What's going on with A-share going to be big Mac? Who is going to be big Mac
4hw.com.cn: Recently, PICC disclosed its IPO prospectus, which means that PICC is a step further away from returning to A-share market. If the issuance succeeds, PICC will become the fifth a + H listed insurance company and a real giant. Let's see the details below.
Affected by the above news, the H-share of PICC opened more than 2% higher yesterday morning, and then went all the way up to HK $3.96/share, up nearly 8%, then fell back. By the end of the day, the people's insurance group of China had closed at HK $3.86/share, up 5.18% for the whole day, all of which were ranked in the top 50 stocks of Shanghai Hong Kong stock connect and Shenzhen Hong Kong stock connect, with a turnover of HK $506 million. The market value of PICC increased by nearly HK $8.1bn yesterday.
Become the largest A-share financing institution this year
However, the focus of the market is not only on the prospect of China's PICC's return to A-share market, but also on its "Big Mac" style issuance scale. According to the pre disclosure prospectus, PICC A shares are to be issued no more than 4.599 billion shares (accounting for no more than 9.78% of the total share capital after issuance) on the Shanghai Stock Exchange. This means that PICC will become the company with the highest number of issues in the past eight years. In July 2010, after Everbright Bank issued 7 billion shares, the number of new shares issued by subsequent listed companies did not reach 4.599 billion.
According to the data, there are only seven companies that have issued more than 4.599 billion new shares in the history of a shares, namely Agricultural Bank of China (25.571 billion shares), industrial and Commercial Bank of China (14.95 billion shares), China Construction (12 billion shares), China Construction Bank (9 billion shares), Everbright Bank, Bank of China (6.494 billion shares) and China Railway (4.675 billion shares). If PICC finally issues 4.599 billion shares, its issuance scale will become the eighth largest in the history of a shares.
According to the prospectus, before the issuance of a shares, the total share capital of PICC was 42.424 billion shares. Assuming that 4.599 billion shares of a shares were issued and the over allotment option was not exercised, after the issuance of a shares, the total share capital of the group would not exceed 47.023 billion shares, including 38.296 billion shares of a shares and 8.726 billion shares of H shares.
It is worth noting that the net asset per share of PICC before the issuance was 3.23 yuan / share. According to the upper limit of the issuance scale, the net asset per share after the issuance will be 2.91 yuan / share. In addition, with reference to the share prices of Listed Companies in the same industry and PICC's Hong Kong shares, it is conservatively estimated that the capital raising scale of PICC will exceed 10 billion yuan, which is not only a new high in recent years, but also the financial institution with the largest A-share financing scale this year.
Last year, we achieved double growth of revenue and net profit
According to the prospectus, CICC and Anxin securities are the co sponsors of PICC, and the two brokers are also its main underwriters. The joint lead underwriters of PICC also include CITIC Securities and Goldman Sachs Gaohua.
The main shareholders of PICC are the Ministry of Finance and social security foundation. It is understood that by the end of last year, the Ministry of Finance held 29.896 billion shares of PICC (70.47% of the total share capital), while the social security foundation held not only 3.802 billion shares of PICC (8.96% of the total share capital), but also 527 million H shares (1.24% of the total share capital).
In fact, it is not only favored by the Ministry of Finance and the social security foundation, but also the performance of PICC. According to last year's annual report, in 2017, PICC achieved a total operating revenue of 488.141 billion yuan, an increase of 9.78% year-on-year; and a net profit of 16.646 billion yuan, an increase of 16.13% year-on-year, belonging to shareholders of the parent company.
The performance of PICC in 2017 was good, so how about the treatment in this company? According to the data, the salary of the assistant president, Secretary of the board of directors and chief information technology executive officer of PICC is more than 2.5 million yuan, while that of the financial director and shareholder supervisor is more than 2 million yuan, and that of the employee supervisor is also 1.6952 million yuan. In addition, the employee compensation payable of PICC in 2017 was 16.185 billion yuan.