1. What is the issue price of the stock?
When a company prepares to issue shares in the market, the price set for each share is called the stock issue price.
Because listing is fundraising, it is generally necessary to first determine a total fundraising amount, that is, what project fundraising is for the company and how much money it will raise.
Then there is the stock issue price, which is the most basic and important content in determining the stock issue plan, which is related to the fundamental interests of issuers and investors and the performance of stocks after listing.
(1) If the issue price is too low,
This will be difficult to meet the issuer's financing needs, and even damage the interests of the original shareholders, which was particularly profound when Xiaomi first went public.
If the issue price is too low, investors with high valuation will face the cruel reality of losing money when they go public.
(2) If the issue price is too high.
This will increase the risk of investors, increase the risk and difficulty of underwriting institutions, curb investors' enthusiasm for subscription, and even affect the market performance after listing.
Second, the method of stock issuance pricing
At present, from the experience of stock issuance markets in various countries, the most commonly used stock issuance pricing methods are:
(1) Cumulative orders
This is a common way in the American securities market. Generally speaking, underwriters and issuers first agree on a pricing range, and then collect the demand of each price through marketing to find out. After analyzing the demand quantity, the listed underwriters and issuers determine the final issue price.
(2) Fixed price
This is the way that stock markets in Britain, Japan and Hong Kong usually adopt.
The basic practice is that the underwriter and the issuer agree on a fixed price before the public offering, and then make a public offering at this price.
(3) the combination of cumulative orders and fixed prices
It is mainly applicable to international financing. Under normal circumstances, when making international recommendation, it will be publicly issued at the main issuing place. The investor's subscription price is the upper limit of the recommended price range. After the international recommendation is completed and the final price is determined, the overcharged subscription money will be returned to the investors.
Third, how to calculate the pricing of China stock issuance?
At present, the pricing of stock issuance in China belongs to the fixed price method, that is, the lead underwriter and issuer determine the price of new shares according to the price-earnings ratio method before issuance.
P (share price) =EPS (after-tax profit per share) *PE (price-earnings ratio)
The issue price of new shares also follows this formula, so we must first determine EPS and PE.
EPS (after-tax profit per share) is an important indicator to measure the company's performance and the value of stock investment. Its formula is:
After-tax profit per share = forecast profit in the year of issuance/average number of share capital with price increase in the year of issuance = forecast profit in the year of issuance/(total share capital before issuance+number of share capital in this public offering) *( 12- issue month)/12)
PE (price-earnings ratio) is the ratio of the stock market price to the after-tax profit per share, and it is also an important factor to determine the issue price.
The determination of PE will mainly refer to the performance of listed companies in the same industry in the stock market, and then consider the development prospects of their industries, the recent supply and demand relationship in the stock market and the overall trend.
Generally speaking, companies with good business performance, good industry prospects and great development potential have more after-tax profits per share, high price-earnings ratio and high issue price, thus raising more funds; On the other hand, the issue price is low and the funds raised are small.