Equity· IPO

Guolian Securities’s IPO debut on Shanghai Stock Exchange today

minutes 2020/07/31 02:24:44

Jul 31, 2020 (China Knowledge) - Guolian Securities (601456) to start trading on the Shanghai Stock Exchange - Main Board today, at a public offering price of RMB 4.25 per share, raising RMB 2.02 bln. Its initial listing shares account for 20% of total outstanding shares. The company’s initial price-to-earning ratio (PE) stands at 19.6.

Nanjing Securities, Hua Ying Securities acted as the lead underwriter, and Nanjing Securities served as the sponsor for the IPO.

Earlier, Guolian Securities said its IPO was 675 times oversubscribed. Since 2019 to date, A-shares IPOs achieved median oversubscription of 2,373 times and the highest at 8,375 times. We expect the IPO to hit limit of 44% increment in its first day of listing. For subsequent 30-day trading the performances can be obtained from our China IPO Weekly.

Guolian Securities Co Ltd is a company mainly engaged in securities related businesses. The Company operates six business segments. The Securities Brokerage business segment is engaged in agency trading of securities, agency sales of financial products, futures intermediary introduction broker (IB) and investment consulting services. The products included in the agency sales of financial products mainly include third-party fund products and third-party trust products. The Investment Banking business segment operates stock underwriting and sponsorship business and bond issuance and underwriting business through its subsidiaries. The Asset Management and Investment business segment is involved in management of collective assets and directional assets. The Securities Investment business segment invests in stocks, funds, bonds and options. The Credit Trading business segment is engaged in securities margin trading and other businesses. The Company also operates Other business segment.

In financial year 2019, Guolian Securities garnered a total revenue of RMB 1.62 bln, up 64% YoY. In terms of net income, it achieved RMB 521 mln, up 931% YoY. Accordingly, return on equity (ROE) and return on asset (ROA) stood at 6.63% and 2.1% respectively, earning per share (EPS) of 0.27 RMB.

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