On the evening of February 7, 65438, Hemai shares (688032. SH) Announced its initial public offering and listed on the Science and Technology Innovation Board. The company's issue price is set at 557.80 yuan per share.

Based on the 500 shares signed by Zhong Yi, science and technology innovation board, the paid-in capital contribution of investors who have obtained Hemai shares is as high as 278,900 yuan. Some investors said on the Internet that they were afraid to purchase.

From the perspective of system and humanity, why did Baekje Shenzhou and Hemai set the IPO price so high?

Recently, the IPO of Baekje Shenzhou and Hemai shares is the focus of market attention. Because of the high issue price, because offline investors rarely abandon it, and because of the first day of Baekje Shenzhou IPO.

The issue price of Baekje Shenzhou is 192.6 yuan, which is 20-30% higher than that of Hong Kong stocks, and the financing is 25.5 billion yuan. Up to now, the company has made no profit, with a loss of11700 million in 20 years. The money raised is enough for the company to burn for 2 years. Today, the first day of IPO fell by 15%, with a loss of 1.5 million.

Hemai shares have an issue price of 557.8 yuan, a price-earnings ratio of 226 times and a financing of 5.58 billion yuan. The company's revenue in 20 years is 500 million, and its net profit is 65.438+0.04 billion. The IPO raised money that the company could not make in 50 years. It is expected that the probability of breaking is also great.

Why did Baekje and Hemai dare to set such a high issue price? Why can it be sent out? Why did you break your hair again on the first day?

These problems reflect the game between institutional changes and market players, and are still worth digging deep into.

Let's talk about IPO system first.

Simply put, the breaking of new shares is an inevitable trend of IPO issuance system from approval system to registration system, and IPO pricing system from price limit to inquiry system.

In fact, in Europe, America and Hong Kong stock markets, the breaking of new shares is a common phenomenon. I talked to a British fund manager, and one of their strategies was to build a portfolio of short new shares and sub-new shares according to some momentum performance, which made a lot of profits. Because the new shares were packaged and sold to you by the company and underwriters, they failed to pass the market test. Just like the lady who just put on makeup for the dance, you haven't seen her take off her makeup yet.

The issuance of A-share new shares has long been an examination and approval system, resulting in insufficient supply of new shares; For a long time, the pricing mechanism of IPO has been a variety of pricing systems, resulting in a low issue price. These two factors led to the phenomenon that A-shares almost broke even in the past, which formed the muscle memory of A-share retail investors. Almost anyone who pays a little attention to A shares knows that "playing new shares is bound to earn money" is an iron law. But few people delve into the institutional reasons behind it.

Now the system has changed. Both the GEM and the Science and Technology Innovation Board have explored the registration system. 2 1, 1 The economic work conference held in February also said that A should fully implement the registration system and the supply of new shares will no longer be in short supply. In September of 2 1 year, the CSRC allowed the opening of the inquiry mechanism for new shares of science and technology innovation board and growth enterprise market. The company can set its own price according to the inquiry of the organization, and the issue price will not be limited. The company must want to pay as high a price as possible, so breaking the rules has become the inevitable result of institutional changes.

Let's talk about the human nature game in IPO games first.

In fact, judging from the abandonment of offline investors, we can feel that the market has been worried about breaking, but why do Baekje Shenzhou and Hemai dare to pay such a high price? Behind it is the human nature game between market players.

In fact, in the game of IPO, except for most retail investors, they are all smart people. It is difficult for smart people to get into each other, and it is easiest to get into simple retail investors.

Companies are smart people and know how much they are worth. In most cases, IPOs want to sell at a good price. Have you noticed that although Baekje is highly priced, its founder Ou has continuously reduced its holdings of Hong Kong stocks and US stocks for a long time.

Underwriters are smart people, knowing that such a large IPO financing project can make a lot of money, they must try their best to help them.

Institutional investors are smart people. There are almost no public offerings and well-known private placements among the strategic investors in this Baekje placement, and all of them are institutions with relatively weak performance appraisal. Hemai's institutional inquiry difference 14 times. Institutions that have research strength and care about performance are not stupid.

Moreover, the above three subjects are generally closely related. How do ordinary investors know whether there is an agreement under the table?

Retail investors are miserable and lack research ability. How many people can understand Baekje's pipeline, understand the rationality of Baekje's burning money and understand Hemai's products? Most of them are due to the muscle memory that new shares will earn, and the psychology of signing cheap meat.

But retail investors are not all simple. Everyone's worries about Baekje have been obvious beforehand, and there has also been an offline abandonment. However, companies and underwriters are still very clear about the psychology of retail investors. They know that the muscle memory that retail investors will earn by playing new games has not faded, and they also know that retail investors want to take advantage and worry about losing money. They are specially equipped with a green shoe mechanism and give retail investors a peace of mind pill. But in fact, green shoes were originally designed for fear of being broken. How can ordinary investors take it as a reassurance? In fact, looking at how much higher the A-share issue price is than that of Hong Kong stocks, the psychology of cutting leeks is quite clear.

Because I know a little about pharmaceutical stocks, three relatives and friends asked me if I wanted to participate in the IPO of Baekje Shenzhou, and I advised them not to participate. Unfortunately, only 1 friends listened. In order to balance the market point of view and let more ordinary investors see a more balanced point of view, I wrote one or two articles to analyze Baekje based on public information, pointing out that Baekje's governance system similar to that of large American companies does not conform to the lean culture of China startups. A group of foreign executives played patriotic cards with high profile, but reacted too little to the differentiation of the company's products and the rationality of huge R&D investment, and the investment value was worrying. They were suspected of telling stories and were quickly deleted by some platforms.

Muscle memory is strong, greed, lack of research ability, and even network information has been manipulated. In this IPO game, ordinary retail investors are really too weak. Through the K-line chart, you can feel the smug smiles of the company and underwriters.

Fortunately, the abandonment of offline investment and the breaking of IPO still show that retail investors can be educated and their muscle memory will eventually fade away. It's just that the price may be a little high for some people.

A series of events and phenomena surrounding Baekje and Hemai IPO are not only the progress of the system, but also the calculation of human nature.