Market forces slightly ABC's a-Share pricing game

Hu Yongping Ouyangxiao Red Agricultural Bank A-share pricing range finally showdown. On the evening of June 28, the Shanghai Stock Exchange issued an inquiry into the issue of agricultural Bank of China, said that the price range to determine the Agricultural Bank issued 2.52 yuan/share-2.68 yuan/share.　　Market participants expect AgBank to end up with a 2.68-yuan range ceiling issue.　　Most institutional investors believe the price is lower than ABC's fundamentals, but it should be valued more than the current a-share market, but the odds of a break are already getting smaller. As the last large state-owned commercial bank listed, ABC's IPO inquiry and communication process inevitably has some "apportionment" factors, but this newspaper interviewed the insurance, funds, central enterprises, financial companies and trusts, some investors said that the pricing process, investors do not suffer too much influence,　　The result is still very marketable. Avoid break a fund company head to this newspaper disclosed, AgBank has met several times during the roadshow, repeatedly communicating with them, and saying that AgBank is in fact unable to fully replenish its capital adequacy ratio and provisioning after the IPO, so that the next round of refinancing will be taken, and the country would have some overall consideration of the big bank refinancing, This time, AgBank's IPO pricing ensures that the next refinancing scale does not exceed 20% of the size of the IPO financing.　　This bottom line basically falls in 2.52 yuan/stock to 2.68 yuan/stock this price range.　　Close to underwriters disclosed that the lower limit of 2.52 yuan is the underwriters and ABC negotiated about 13 times times the subscription multiples, the 2.68-dollar limit of the determination in fact there is an underwriter and issuers think reasonable subscription multiples, while comprehensive consideration, there are some fine-tuning. "All the big caps this year have fallen below the IPO price, ABC Price in 2.5-2.6 yuan, so listed after the stock will not continue to lower than the issue prices, we have calculated, the real price should be 2.7 to 3 yuan, if sent to 2.6 yuan, is equal to the market to set aside 1 cents security border. In this case, if the fall is a market thing, not the issue of ABC pricing.　　"Xinhua Life Asset Management Company, said the relevant person. "The pricing range is already very narrow and the institution offers a concentration. If not in accordance with the ceiling of the purchase, the possibility of the purchase is relatively large, there are several days of capital costs, have been shortlisted in the preliminary inquiry, there is no need to be in the net when the purchase of the risk of the purchase at the lower limit, unless it is really not want to.　　"An investment person from a central enterprise finance company said to this newspaper.　　But Xinhua Life Asset management Company believes that the current distribution interval price is more reasonable, although AgBank wants to secure the CAP issue, but not necessarily secret will keep, which requires market, investors and supervision to reach consensus, unless the rate reached 20%-30%. July 1, the Agricultural Bank launched the launch of the network, a preliminary inquiry to submit a "valid offer" of the state-owned finance company investors said the company will be the ceiling price payment. For a A-share underwriters, there are still some tension, after all, not all real goldSilver to account, the initiative is still in the hands of investors, whether can be issued by the ceiling remains uncertain. Market Power Agricultural Bank Vice President Pan on June 19 in the headquarters of the anti-road performance, said the hope that the price can be satisfied with the investors can also be satisfied with the agricultural Bank, in order to achieve a total win.　　However, ABC chairman Junbo on some occasions expressed at less than 2.8 of the price does not have to quote. "We understand this as ABC is good and valuable, rather than ordering fund companies to buy, so basically we don't use the price as a reference," said a senior executive at a large fund company.　　"So the fund company used a step-style offer to carry out a preliminary inquiry of ABC, including the price below 2.8 yuan." And some of the Agricultural Bank of the special Household, annuity and other business fund companies have experienced a dilemma and communication, but also chose to "rational" price to participate in the inquiry. "Our offer will not be ridiculously low, and we are also exploring the results of a total win, even if it is a so-called exchange of benefits." "Investing in ABC is a configuration requirement, and we do not expect it to produce significant returns within a year, whether it generates revenue or not, as we see in the entire market," said the senior executives.　　"However, overall, the fund is relatively low prices, insurance and finance companies to actively invest more than the fund is stronger, for them to invest and liquidity needs." If the strategic investors and online subscriptions are counted, China life for the AgBank A-share IPO of the largest number of investors, insiders said that the online inquiry when the quotation is very close to the final price range. The person said: "Prior to communication, but the price has not been arranged in advance, is entirely the price of the market, is our basis on the basic judgment of ABC, rational price." Insurance institutions are generally not at risk of paying higher prices in view of their absolute income. "ABC's IPO issued by the strategic investors targeted placement, the net to the inquiry object and the allocation of online funds purchase and distribution of a combination of the way."　　Among them, the strategic placing of a share of green shoes after the full exercise of 40% of the size of the issue, the callback mechanism before the launch of the net issued about a share of green shoes after the full exercise of 18.8% of the size of the distribution, the rest of the distribution to the Internet. Many central enterprises both as ABC's a-share strategic investors, but also to finance companies as the main body of the network under the inquiry and purchase, the enterprise and China Life as the general price comparison near the final pricing range.　　But some small money that is far from the core information is susceptible to underwriters and market rumors. "Large-market stock inquiry will not be too big deviation, if the price is too high, according to the current distribution mechanism is required to subscribe to the whole, so, if the fund, insurance agencies to take 10 billion yuan subscription price of the 3 yuan Agricultural Bank, no one dares to do so, it is not just to give AgBank face, the market is not so ineffective.　　"Taikang Asset management company, said the relevant person. An investment manager at a central enterprise finance company said: "There are indeed various relationships to persuade the centralThe company's top executives are listed on the market for AgBank, and AgBank wants more companies to take stakes in the group rather than finance. But certainly no sasac to interfere with the investment autonomy of central enterprises, not ' red-headed ', even verbally I did not hear, such words will make international jokes.　　He said that at present for the Central enterprise finance companies, investment income requirements are higher, but agricultural Bank is more special, can be used as long-term investment products. According to a middle-level central enterprise, the Agricultural Bank of China's IPO to strategic investors in the placement of the number of participating companies will be a record, including several large domestic enterprises. This part accounts for a share of green shoes after the full exercise of 40% of the size of the issue.