On March 1, Capital State learned that CITIC Securities (600030.SH) issued a pre-plan for the public offering of securities by allotment, intending to allot 1.939 billion shares to original shareholders, and raise funds not exceeding 28 billion yuan. Among them, the number of A-share allotment shares does not exceed 1.597 billion shares, and the number of H-share allotment shares does not exceed 342 million shares.
Enhance the core business, and plan to deploy public offering business before
CITIC Securities stated that the net proceeds after deducting the issuance costs of the raised funds will be used to develop capital intermediary business, increase investment in subsidiaries, strengthen the construction of information systems, and supplement other working capital.
CITIC Securities stated that the necessity of this issuance is to respond to the national strategy, build an “aircraft carrier-level” brokerage, deal with increasingly fierce industry competition, actively participate in international market competition, promote the realization of the company’s strategic goals, and help the company “become the most trusted by global customers Leading domestic and world-class Chinese investment bank”, reducing liquidity risks and enhancing the company’s risk resilience capabilities.
According to an announcement issued by CITIC Securities on February 22, CITIC Securities intends to invest no more than 3 billion yuan to establish CITIC Securities Asset Management Co., Ltd. (tentative name). The newly established subsidiary will engage in securities asset management business, public offering management business and Other businesses approved by regulatory agencies, including public offering of securities investment management business, can only be applied for after the promulgation of relevant laws and regulations. The name and business scope of the subsidiary shall be subject to the approval of the regulatory agency and registration authority. At the same time, after the establishment of the subsidiary, it will take over the company’s securities asset management business.
Net profit ranks among the best among brokerage firms, and the stock price plummeted after the release of the allotment plan
CITIC Securities said in its performance bulletin disclosed on January 22 that the company realized RMB 54.348 billion in 2020, 25.98%; net profit attributable to shareholders of the parent company was RMB 14.897 billion, a year-on-year increase of 21.82%. Net profit is among the best among the published brokerages.
And due to the prosperity and development of the capital market in 2020, the revenue and net profit of various securities firms have generally achieved year-on-year growth.
Haitong Securities ranked second. According to its performance bulletin, the company’s revenue in 2020 was 38.155 billion yuan, an increase of 9.45% year-on-year; the net profit attributable to shareholders of the parent company was 10.875 billion yuan, an increase of 14.20% year-on-year.
According to an article published by the Securities Industry Association of China on February 26, statistics on unaudited operating data of securities companies in 2020 showed that the securities industry achieved operating income of 448.479 billion yuan in 2020, a year-on-year increase of 24.41%, and the entire industry achieved a net profit of 1575.34 100 million yuan, a year-on-year increase of 27.98%, and 127 securities companies achieved profitability.
The securities industry achieved 67.211 billion yuan in net income from investment banking in 2020, a significant year-on-year increase of 39.26%. In terms of IPO underwriting revenue, CITIC Securities also received nearly 2.3 billion yuan in revenue, second only to CITIC Construction Investment.
After the announcement of the CITIC Securities allotment plan, the stock price of CITIC Securities fell sharply by more than 8%. As of the close of noon, the decline of CITIC Securities narrowed to 6.24% to 25.55 yuan.
Reprint indicated source：Spark Global Limited information