After waiting for more than four years, the bank suddenly withdrew its ipo application. What happened?Here comes the latest response

2022-06-03 0 By

A shares queued for more than four years, Xiamen Rural commercial bank chose to take the initiative to adjust the listing plan.According to the basic information of companies applying for initial public offerings on the Main board of the Shanghai Stock Exchange disclosed by the CSRC, xiamen Rural Commercial Bank has withdrawn its application.That means the bank has withdrawn its IPO plans.In response to this, Xiamen Rural Commercial Bank to the brokerage China reporter said that the bank adjusted the listing plan is based on the equity optimization purpose, intended to use the adjustment period to comb and optimize the equity, for the next steady development and re-application for listing to build a solid foundation.According to incomplete statistics, in recent years, shengjing Bank, Huishang Bank, Harbin Bank, Guangzhou Rural Commercial Bank and other queuing banks have withdrawn their A-share listing applications, but have not yet returned to the queue.Weihai Bank turned to the Hong Kong stock market after withdrawing its a-share listing application.According to information on the CSRC’s official website, it has received the withdrawal application from Xiamen Rural Commercial Bank.Before this, the bank’s a-share listing queue status for “pre-disclosure update”.It is understood that Xiamen Rural Commercial Bank was restructured from local rural credit cooperatives in July 2012. In May 2017, it completed listing guidance filing in Xiamen Securities Regulatory Bureau and accepted CITIC Construction Investment Securities’ listing guidance.At the end of 2017, XIAMEN Rural Commercial Bank formally submitted an IPO application to the CSRC and was accepted, becoming the second local legal entity bank in Xiamen to join the a-share queue.According to the prospectus, the bank plans to list shares on the Shanghai Stock Exchange, and the total number of shares to be offered will account for no more than 25 per cent and no less than 10 per cent of the total post-issue share capital.At present, apart from Xiamen Rural Commercial Bank, jiangsu Dafeng Rural Commercial Bank is the only bank in the queue that submitted the declaration materials in 2017 and has not completed listing, which plans to be listed in Shenzhen Stock Exchange.In response to the withdrawal of the application, Xiamen Rural Commercial Bank responded to the brokerage China reporter that the bank took the initiative to adjust the listing plan, based on the purpose of equity optimization, intended to use the adjustment period to comb and optimize the equity, for the next steady development and apply for listing again to build a solid foundation.In fact, since the outbreak of COVID-19, the production and operation of private shareholders of small and medium-sized banks have been greatly affected by the epidemic, resulting in a lack of liquidity, high equity pledge rate and frequent equity changes.Xiamen agricultural commercial bank has not been spared.A total of 176 million shares of XIAMEN Rural Commercial Bank held by Zhongrong Xinda Group will be auctioned on ICBC’s e-purchase platform from February 20 to 23, with a starting price of 972 million yuan. The disposal unit will be the Shanghai Second Intermediate People’s Court, according to information from ICBC’s e-purchase platform.According to the bank’s annual report, Zhongrong Xinda Group holds 4.72% of the bank’s shares, making it the bank’s sixth-largest shareholder and one of the bank’s major shareholders with board seats.This auction is also the rong Xin group in the bank of all holdings.Earlier, all the shares held by Hongxin Weiwei Investment, the seventh shareholder of XIAMEN RURAL Commercial Bank, were also divided into 195 pieces for public auction in December 2021, with a total starting price of 430 million yuan.In addition, 44 million shares of the bank were split into 88 shares and about 24 million shares were auctioned in September 2020 and July 2021, respectively.From the actual clinch a deal, the aforementioned split auction equity ultimately by individual investors bid bid.Compared with other rural commercial banks, the shareholding structure of Xiamen Rural Commercial Bank has another significant feature, that is, the proportion of state-owned shareholders is relatively high.It is understood that under the leadership of xiamen Municipal government, the bank introduced four local state-owned enterprises as shareholders during the restructuring. By the end of September 2021, the total shareholding ratio of four state-owned enterprises, Xiamen Xiangyu Asset, Xiamen Port, Xiamen International Exhibition and Xiamen International Trade Finance Holding, reached 27.72%.’The Xiamen municipal government has a strong willingness and ability to support the bank if needed, given the local government’s record of supporting the bank in restructuring, the disposal of non-performing assets and business development since its establishment, as well as its importance in the local financial system,’ the rating report from China Credit Said.As of the end of November 2021, the asset scale of Xiamen Rural Commercial Bank was about 128.5 billion yuan, down slightly from the beginning of the year, according to China Money Website.From January to November, the bank achieved operating revenue of 2.51 billion yuan and net profit of 860 million yuan.In terms of asset quality, by the end of November 2021, the non-performing loan ratio of the bank was 1.29%, 0.44 percentage points higher than the beginning of the year, but 0.21 percentage points lower than the end of September.Provision coverage fell 60 percentage points from the start of the year to 193%.In addition, according to the brokerage China reporters understand that since 2021, Xiamen Rural Commercial Bank has made great progress in deepening reform.In the first half of this year, the bank adjusted the organizational structure of the head office in accordance with the principles of streamlining and efficiency, separating the front, middle and back office, and focusing on customers.In the second half of the year, large-scale cadre competition was held to release new dividends for the development of the whole bank.The relevant person in charge of Xiamen Rural Commercial Bank also told securities Dealers China reporters that the adjustment of the listing plan, just adjusted the pace of work in the stage, the overall direction and determination of the bank to continue to declare the listing has not changed.The bank, according to a new five-year plan “difference” during the development of the whole goal is to create “good Banks” good place, realize the successful listing, become deep local, prominent main business, operating stability, high efficiency, characteristic, good performance, the customer is supreme, employee satisfaction of community Banks and pratt &whitney financial practitioners.In fact, there is A precedent for banks lining up to withdraw their a-share listing applications.Among them: in March 2017, shengjing bank announced that, given the bank a-share listing application during the trial, the bank’s board core members and changes in equity structure, according to A recent communication with the China Securities Regulatory Commission and its a-share listing application related agencies of careful research and consultation, the bank decided to withdraw the a-share listing application.In February 2017 and February 2018, Huishang Bank announced twice that the bank “still needs to further negotiate with individual directors and shareholders on some matters related to relevant laws and regulations and requirements of the CSRC”, and decided to withdraw the A-share issuance application after studying with intermediaries and deliberating and approving by the board of directors.In March 2018, Bank of Harbin announced that in view of the “possible changes in the shareholding structure of domestic shares”, it decided to withdraw its A-share listing application after studying with the sponsors and reviewing and approving the board of directors, and would restart the A-share listing application after the completion of the shareholding structure change.In August 2018, Weihai Commercial Bank decided to withdraw its a-share listing application after waiting in line for two years.At the time, the bank said it had “decided to withdraw the A-share application in order to raise additional funds through other means in view of the uncertainty surrounding the listing schedule as A result of the overall A-share approval process.”In December 2020, Guangzhou Rural Commercial Bank in A shares will be the day before the sudden withdrawal of IPO application.The bank said at the time that it had decided to withdraw its a-share application in light of “strategic planning adjustments” after careful consideration and research with relevant intermediaries.The announcement also said that the bank’s business operation is good, the withdrawal of the A-share issuance application will not cause A material adverse impact on the bank, the bank will be based on the actual situation of the resumption of a-share issuance application.On the whole, the four h-share listed banks, Shengjing Bank, Huishang Bank, Harbin Bank and Guangzhou Rural Commercial Bank, all chose to withdraw in the process of “returning to A” and have not returned to the a-share listing queue at present.After withdrawing its a-share listing application, Weihai Bank turned to Hong Kong stocks and was listed in Hong Kong in October 2020.Editor: Li Xuefeng