God-level Trader of Rebirth

Chapter 407 The Road to IPO
Who would have thought that Air China's IPO would not be easy.

The summer of [-] was very hot.

The Three Gorges Dam has just been completed, and the even bigger Qinghai-Zhuhai Railway has also been fully opened to traffic.

Looking around, the economic situation is very good.

The stock market was also good. It started from less than 1700 points and slowly rose to [-] points. However, millions of stockholders were still at a loss. There was a long-suppressed atmosphere in the air. It felt like a storm was coming at any time, but it just didn't come.

The China Securities Regulatory Commission has strictly investigated the manipulation of stock prices, and dealers have been arrested one after another. There is still a huge market in terms of casinos and overthrows, and no one dares to say that a bull market is approaching.

After all, since the establishment of Huaxia stock market, the highest point is only 2245 points.

It is still the result of multiple favorable policies.

1700 points is indeed very high.

Even the CICC and institutional sales managers in China, who keep their promises, have the same caliber externally: "The stock market has risen a lot, and it is out of the value range. It is recommended to sell."

It happened at this time that CICC received a task - to sell Air China's IPO.

Air China, the only airline in China whose aircraft has printed the "Five-Star Red Flag".

In addition to carrying passengers in commercial operations, it also undertakes the task of traveling on special planes for some special people.

It can be said to be very important.

Looking at the advertisements shot by Air China and the neat uniforms of the crew, most people would think that this is a very tall company.

In fact, the throat of this company is often tightly choked by the dollar and oil, making it impossible to breathe.

Aircraft purchased by Air China are all purchased in U.S. dollars, and are basically loans.

Therefore, the trend of the US dollar will cause huge fluctuations in the profits of Air China.

In addition, aviation kerosene is needed to fly an airplane. However, in the summer of 2006, the price of crude oil was very expensive. In April, the price of oil exceeded 70 US dollars. By the end of July, the day after Air China released its prospectus, the price of oil directly exceeded 80 US dollars.

Air China knows this, and so do major market investors.

So, in this formal environment, will Air China make money or lose money?

How can Air China resist fluctuations in the U.S. dollar?
The upward trend of oil prices is so obvious, how does Air China hedge against it?If there is even a small accident, where will Air China's stock price go?
Regarding these buyer issues, the leaders of Air China and AVIC Group are very calm and confident.

In the whole of Huaxia, as long as there is a certain level, which travel is not on the Air China special plane, such as China Eastern Airlines, China Southern Airlines, and Hainan Airlines, can they be compared?

Moreover, in the history of China, there has never been a situation where the IPO scale has shrunk. What are you afraid of?Once Air China's new shares are issued, isn't it just a dozen daily limit?
For the underwriter, CICC, it is even more of a problem.

As the No.1 local investment bank in China, CICC's investment bank brand is not a bragging rights.

Not only did he work in the building with the most expensive rent in Huaxia, but he also had a special motorcade to send employees home in the middle of the night. He sold the most difficult bonds in Huaxia and underwrote the stocks that were least likely to be issued.

When a state-owned enterprise such as Air China goes public, the escort is none other than CICC, and it will never fail!

In their eyes, selling an IPO is easy.

It is only necessary to arrange for a few researchers to memorize the bidding documents, wear suits and ties, and make an appointment for the road show. A large group of people rushed into the lobby of the seller's house. Then collectively smiled at several young researchers who had just graduated from the seller, and asked questions
Isn't this easy?
However, this IPO was unexpectedly difficult, and the process was full of twists and turns, and all kinds of impossibilities became possible.

On July 27, [-], Air China released its prospectus, preparing to issue [-] billion new shares to mainland investors.

Regarding the price, CICC helped the issuer find out the bottom line in private, and the result was very bad.

So they deliberated and finally set a low price of 2.75-2.95 yuan, which is not optimistic.

But even so, the overall financing target is as high as 80 billion yuan.

Among them, 3.5 million shares were allotted strategically, and the remaining shares were divided into half and half offline and online, each with 11.75 billion shares.

This is all standard action for large IPOs, nothing new.

But what is strange is that Air China's offline placement is extremely cold.

Of the more than 200 institutions that qualified for quotation, only 36 submitted the "Purchase Form" that day.

However, most of these 36 companies were forced to do so by the institutional salesmen of CICC.

In this way, when the quotation was submitted, there were still 9 companies who deliberately wrote wrong prices or other information, resulting in invalid quotations.

Think about it, what kind of IPO is an IPO that can make a financial investment institution that is extremely serious about numbers deliberately invalidate its offer.

Almost all public funds believe that the risk of Air China is too great, and it is an obvious loser.

Not to mention that there is still a one-year sales restriction period for the allotment of shares. What if such a large market falls to one piece?

The staff of the market investment department of CICC, who is responsible for the calculation, found that the total amount of purchases was far lower than expected, only 28.65% of the total issuance plan.

This issue seems to be a lost cause.

If even a large state-owned enterprise such as Air China fails to issue A-shares, one can imagine the fate of such state-owned enterprises as Industrial and Commercial Bank of China and Datang Power, which are waiting to be listed on the CICC list.

There is no hematopoietic ability at all.

1700 points, and then back to 998 points, is entirely possible.

Facing the list of quotations, CICC pondered hard on how to persuade these bidders to buy more, made all the phone calls, contacted all the leaders, and made all the research to the deepest.

In the end, only Wang Guiwen of Harvest Fund invested 3.36 million yuan and bought 1.2 million shares.

Although it only accounts for 1.07% of the total share capital, it is already very face-saving to be able to buy so much, so don't force others to make things difficult.

With the support of Harvest Fund, Air China's IPO was barely saved.

The whole process was stumbling, and Air China's issue price was continuously lowered, and finally set at 2.8 yuan. In addition to the purchase by online shareholders, the total fundraising amount was less than 60% of the original plan.

After repeated communication between Air China directors and the stock exchange, they got a very auspicious stock code: 601111.

However, this did not bring good luck to Air China.

On the first day of the stock listing, it was sold by shareholders frantically, with a turnover rate as high as 34.79%.

The major shareholder of Air China made a decisive decision and decided to use the nearly 20 billion IPO reserve funds in the secondary market to stabilize the issue price of 2.8 yuan. Whoever dares to sell, the major shareholder of Air China will dare to accept.

This is the first time in the history of Huaxia IPO that major shareholders have committed to increase their holdings.

August 21 is the second trading day after China Air China went public.

Although the stock price opened at a flat price of 2.8 yuan during the call auction stage, after the official trading at 9:30, selling orders poured out again frantically, and Air China's stock price fell steadily.

However, as the traders of AVIC Group continued to invest funds to buy, all these selling orders were caught, and the stock price was also at 2.75 yuan, showing signs of stabilization.

At this time, some sporadic buy orders suddenly appeared on the board, with a few hundred lots more, and dozens or dozens of lots less.
"Chairman, it seems that some retail investors have come in to buy the bottom!"

The trader discovered this situation at the first time and reported it immediately.

"Good! This shows that there are still investors in the market who recognize us. Do you have the confidence to hold on to this price?" The leaders of AVIC Group suddenly felt full of strength.

If the stock price continues to fall, they will be ashamed and thrown home!
Not only is the shareholder's equity shrinking, but it is also a heavy blow to the company's reputation.

"It shouldn't be a problem."

The trader looked at the scattered small orders on the market, and decided to take advantage of this popularity to push up the stock price, and try to free up enough room for control of the market for the next trading day.

As of the close in the afternoon, Air China stubbornly returned to 2.8 yuan.

What a long day!
Wait till night.

Night falls.

Most people are already fast asleep.

An online post quickly circulated among major financial institutions and fund circles.

buzz~
buzz~
Chen Jie had been busy with the company's affairs all day, consuming a lot of brain cells, and finally fell asleep, only to be awakened by the annoying vibration of the mobile phone on the bedside table.

He glanced at the name on the caller ID in a daze, answered the phone reluctantly, and complained:

"Guo Bin, what's the matter, why are you calling me so late?"

(End of this chapter)