Gem three high facing down PE/VC looking for the next stop

Once, the gem opened the board to cause the cheers of innovative enterprises, gem Company high stock price, high P/E, high raise funds also attracted many investment in the pe/vc of the carnival. Nowadays, the gem "Three High" tide falls, the market valuation returns, the one or two level market price difference Falls, the exit return drops abruptly, PE/VC has to seek the new development to upgrade, looks for the next station after the gem.

In the new Sanbanxi expansion of the normal background, a group of prescient investors have been ambushed, while others are bullish on the prospects of mergers and acquisitions market, and began to put into action. However, some people in the industry frankly, in the transfer board system is not perfect, mergers and acquisitions restructuring system increasingly severe situation, to achieve the project exit is still not easy. Investors called for the gem market should be more inclusive, appropriate to reduce the threshold of listing.

Encounter "Davis double Kill"

Since the opening of the board since 2009, the gem market has begun to take shape, as of July 8, the gem market listed companies reached 333 home, the total market value reached 872.1 billion yuan. The growth of the gem market also benefits the PE/VC industry. Statistics show that the gem listed companies in nearly seven companies with PE/VC background.

Gem IPO has gradually become the main channel of PE/VC exit. The Qing Branch Research Center data shows that, in the first half of this year, PE/VC 68 domestic market IPO exit in the 32 pens occurred in the gem market. Gem set up early, the issue of "three high" phenomenon is more serious, a lot of early investment in the PE/VC through the gem of the return of the IPO is quite abundant, even Ding Hui Venture chairman Wu have said that PE/VC is one of the biggest beneficiaries of the gem.

However, the high return situation is changing. In the context of the stock market downturn, the gem market suffered a heavy blow, the gem refers to the new low. As of July 8, the gem refers to 737.29 points, compared to the end of 2010 1200 points, has fallen 40%, the P/E is constantly being pulled down. Meikian, a partner in the Orient, says valuations are already in a lower position after a round of adjustment than the 60-and 70 times-fold earnings ratio.

At the same time, in the "National PE" upsurge in a large number of funds into the PE industry, the first market has been "high fever", many projects have been close to 20 times times share price-earnings ratio, one or two-tier market spreads have been narrowing the partial IPO exit almost unprofitable. Dongguan Securities under the direct investment company East Card Kam Letter General manager Zhang Jing Chunqing said that the current level of the market above the money too much, the company is now asking too high, can not invest a lot of items. The research center of the Qing branch thinks that the lower average return of the IPO shows that the valuation of the two-tier market is gradually rational return under the new policy of the SFC, but for PE institutions, the low return multiples will affect their enthusiasm to adopt the IPO exit mode.

On the other side, in the context of slowing growth in the domestic economy, the quality of enterprises has been affected by the decline of the economic cycle and the PE/VC industry. Some PE/VC investment projects because the enterprise performance failed to meet the requirements, had to postpone the listing plan, the withdrawal cycle is prolonged, aggravating the investment cost. Deep Venture President Li Wanshou to this quite feeling: "We invested last year, almost half enterprises can not achieve the commitment of performance, investment costs in a sharp rise." ”

The impact of this economic cycle is also reflected in the two-tier market. At present, the more stringent Enterprise Board company delisting system in May has begun to implement. Many venture capitalists worry that the gem because of the small size, vulnerable to external environment, once due to the performance of the market, "back to the city than exit early", pay very likely "wasted."

Looking for a new "blue sea"

In this context, some institutions have a fancy for the new Sanbanxi market with lower distribution conditions. According to the current regulations, the new Sanbanxi listed companies do not make a rigid provision of profits, while starting also not subject to the social public shares not less than 25% of the provisions.

The data show that 2012 to date, there have been 8 new Sanbanxi Enterprises announced the announcement, behind the 7 VC/PE Institutions, VC/PE investment scale of up to nearly 90%. "The new Sanbanxi than the motherboard, gem more market-oriented, because it to the requirements of enterprises have no hard indicators." Hu Shoumao, senior manager of the private equity financing Department of GF Securities, believes that the future of the new Sanbanxi market will have a lot of room for development.

There are also calm watchers. Li Wanshou that the current unified market has not formed, the regional market constraints make it very difficult to achieve the full information communication and full symmetry in the country, the transaction is difficult to play an effective role. Secondly, there is no strict information disclosure system and strict market maker system, the transaction is not active. Third, the Sanbanxi market and the gem and the board has no docking between the green channel, the problem has not been resolved. "If there is a clear institutional arrangement in the future, we will pay close attention to this section." ”

In fact, the regulatory layer is also constantly pushing forward the construction of new Sanbanxi. In June this year, the SFC issued the "unlisted public company Regulation (draft)" To further the expansion of new Sanbanxi to remove obstacles. Hu Shoumao July 4 to participate in the supervision of the organization of the discussion, it was revealed that the new Sanbanxi transactions will be implemented market maker system, in Beijing set up an exchange specializing in the new Sanbanxi transactions, the new Sanbanxi company to achieve the gem or the conditions of the SME board can be directly in the Beijing exchange to take a continuous auction mode

The new Sanbanxi brings "new opportunity" at the same time, some investors also saw the merger market this piece "Blue sea", the PE/VC merger exit case Rising. Mergers and acquisitions funds have sprung up, such as Citic Securities under the recent establishment of gold and Acquisitions fund, even some originally focused on the securities market investment in the Sun Private also joined the "melee", for example, Jingliang investment Liao Lihui in the recent joint industrial capital to set up Jingliang Big Merger fund.

However, institutional barriers have also deterred some institutions. Li Wanshou that the current merger and acquisition system on investment enthusiasm and enthusiasm will be a big blow. "With the support of institutional innovation, we can expect that in the next 3-5 years, mergers and acquisitions will become a very active sector outside the IPO." ”

The gem should increase the tolerance

In fact, whether it is a new Sanbanxi exit or a merger exit, although the concern of the increasing number of people, but only a PE/VC industry trends. Investors are admitting that the IPO exit will remain the mainstream channel for some time to come. There is an industry appeal, the appropriate reduction of the threshold of gem listing, improve the growth of the gem tolerance.

In the two years since the start of the gem, there are more than 200 enterprises listed in the overseas market, including the Internet or education industry and other emerging industries leading enterprises. Fu Binhui, director of management, Shenzhen Enterprise board, said from the current situation, the gem of innovative enterprises and services to further improve the space, there are a number of new economic characteristics, innovative ability than strong outstanding enterprises, now can not be listed on the domestic gem, these enterprises to go overseas to the listing, To a certain extent also reflects the current growth of the scale of the gem has yet to be further improved.

Wang, chairman of Shenzhen Venture Capital Association, believes that the current gem issue has two sets, but in fact the listed companies are the first set of school draft standards. "This is against the original intention of the gem, will be those with high growth, innovative ability, the future market potential of small and medium-sized enterprises, especially small strategic start-ups are blocked in the listing threshold." ”

The issuing system of GEM has the color of administrative interference. "Wang further suggested that gem IPO should expedite the transition to the registration system, the supervision and issuance of the audit system separation, the exchange is responsible for the issue of audit, under the SFC to establish a special issue audit center, the implementation of the firewall system."

Li Wanshou that the gem should be appropriate to the bubble and high P/E has a certain tolerance. "As the main concern of the gem is the beginning of the enterprise, can not take the SME board or a A-share of the mature price-earnings ratio to its requirements, should tolerate its higher p/E, because it also contains the gem of the future growth of the listed companies affirmation. ”