The online issuance of new shares on GEM Yiqiao Shenzhou on August 3 has greatly attracted the attention of the market. The issuance of this stock is called “big meat label” by market participants. Because the issue price of the stock reached 292.92 yuan, it became the highest issue price stock in the history of the A-share market.
Based on the issue price of 292.92 yuan, the capital that investors need to pay to win the first signing (500 shares) reaches 1464600 yuan, which is higher than all the book capital of many investors. Assuming that the average increase of 321.11% on the first day of 20 gem new shares listed in July, the profit of China yiqiaozhou will be as high as 470300 yuan. Even based on the lowest increase of 49.73% on the first day of gem new shares in July, the profit of China yiqiaozhou can reach 72800 yuan. This means that Yiqiao China is a veritable “super meat stick”.
Yiqiao China can become a “big meat sign”, which is due to the high price issuance of the stock. After all, the issue price of 292.92 yuan per share has reached a new high in the A-share market. This also reflects the A-share market’s inclusiveness to the market-oriented issuance of new shares. After all, this super high price issuance is unimaginable in the days of non market issuance. Only in the years of market-oriented issuance can such high price issuance become a reality.
Especially not long ago, the market was still angry about the issuance of two new shares of 1 yuan. First, just reading guest culture, the issue price is only 1.55 yuan; The other is Zhengyuan Dixin, and the issuing price is only 1.97 yuan. In the face of the super high price issuance of Yiqiao China, it can be said that one is in the sky and the other is underground, which is really a “double heaven of ice and fire”. These two completely different situations have occurred in the A-share market, which shows that the inclusiveness of market-oriented issuance is very huge.
From the perspective of investment, the low-cost issuance of new shares is more in line with the interests of investors. However, if it is issued at an ultra-low price like readoff culture, it is obviously not conducive to the fund-raising of the issuer. For example, the actual fund-raising of readoff culture accounts for only 23% of the original plan, which is actually unfavorable to the development of the company. At the same time, it also transfers the pressure of enterprise financing to the refinancing after listing. Therefore, issuing too low is not necessarily a good thing.
Of course, the higher the IPO price, the better. Although from a new perspective, new shares issued at high prices are often optimistically called “big meat labels” by the market. However, issuing at a high price actually increases the risk of investors. If the fundamentals of listed companies are not enough to support the issuing price, or in case of a downturn in the market, the stocks issued at a high price are also easy to break, and the “big meat label” will become a “meat cutting label”. Moreover, the stocks issued at ultra high prices are usually stocks with a small share of new shares. For example, Yiqiao Shenzhou only issued 17 million shares to the public, which is just a pocket stock. There are certain problems in the liquidity of the stock, and the secondary market price after the stock is listed is easy to be manipulated by the market. This risk is also what investors need to guard against.
However, the market still agrees with the super high price issuance of Yiqiao China. On the one hand, the market is more optimistic about the development of the company. Yiqiao Shenzhou was founded in 2007, focusing on the R & D and production of recombinant proteins, antibodies, cDNA cloning, ELISA kits, etc. At the same time, Yiqiao Shenzhou is also committed to the R & D and technical services of biotechnology drugs, such as monoclonal antibodies, recombinant protein drugs, virus vaccines, rapid diagnosis, etc. It has a leading production technology platform for monoclonal antibody and recombinant protein drugs, adding 800-1000 kinds of recombinant proteins and more than 1500 kinds of antibodies every year, providing technical services for many multinational pharmaceutical enterprises in the field of recombinant protein and monoclonal antibody R & D.
On the other hand, although the issuing price of Yiqiao China has set a record for the issuance of A-share new shares, the P / E ratio of the company is not high. According to the prospectus, the P / E ratio of Yiqiao Shenzhou is 17.76 times. At present, the company’s industry belongs to “research and experimental development (M73)” in “scientific research and technical service industry (m)”. The static average p / E ratio of this industry in the latest month released by China Securities Index Co., Ltd. is 146.05 times (as of July 30, 2021). Therefore, the P / E ratio of 17.76 times issued by Yiqiao Shenzhou can still be accepted by the market.
Reprint indicated source：Spark Global Limited information