300 billion giants, “lightning will pass”!

In the 11 years since its inception, the GEM has ushered in the largest IPO in history, and Dongfeng Group, which plans to raise 21 billion yuan. The company’s total assets at the end of June 2020 were close to 300 billion yuan.

On December 11, the 55th review meeting of the GEM Listing Committee in 2020 was held. Four companies including Dongfeng Group attended the meeting and all passed the meeting smoothly. This means that 15 years after the H-share listing, Dongfeng Group is getting closer and closer to the A-share listing.

Dongfeng Group, the full name is Dongfeng Motor Group Co., Ltd. According to the prospectus, Dongfeng Group plans to publicly issue no more than 957 million shares and plans to raise 21 billion yuan. According to this amount, it will break the 13.9 billion yuan fund-raising record set by Arowana this year and become the largest IPO in the history of GEM. .

For such a record IPO
There are the following highlights

1. 21 billion: the largest IPO fundraising in the history of GEM
Dongfeng Group intends to publicly issue no more than 957 million shares, with an estimated financing amount of 21.033 billion yuan; the amount of funds raised in one fell swoop broke the record of the highest fundraising since the opening of the GEM at the end of October 2009, surpassing the 139 shares of Arowana listed this year. RMB 100 million fundraising record.
Dongfeng Group has substantially increased its record of fundraising by a single company on the Growth Enterprise Market.

2. “Inquiry” after lightning
In July 2020, Dongfeng Group issued an announcement that it intends to apply for listing on the GEM.
On October 13, the GEM formally accepted the Dongfeng Group’s IPO application; on October 17, Dongfeng Group received the “Flash Inquiry”. The interval from acceptance on the 13th to the inquiry was only 4 days, which is also the largest since the GEM registration system. Fast record.
On December 11, the GEM Listing Committee announced that Dongfeng Group’s first issue was approved and successfully returned to A. It only took 45 working days to successfully pass the meeting.

3. The listing valuation is expected to exceed 200 billion yuan
Dongfeng Group plans to publicly issue no more than 957 million shares, and the estimated financing amount is 21.033 billion yuan. The company’s total share capital before the issuance was 8.616 billion shares.
If the financing amount is divided by the number of shares to be issued, the estimated issue price is 21.98 yuan. According to the total share capital after the issuance of 9.573 billion shares, the estimated listing valuation is 210.4 billion yuan.
If one considers exercising over-allotment and issuing 1.1 billion shares, the valuation of listing is expected to be higher.

4. H shares have risen sharply by about 70% recently
Before sprinting into A shares, Dongfeng Group was listed on H shares as early as December 2005, and it has been 15 years. And recently, when sprinting A shares, the H-share share price has also been significantly boosted. Since the bottom of 4.63 Hong Kong dollars in early October, the latest share price has been 7.86 Hong Kong dollars, an increase of nearly 70%.
Among them, on November 6th, it rose by 26.67%.

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