Last year, the net profit exceeded 500 million! IPO underwriting "achievement" brokerage investment bank year-end award

In the "small year" of investment banks, the underwriting of IPO surplus shares is quite valuable for investment banks and has become the main source of income for many investment banks.

According to the statistics of IPO issuance in 20 18, the Securities Times reporter found that among the 105 new shares listed last year, the rest were underwritten, contributing 5190,000 yuan in net income to the investment bank. Among them, the net underwriting income of 10 new shares has accounted for more than 20% of underwriting and sponsorship income, and the proportion of Wuxi PharmaTech is as high as 37.77%.

This underwriting, on the contrary, "achieved" the investment bank's capital market department and became its unexpected income. "No one expected that when the year-end award was finally issued, the money turned out to be the capital market department." The person in charge of Shenzhen Branch of a small investment bank in South China said.

The underwriting income of Yu 'ebao exceeds 500 million.

"Because we have few IPO projects, the income of the Capital Market Department was very small before, but last year, because of the underwriting of Yu' ebao, we suddenly contributed 5 million income, which made the entire investment bank look at us with new eyes." A few days ago, the head of the Shenzhen branch of the above-mentioned small investment bank in southern China joked with reporters.

The person in charge said that what their capital market department had done before was to cooperate with the investment bank project team to underwrite and issue shares, and occasionally help other investment banks distribute some projects to generate some small income. However, investment banks had a hard time in 20 18, and there was only one IPO project in the whole year, which made it very difficult to support the whole investment bank.

"No one expected that when the year-end award was finally issued, the money turned out to be the capital market department." It turned out that the only IPO of this investment bank last year was abandoned by many investors after the subscription ended. According to the agreement, these abandoned shares need to be underwritten by investment banks. This underwriting, on the contrary, "achieved" the capital market department and became its unexpected income input, and the scale was not small.

According to the statistics of 65,438+005 new shares issued and listed in 2065,438+08, the reporter found that each of them had abandoned shares, with a total of 29,788,700 shares abandoned. This means that investment banks, as lead underwriters, underwrite to varying degrees.

In terms of the number of shares, Industrial Fulian, People's Insurance Company of China, Jiangsu Leasing, TF Securities, Bank of Zhengzhou and Great Wall Securities finally received the largest number of shares underwritten by investment banks, all exceeding 6,543,800 shares, reaching 3,333,654,300 shares, 2 1.355 shares and 6,543,800 shares respectively. The three new shares with the least abandonment are Nanjing Julong, Baibang Technology and Maiwei, and the number of underwriting shares due to abandonment is 3 1.300, 33,200 and 34,700 respectively.

According to the current calculation method of the income of new shares in the market, these underwriting new shares were sold at the average intraday price on the day when the daily limit was opened, so the above-mentioned 105 new shares contributed 5190,000 yuan to the investment bank, accounting for 9.40% of the underwriting sponsorship income of 105 new shares.

According to the above calculation method, the largest income from underwriting new shares last year was Industrial Fulian, which was exclusively sponsored and underwritten by CICC, and the absolute income from underwriting other shares reached 37.2977 million yuan. There are 7 new shares with absolute returns exceeding 6,543,800+million. Besides Industrial Fulian, there are Wuxi PharmaTech, Contemporary Amp Technology, Ruike Laser, Chang Fei Optical Fiber, Mindray Medical and Qu Ying Technology. The absolute returns of the remaining shares are 34.7609 million yuan,16.838 million yuan and 14.93. 2 yuan.

The three new shares with less absolute returns underwritten by the balance are Nanjing Julong, Zhongyuan Home Furnishing and Du Nan Real Estate. According to the above calculation method of new shares' income, the absolute income is 754,500 yuan, 807,900 yuan and 654.38+005.3 1 10,000 yuan respectively.

Sources of bonus for investment bankers

"To be honest, in the past, investment banks paid little attention to underwriting the remaining shares of IPO. At that time, I felt that it was also a matter for the company's investment department, and the investment bank played the role of channel introduction at most. " The head of the Shenzhen team of a listed brokerage investment bank said that with the increase in the underwriting income of Yu 'ebao, the investment banking department began to pay attention to it.

Statistics show that in 20 108, 105 new share underwriting income accounted for 9.40% of the corresponding IPO project underwriting sponsorship income, close to 10%.

Among them, there are 39 projects in which stock underwriting income accounts for more than 10% of underwriting and sponsorship expenses; More than 20% have 10 project; More than 30% of them have two projects, namely Wuxi PharmaTech (37.77%) and TF Securities (32.95%). Huatai United, Guotai Junan sponsored Wuxi PharmaTech, and Industrial Securities sponsored TF Securities. In other words, in addition to normal underwriting and sponsorship income, these three investment banks have more than 30% underwriting income.

According to the reporter's understanding, according to the internal regulations of securities companies, investment banks were originally not allowed to directly invest in stocks. Previously, the public offering and underwriting were accepted by the self-operated department. However, with the steady profit of IPO underwriting in recent years, the profit scale is getting bigger and bigger, and many investment banks have begun to fight for corresponding rights and interests internally.

It is reported that the current practice of some brokers is that investment banks directly take underwriting sponsorship income as the cost of underwriting the remaining IPO shares. Of course, they still take the company's self-operated channel, and the final liquidation is basically operated by the self-operated department, so the final income is intercepted by the investment bank.

"Now almost every investment bank attaches great importance to this kind of income investment. For some investment banks with few IPO projects, the underwriting income of the remaining shares has become the' fat meat' that investment banks are staring at. " According to the person in charge of the above-mentioned Shenzhen branch, in the "off-year" when IPO projects are reduced and refinancing is increasingly difficult, this "fat meat" has basically become a source of bonuses for investment bankers.

(Article source: Securities Times)