God of Rebirth Trader

Who would have thought that Air China’s IPO would be so difficult.

The summer of 2006 was very hot.

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

Looking around, the economic situation is excellent.

The stock market is not bad either. It started from less than 1,000 points and slowly rose to 1,700 points. However, millions of investors are still at a loss. There is a long-suppressed atmosphere in the air. It feels like a storm is coming at any time, but it just doesn't come.

The China Securities Regulatory Commission has strictly investigated stock price manipulation, and bankers have been arrested one after another. According to the casino theory and the theory of tearing it down and starting over, there is still a huge market, and no one dares to say that a bull market is imminent.

After all, since the establishment of the Huaxia Stock Market, the highest level has only been 2,245 points.

It is still the result of the promotion of many favorable policies.

1700 points is indeed very high.

Even at China International Capital Corporation (CICC), which sticks to its word, the institutional sales managers unanimously agree with the outside world: "The stock market has risen greatly and has left the value range. It is recommended to sell."

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

Air China is the only airline in China that has the "Five-Star Red Flag" printed on its aircraft.

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

It can be said to be of great importance.

Looking at the advertisements shot by Air China and the crisp uniforms of the crew members, most people would think that this is a very high-end company.

In fact, this is not the case. This company's throat is often tightly strangled by US dollars and oil, making it unable to breathe.

The 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 Air China's profits.

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

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

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

How can Air China resist dollar fluctuations?

The upward trend in oil prices is so obvious. How can Air China hedge against it? If even a small accident occurs, where will Air China's stock price go?

Regarding these buyer issues, the leaders of Air China and AVIC Group appear very calm and confident.

In the whole of China, as long as there is a certain level of travel, which one does not fly on Air China's special plane? Can China Eastern Airlines, China Southern Airlines, and Hainan Airlines be compared?

Moreover, in the history of China, there has never been a situation where the size of an IPO has shrunk. What are you afraid of? Once Air China’s new shares are issued, isn’t it just a dozen or so daily limit?

For the underwriter, CICC, that is even less of a problem.

As the No. 1 local investment bank in China, CICC’s investment banking brand is not something to be boasted about.

Not only did he work in the most expensive building in China, he also had a special fleet to take employees home in the middle of the night. He sold the most difficult-to-sell bonds in China and underwrote the most unlikely stocks to be issued.

When a central enterprise like Air China goes public, CICC will be the one to protect it. It will never fail!

In their eyes, selling an IPO is easy.

All you need to do is arrange a few researchers, memorize the tender documents, wear suits and ties, and make an appointment for the road show. A large team of people rush into the lobby of the seller's house. The principal representative of the issuer Kang makes a speech, and the deputy representative tactfully agrees and nods in agreement.

, and then collectively gave a friendly smile to the seller's several young researchers who had just graduated, and asked the other side's fellow debaters to ask questions...

Isn't this easy?

However, this IPO was unexpectedly difficult, and the process was full of twists and turns, making all the impossible possible.

On July 30, 2006, Air China issued a prospectus and prepared to issue 2.7 billion new shares to mainland investors.

Regarding the price, CICC helped the issuer get a feel for it in private, and the result was very good.

not good.

So they thought carefully and finally settled on a low price of 2.75-2.95 yuan, which was not optimistic.

But even so, the overall fundraising target is still as high as 8 billion yuan.

Among them, 350 million shares were strategically placed, and the remaining shares were divided half offline and online, totaling 1.175 billion shares each.

These are all standard actions for large IPOs, nothing new.

But what’s new is that Air China’s offline sales are extremely indifferent.

Of more than 200 institutions that met the quotation qualifications, only 36 submitted the "Subscription Form" that day.

And most of these 36 companies were forced to do so by the institutional salespeople of CICC.

Just like this, when the quotation was submitted, 9 companies deliberately wrote the wrong price or other information, causing the quotation to be invalid.

Think about it, an IPO that allows a financial investment institution that is extremely serious about numbers to deliberately invalidate its quotations would be an IPO.

Almost all public funds believe that Air China's risks are too great and it is a clear 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?

According to calculations by CICC’s market investment department staff, the total subscription volume was far lower than expected, only 28.65% of the planned total issuance amount.

With this release, it seems that the defeat is certain.

If even large state-owned enterprises like Air China fail to issue A-shares, then the fate of ICBC, Datang Power Generation... and other state-owned enterprises that are on the list of CICC waiting to be listed can be imagined.

He has no hematopoietic ability at all.

It is entirely possible to reach 1700 points and then return to 998 points.

Faced with the list of quotations, CICC thought hard about how to convince these bidders to buy more. They made many phone calls, contacted all leaders, and conducted all research to the utmost depth.

In the end, only Wang Guiwen of Harvest Fund invested 336 million yuan and bought 120 million shares.

Although it only accounts for 1.07% of the total share capital, it is already a great honor to be able to buy so much, so don’t force it on others.

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

The whole process went on stumblingly. Air China's issue price was continuously lowered, and was finally set at 2.8 yuan. With the addition of online investor subscriptions, the total amount raised was less than 60% of the original plan.

After repeated communication with the exchange, the directors of Air China got a very auspicious stock code:.

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

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

Air China's major shareholders made a prompt decision and decided to use nearly 2 billion IPO issuance reserves in the secondary market to stabilize the issue price of 2.8 yuan. Whoever dares to sell, Air China's major shareholders will dare to take over.

This is the first time in the history of Huaxia IPO that a major shareholder has committed to increase its 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 crazily again, and Air China's stock price continued to fall.

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

At this time, some sporadic buying orders suddenly appeared on the market, ranging from a few hundred lots to dozens to a dozen...

"Chairman, it seems that some retail investors have come in to buy the bottom!"

The trader discovered this situation immediately and reported it immediately.

"Okay! This shows that there are still investors in the market who recognize us. Are you confident that we can hold this price?" The leaders of AVIC Group suddenly felt full of strength.

If the stock price continues to fall, they will be really embarrassed!

No

Not only has shareholders' equity shrunk, it has also dealt a heavy blow to the company's credibility.

"It shouldn't be a big problem."

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

As of the afternoon close, Air China stood firmly back at 2.8 yuan.

What a long day!

Wait until night.

Night falls.

Most people are already asleep.

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

Buzz~

Buzz buzz~

.....

Chen Jie had been busy with the company's affairs all day, consuming a lot of brain cells. He finally fell asleep and was woken up by the annoying vibrating sound of his mobile phone on the bedside table.

He glanced at the name on the caller ID in confusion, reluctantly picked up the phone, and complained:

"Guobin, what's going on? Why are you calling me so late?"