(Original title: Foxconn fundraising or over 27.2 billion yuan)
Domestic Internet giant loves Foxconn
Yesterday, informed sources revealed that Foxconn has completed the preliminary selection of strategic allotment investors. "The criteria for entry of war-fighting investors are firstly considered whether they can form a strategic synergy with the industrial Internet business. Internet companies that represent 'soft' and 'virtual' companies become the object of choice, and the largest Internet giants in the country are finalizing. The list of strategic placement investors." Some media have commented on this.
It is understood that in recent days, Foxconn has been making full-fledged IPO roadshows, including the selection of strategic distribution agencies and offline inquiry. According to institutional sources who participated in the Foxconn Shenzhen road show, at the scene of the road show, the issuing price given by most agencies was estimated at about 20 times, and the highest price was about 23 times that of the issue price, which was equivalent to industry practice level.
Foxconn’s financing amount is much higher than 27.253 billion yuan
According to Foxconn’s eight applications for fundraising disclosed in the prospectus in detail, a total of 27.253 billion yuan in financing amount was involved. In response, the outside world used this as the financing target for Foxconn’s IPO. However, an informed source interviewed by reporters from the Beijing Youth Daily said yesterday that the amount of Foxconn financing may exceed 27,253 million yuan.
His reason is that, unlike the pre-release manuscript, Foxconn's latest prospectus shows that the amount of funds raised will exceed the demand for the above-mentioned eight major parts and will be used to supplement working capital. Although the amount required for the eight major fundraising projects disclosed in the latest announcement was 27.253 billion yuan, the demand for working capital was not announced. In this case, the current purchase price is not determined, so the total amount of funds ultimately raised remains to be solved.
"Similarly, the issue price of 13.84 yuan/share, which is simply calculated by dividing the market by 275.73 and 19.7, is also inaccurate!" This person said that the issue price of around 13.84 yuan/share corresponds to a issuance price ratio of 17.18. Times; but the current issuance price-earnings ratio is 23 times, if calculated, Foxconn's raised funds will greatly exceed 27.253 billion yuan.
According to reports, the contents of some provisions of the "Administrative Measures on the Issuance and Underwriting of Securities" revised by the regulatory authorities last week were formally publicly solicited for comments. The new amendments may also create uncertainties for the pricing of the Foxconn Industrial Fulian. The 23-fold price-to-earnings ratio before the breakthrough has yet to be observed.
Over-expected financing, CICC is also a big winner
According to the letter of intent of prospecting disclosed by Foxconn, the sponsor institution and the lead underwriter are CICC. Foxconn’s underwriting and sponsorship fees are directly linked to the total fundraising amount. The underwriting and sponsorship fees will be calculated based on 1.26% of the total amount of funds actually raised. This means that if Foxconn eventually raises the total amount of funds it can raise, CICC's single underwriting and sponsorship income will be as high as 343 million yuan.
According to statistics, Foxconn’s initial fundraising was the largest IPO in the A-share market since the listing of Guotai Junan in June 2015. It is also the 11th largest IPO in China's A shares history after China Life. If Foxconn eventually raises the total amount of funds it can raise, the CICC company will also receive the highest single-underwriting sponsorship revenue in the past three years.
According to statistics, since the beginning of this year, CICC has contracted two IPO listing projects. The underwriting sponsorship fee has reached 172 million yuan. In the first four months of this year, IPO sponsors ranked third in revenue. If you add the Foxconn underwriting sponsorship project, CICC will certainly move forward in the IPO sponsors' income rankings in the first half of the year.
Purchase Foxconn, most shares need to lock for one year
According to the disclosure of the prospectus, Foxconn's offline and online purchase time is May 24, and the purchase code is “780138”. The initial number of online issuances is 414 million shares. About 30% of the issued amount after deducting the initial strategic placement quantity. According to calculations, Foxconn’s top-level purchase requires a stock market value of 4.13 million yuan, which is the second highest ever. Foxconn’s signing date was announced on May 28th.
What needs to be reminded is that 70% of the shares issued under the net will be locked for one year, and investors who participate in offline purchases will have no choice but to lock in and must approve the conditions.