Societe Generale securities IPO price cut 27.5% still keep break risk

September 20 News, Industrial Securities issued a notice this evening, the issue price range is set at 9-10 yuan/share, 17.59 times times the corresponding P/E ratio-19.55 times times, the above price range compared to the road when the main underwriter UBS issued 10.6-13.8 yuan/share of the highest cut by 27.5%.　　However, Societe Generale still faces the risk of listing a break.　　The main underwriter overestimated the price has been in the former Shanghai and Shenzhen Road performance, Societe Generale Securities underwriter-UBS Securities offered a price proposal range of 10.6-13.8 yuan/share, from today's announcement, this price is clearly denied by the market. UBS Securities that Societe Generale securities reasonable value of 23.2 billion yuan, corresponding to the issuance of equity 263 million shares, a reasonable price per share of 10.6 yuan/share.　　And the 13.8 yuan valuation cap for the first half of the year, Societe Generale securities earnings of 0.17 yuan, its dynamic P/E ratio reached 40.6 times times, in the listed 13 brokerages, only the Pacific, Southwest Securities and northeast Securities three valuation than Societe Generale securities higher. It is clear that institutional investors involved in roadshow are not optimistic about such a high valuation, and that the recent market is again in the process of adjustment, so high valuations are not in the hot pursuit. This also led to the agency's online subscription initiative is not high. The announcement said, Industrial Securities preliminary inquiry period to provide a valid quotation (refers to the price is not less than 9.00 yuan/share) of the placing of the object of a total of 65, corresponding to the number of purchase and 611.9 million shares, oversubscribed subscription 11.63 times times.　　This and prior to Everbright Securities oversubscribed subscription 142 times times and investment securities oversubscribed 73.23 times times a big difference. After the price issue still face break risk compared to the main underwriter UBS gave a lower valuation of 10.6 yuan, Societe Generale in the announcement of the 9 yuan to finalize the lowest price, the lowest price cut 15%.　　However, online purchase location 10 Yuan, if no accident, this price will be the final offer.　　However, the price of 10 yuan is not insurance, in the recent market downward correction of the market in Societe Generale securities still face the risk of break, the major securities analysts give the purchase prices are basically below 10 yuan.　　Merchants Securities believe that securities brokerage stocks at present low, the current market on the enthusiasm of stock brokers is generally not too high, that Societe Generale securities reasonable price of 8.6 yuan per share, and recommended in the 8-9-yuan range of active purchase. Guo Xin Securities analyst Shaozichin that the reasonable valuation range of Xingye Securities is 8.52 yuan to 9.41 yuan per share.　　He said, based on the current securities industry, the old profit model has been broken, the new profit model has not been established, the Commission price war far from the end of the judgment, if investors are interested in purchasing, it is recommended to choose not to lock the regular online purchase.　　Guotai Securities in the report that the market position of Xingye securities should be similar to the macro source and the Yangtze River, Guo and so on, the two-tier market reasonable pricing should be at 8-10 yuan, the proposed price for the inquiry interval of 7-8 yuan. Changjiang Securities Liu June in the report that the base of Industrial Securities commission rate is low and fast, combined with high income costs, to a certain extent, weaken the profit contribution rate of brokerage business; In addition, the company votedLine and self-management business performance growth rate is limited, coupled with the performance contribution of the self-employed this year is low, the annual EPS is expected to be 0.33 yuan in 2010, the proposed initial inquiry interval is 9.05 to 11.07 yuan. If the price of 10 yuan to calculate and issue 263 million shares, Industrial securities IPO will raise no more than 2.63 billion yuan. (Xiao from Shanghai)