
If all the above 635 companies are successfully registered, according to the current IPO process, even if the exchange no longer accepts new IPO applications, it will be enough to support a two-year IPO high-speed issuance. Considering the downturn in the market, as well as the maintenance of the dynamic balance of the primary and secondary markets, these 635 companies may not be able to complete the issuance in two years. Therefore, these 635 queuing companies have undoubtedly put greater pressure on the current A** field.
In fact, the pressure of this IPO comes not only from the number of companies in the queue, but also from the amount of funds to be raised by some IPO companies. Taking the IPO companies on the main board of the Shanghai Stock Exchange as an example, there are currently 126 companies queuing up on the main board of the Shanghai Stock Exchange, with an amount of more than 280 billion yuan to be raised. Among them, Syngenta is expected to raise 65 billion yuan, ranking first, and the company's current IPO status is "approved by the listing committee meeting". In second place is Huadian New Energy, which plans to raise 30 billion yuan; In addition, 15 companies such as Cherry Valley plan to raise less than 500 million yuan. This means that Syngenta has raised more money than 100 Cherry Valley companies. Therefore, a "giant" IPO like Syngenta has undoubtedly become a sword of Damocles hanging over the A** field, so that investors have to be wary of it, and at the same time tremble. Investors fear that the sword of Damocles will fall on their heads at any time.
Therefore, it is necessary to suspend Syngenta's IPO in the context of the policy of "activating the capital market and boosting investor confidence" advocated by the top management and the management clearly stated that it would maintain the dynamic balance of the primary and secondary markets. After all, Syngenta's "giant" IPO has put tremendous pressure on the market. The company not only raised a huge amount of funds, but also was the fourth largest IPO in the history of A-shares, and its fundraising scale was second only to the Agricultural Bank of China's 6852.9 billion yuan, 66.8 billion yuan from PetroChina in 2007 and 665 billion yuan from China Shenhua in September of the same year8.2 billion yuan. And the company has already successfully passed the meeting on the Shanghai Stock Exchange on June 16, 2023. Once registered, you can launch an IPO at any time.
Some people may say that Syngenta's IPO did not stop it, but let it sit in the queue for IPOs, which did not actually increase the pressure on the IPO market. For example, this is the case in the 2023 A** field when it comes to Syngenta's IPO. Although Syngenta passed the meeting on June 16, the follow-up process has not progressed and has not brought substantial pressure to the market.
But this approach still has a lot of psychological pressure on investors. After all, this kind of "shelving" is not open and honest, it is not blunt. Because once you say "shelved", it actually means a pause. And the "shelving" that has not been suspended, the "shelving" that has not been publicly declared, may no longer be shelved at any time. Therefore, this kind of silent "shelf" for the market and investors, its pressure still exists, although it has not formed substantial pressure, but the psychological pressure is not small at all, which is also not conducive to boosting investor confidence.
Therefore, as far as the current A** market is concerned, it is necessary to stop Syngenta's IPO. Not only that, in the context of Wu Qing's appointment as the 10th chairman of the China Securities Regulatory Commission, new changes in the IPO market are expected. In order to maintain the dynamic balance of the primary and secondary markets, it can be clearly stipulated that IPO companies with more than 10 billion yuan of funds raised below 4,000 points of A-shares will not be issued; Below 5,000 points of A-shares, aircraft carrier stocks with a fund-raising of more than 50 billion yuan will not be issued, so as to maintain the dynamic balance of the primary and secondary markets.