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Foxconn today's purchase price of 13.77 yuan per share will raise 21.7 billion yuan

via:博客园     time:2018/5/24 9:01:52     readed:92

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Foxconn starts road show to raise capital of 27.1 billion yuan

The IPO offer totaled approximately 27.12 billion yuan; the initial strategic placement accounted for 30% of the total circulation, and the strategic placement list was disclosed on May 28

Beijing News (Reporter Liang Chen) On May 23, Foxconn Industrial Internet Co., Ltd. (hereinafter referred to as "Industrial Rich Alliance") held an IPO A Share Online Investor Exchange Meeting at the Shanghai Roadshow Center. On the evening of the 22nd, the company updated the prospectus to disclose that it would issue 1.97 billion shares at a price of 13.77 yuan per share, raising a total amount of approximately 27.12 billion yuan.

Judging from the history of IPOs in the A-share market, this year's fundraising for industrial wealth unions ranked 12th, the largest IPO in the past three years.

May 28 Disclosure Strategy Placing List

The Industrial Fulian’s public issuance will not exceed approximately 1.97 billion yuan of ordinary shares, and will account for 10% of the total share capital after the issuance.

After preliminary inquiry on May 17th and 18th, on the evening of the 22nd, the Industrial Fulian disclosed that, except for the issuance cost of RMB 400 million, the net proceeds raised will reach RMB 26.7 billion. On May 24, investors started online purchases.

The industrial wealth distribution uses a combination of strategic placement, offline distribution, and online distribution. Among them, the initial strategic placement of approximately 590 million shares issued, which accounted for 30% of the total circulation, was divided into 12-month and 18-month lock-in periods to strategic investor placements, while those with strategic cooperation intentions could extend over 36 months. Lock period. The remaining shares are distributed at 70% offline and 30% online.

According to industry insiders, this proposal reveals that the Industrial Fulian may wish to introduce strategic investors to allocate shares, reduce the scale of financing to the market, and reduce the number of tradable shares in the initial period of the listing through the lock-in period market value, thereby alleviating post-listing pressure.

According to the issuance announcement, the 3,321 allotment objects managed by 2347 net investors under the IPO participated in the preliminary inquiry quotation within the prescribed time. However, the Industrial Fulian did not disclose the list of specific strategic allotments in the announcement. Industrial Fulian said that the list will be disclosed on May 28.

Light speed market, special approval

Industrial Fulian is a product of the batch packaging business of Foxconn Technology Group (also known as Hon Hai Precision), an electronic technology manufacturer, seeking for greater value realization in different capital markets.

On February 9th, the official website of the China Securities Regulatory Commission pre-disclosed the submission letter for the industrial wealth prospectus. The current controlling shareholder of Industrial Fulian is Zhongjian Company (41.14% of its pre-issuance shareholdings). The company is an investment holding company and indirectly holds 100% of shares by Foxconn Technology. The main body of the issuer was established by the change of Fuming Technology, which was established in February 2015.

Shortly after the declaration is publicized, the CSRC's issuance department provides guidance to the brokerage companies. If there are any of the four industries in biotechnology, cloud computing, artificial intelligence, and high-end manufacturing, if there is a company customer of Unicorn, report it immediately. Relevant provisions can be implemented immediately after the trial, without queuing.

With this policy, industrial wealthy IPOs were granted all the way. Compared with other companies that have to wait for one and a half years, the Industrial Fulian only used 36 days to attend the meeting, 84 days to get the approval, repeatedly recorded within the business.

Late on the night of May 11, the Securities Regulatory Commission announced that the company’s IPO had received the approval. At that time, the Industrial Fulian had not announced the specific amount of funds raised.

Extension 1

Can the company's performance support the stock price?

Analyst: The company's large system can support the stock price, but the industry's profits are low, and future performance needs to be observed.

According to the disclosure of the Industrial Fulian, the total fundraising amounted to approximately 27.12 billion yuan, corresponding to a price-earnings ratio of 17.09 times. The company's performance can support this price-earnings ratio.

The prospectus shows that the actual controlling shareholder of Industrial Fulian is Foxconn Technology, the direct controlling shareholder, Zhongjian Company, and the wholly-owned subsidiaries, Shenzhen Futaihua and Zhengzhou Hongfujin, indirectly held shares, and other related companies, and the total control of the Hon Hai system. 94.2% of the shares of the industrial wealthy before the public offering. The top 10 shareholders of the company hold about 96.6% of the total shares.

Foxconn Technology injects many of its subsidiaries into this listed entity and directly or indirectly holds 31 domestic subsidiaries and 29 overseas subsidiaries. Among them are quality assets. For example, Henan Yuzhan and Zhengzhou Futaihua, both main mobile phone structural parts, all had net profits of more than RMB 1 billion in 2017.

According to the prospectus, the annual revenue of Industrial Fulian was RMB 35,543 million, an increase of 30.0% year-on-year; net profit was RMB 16,220 million, a year-on-year increase of 12.7%. However, in 2017, the company’s asset-liability ratio was 81.03%, nearly doubled from 2016, and its current liabilities accounted for 99.97%.

Some investment analysts have told reporters that at present, the performance of the industrial rich can support its issue price and price-earnings ratio, but at present the company's manufacturing profits are low, and the future performance needs to be observed.

Extension 2

Does BAT participate in strategic placement?

"Investors pay attention to the corresponding information disclosure documents"

During the 23rd roadshow, some investors questioned when the results of the strategic allotment of the Industrial Fulian will be made public and whether BAT is on the list of strategic allocation investors? Chen Yongzheng, chairman of Industrial Fulian, responded that the company’s strategic allotment results will be disclosed in accordance with relevant laws and regulations. Investors are requested to pay attention to the corresponding information disclosure documents.

For the undisclosed selection criteria for strategic investors, Chen Yongzheng said that it has fully considered the qualifications of investors and the company's long-term strategic partnership and other factors after comprehensive determination, including: a good market reputation and market influence, representing the interests of the public Large-scale state-owned enterprises or their subordinate enterprises, large insurance companies or their subordinate enterprises, state-level investment funds and other investors with strong financial strength; have strategic cooperation or long-term cooperation vision with the company, and have the intention to hold long-term shares investor.

Industry sources told reporters whether BAT involvement is related to the strategy of industrial wealth unions. On May 16th, in a meeting with Jiang Xiangyang, general manager of the Boss Fund under the China Merchants Group, Mr. Gou Ting, chairman of Foxconn Technology, said that the listing of the A shares will inject more Internet genes into the Hon Hai Group.

Extension 3

Foxconn wants to use listed companies to do what?

Industrial Fulian will become the gold extraction pool of Foxconn Technology

Terry Gou had long wanted to tear down the label of the global foundry giant because of low profits and not a long-term business. With the depletion of the demographic dividend in mainland China, a number of production costs have risen. He once put forward the concept of "eight screens, one network and one cloud" facing the future life. However, the arrival of new orders for Apple's mobile phones has made this company more closely tied up with Apple.

This time, Foxconn Technology chose to package all its businesses and restructure the company through the gimmick of Industrial Internet. A securities analyst told the reporter that the Industrial Fulian is not changing drugs, but is now listed on both sides of the strait. It is similar to a company listed on two different stock exchanges.

The prospectus shows that the rich industries involved are rich in business, just like a small Foxconn. According to Gou, the IPO will accelerate the development of new fields such as smart manufacturing, industrial robot production, and artificial intelligence big data. At the same time, through the Foxconn Industrial Internet, 30 million SMEs are empowered.

At the same time, the gate of the A-share green channel was opened, which provided a convenient condition for the listing of industrial wealth under industrial Internet, cloud computing, and artificial intelligence. The aforementioned analyst said that compared with US stocks and Hong Kong stocks, A shares can give Foxconn a higher valuation.

In fact, Foxconn Technology revealed at the general meeting of shareholders that it chose to list in Shanghai. Industrial Fulian can help Foxconn expand related markets, attract talents to enhance global competitiveness, and use the A-share platform to help the Group add an independent financing platform. Working capital and capital expenditure increase more efficient financing channels.

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