From 2019 to 2023, more than 1,800 new IPOs of A-shares in Shanghai and Shenzhen will be over-funded, with high valuations and over-offerings, performance changes, and stock price breaks, etc., which will cause large losses to the majority of shareholders and basic people. Take stock of the chaos of A-share IPOs, so that investors can recognize the cruelty of the A** market.
Foxit Software, IPO in August 2020, listed on the Science and Technology Innovation Board on September 8. The issue price is as high as 23853 yuan shares, the issue price-earnings ratio is as high as 19142 times, issuing **12.04 million shares.
Listed in 2020, non-net profit loss was deducted in 2021, net profit and non-net profit loss were deducted in 2022, and losses will continue to be lost in 2023, and the loss will increase significantly. The stock price has already broken, and the breakage is more than 60%.
1. ** Release. The IPO price of Foxit Software is as high as 23853 yuan shares, a PDF software, the issue price is so high, it's outrageous.
2. High valuation issuance. The price-to-earnings ratio of the IPO issuance is as high as 19142 times, the IPO market value valuation is as high as more than 10 billion yuan. In the fiscal year before listing (2019), the company's revenue was only 36.9 billion yuan, net profit is only about 74 million yuan, and total assets are only 46.4 billion yuan, net assets of only 33.3 billion yuan. How can such a company be valued at more than 10 billion yuan? Why the issue price is as high as 238$53 shares? Why can the issuance of 25% of new shares take away more than 2 billion yuan from shareholders?
3. Over-fundraising. The company's prospectus intends to raise funds 40.7 billion yuan, the actual raised funds 287.2 billion yuan, after deducting the issuance costs, the net funds raised were 258.6 billion yuan, more than 2.1 billion yuan overraised. The raised funds are several times the company's assets.
4. The listing and issuance fee of Foxit Software is 28.5 billion yuan, of which Xingye ** shares *** and Guotai Junan ** shares *** received sponsorship and underwriting fees of 26.7 billion yuan.
5. Performance changes. Foxit Software made a profit in the year of its listing in 2020. In 2021, the net profit will drop sharply, deducting the non-net profit loss; In 2022, both net profit and non-net profit will be loss; The 2023 annual results are expected to increase the loss.
6. The stock price broke. Foxit Software's stock price rose sharply on the first day of listing, and the stock price broke a month later. At present, the stock price is as high as 60% compared with the issue price.
7. Cash-out. A number of venture capital shareholders continued to cash out after the lifting of the ban on restricted shares.
Foxit Software was founded in 2001, the company was established for 18 years, and only accumulated 3With a net asset of 3.3 billion, 25% of the new shares were listed and issued, raising more than 2 billion funds at once, which is several times more than the net assets of 18 years of listing. In the second year of listing, the company began to lose money and continued to expand.
After the registration system in 2019, the new shares listed not only took away the huge cash of shareholders and the people, but also injected a large amount of bubbles into the market, and more seriously, it brought more thunder to the A** market. Especially those **, high-valuation new stocks, sub-new stocks, which can make investors lose their money.
Such a distorted IPO not only brought a large area of shareholders and the people, but also destroyed the credit foundation of the market, lowered the moral bottom line of the market, and disrupted the order of the market.