On the evening of July 26, Great Wall Securities “threw out a fixed increase plan, which is planned to raise no more than 10billion yuan from China energy capital, Shenzhen Energy and other fixed increase funds.”. This is also the securities companies that have issued the plan this year, the highest amount to be raised.
Since the implementation of the new regulation of fixed increase last year, the fixed increase market has recovered and institutional investors have a high enthusiasm for participation. After all, under the supervision system with net capital as the core, capital strength is the key factor to determine the core competitiveness of securities companies. However, it is worth noting that since this year, the agreed increase and decrease of bonds have occurred. Not only the amount raised by small and medium-sized securities companies is “shabby”, but also the agreed increase and decrease of 70% for large-scale securities. In this case, the pace of targeted issuance of securities companies has slowed down significantly this year.
Great Wall Securities is not more than 10billion yuan
No more than 1/4 for debt repayment
On the evening of July 26, Great Wall Securities disclosed its plan for non-public issuance of shares. The amount of the company’s proposed raised funds shall not exceed 10 billion yuan (including), and the issuing objects shall not exceed 35 (including). Except for the controlling shareholder of the company, Huaneng capital, Shenzhen energy, Shenzhen xinjiangnan, other issuing objects shall be fund companies, securities companies, trust and insurance institutions investors.
The number of shares issued this time shall not exceed 30% of the total share capital of the company before the issuance, i.e. no more than 931million shares (including). Among them, the subscription amount of Huaneng capital is not less than 2 billion yuan, not more than 4.638 billion yuan, the subscription amount of Shenzhen energy is between RMB 300-800million, and the subscription amount of Shenzhen xinjiangnan is not more than 1236 million yuan.
Great Wall Securities said that the raised funds, after deducting the issuance costs, are intended to be used to increase the company’s capital, supplement the company’s working capital and repay debts to support the company’s future business development, enhance the company’s market competitiveness and risk resistance capabilities and promote the realization of the company’s strategic development goals.
Specifically, the investment to capital intermediary business is not more than 5billion yuan, and the investment in securities investment business is not more than 2.5 billion yuan. It is worth noting that no more than 2.5 billion yuan of the raised funds will be used to repay the debt.
Great Wall Securities said in the announcement that in the process of building “digital securities companies, smart investment and science and technology finance”, more capital is needed to develop wealth management, self-supporting investment, investment bank and asset management, and more funds are needed to strengthen information technology construction and international layout. In order to actively grasp the opportunity of capital market development and realize the strategic objectives of the company, through this private offering, the company will supplement capital on one hand, which will benefit to gain advantages in the industry competition, on the other hand, it can increase investment in various businesses accordingly, so as to cultivate new profit growth points and promote the company to achieve strategic objectives.
Multiple certificates agreed to increase less than expected
The maximum decrease of fund raising amount is over 70%
In recent years, with the deepening of capital market reform in China, the development of the securities industry is becoming more and more differentiated. The monopoly of large-scale securities companies on high-quality issuers has been further enhanced, and the concentration of the industry is accelerating. At the same time, the degree of capital market opening to the outside world has been further improved, and the distribution of foreign securities companies has been accelerated, which further aggravates the industry competition.
The proportion of traditional light capital brokerage business has been relatively declining. Domestic securities companies have begun to get rid of the light asset model relying on license plates and channel businesses. The expansion of balance sheet has gradually become the main source of profit. The importance of capital strength to securities companies has been improved. Many listed securities companies have completed A-share private issuance in recent years, especially last year, The enthusiasm of securities companies is set to increase abnormally.
Specifically, in terms of the fund-raising amount of each, the securities companies “input and supplement” are relatively fierce, with 10 billion levels everywhere. For example, Haitong Securities ranked the top of the list with a total fund raising of 20billion yuan last year. In addition, the five securities companies of China Trust Securities, CITIC Securities, China CITIC investment securities, Tianfeng securities and Zhejiang securities all proposed to raise more than 10 billion yuan last year.