“Before the mixture comes out soon,†the mantra of this remark is now perfectly suitable for Shuangliang Energy (600481, closing price of $11.18). The resale period of the company's convertible bonds has ended, causing the market to lose sight of the fact that the amount of sale back in 5 days was as high as 668 million yuan. This figure was equivalent to 90.11% of the total capital raised at the time. Such a high proportion may have been. It set a new record for the sale of convertible bonds in history. It may be difficult to continue the implementation of the motion to lower the stock price.
A total of 6.487 million copies of Shuangliang’s energy saving notice were sold back today. After a five-day return sale, the reporting period for Shuangliang Convertible Bonds Repurchase ended on September 20. The eye-catching glasses is that this time, a total of 6.487 million copies were sold back, and the corresponding amount of resales was as high as 668 million yuan. This figure is equivalent to 90.11% of the total fund-raising amount initially. Such a high ratio may be Shuangliang’s energy-saving. Unexpected when issuing convertible bonds a year ago. The company said that the sale of funds will be accounted for today.
According to statistics, the issuance date of the Shuangliang convertible bonds was May 2010, when a total of 7.2 million copies were issued, each with a face value of 100 yuan, and the term was 5 years. A total of 720 million yuan was raised. Production of 9 sets of LT-MED/12,000 tons of low-temperature multi-effect seawater desalination equipment manufacturing projects and 240,000 tons/year of EPS projects.
Fortunately, since April of this year, the market has fallen into a bear market, and Shuangliang's energy-saving stock price has fallen steadily. On July 22, it fell below 70% of the transfer price (14.567 yuan per share). The situation has continued to the present.
According to the Conditional Repurchase Terms, if the company's stock closing price is lower than 70% of the current conversion price for 30 consecutive trading days, Shuangliang Convertible Bond Holder shall have the right to hold all or part of the convertible debt held by it. 103% of face value (including interest for the current period) was sold back to the listed company. As a result, there was a scenario in which the amount of return sale was as high as 668 million yuan.
There has been no incentive to transfer the stock price up to a 90.11% return, and Shuangliang Convertible Bonds are “not to be seenâ€. This is reflected in the growing concern among investors and issuers in the convertible bond market. contradiction.
"Daily Economic News" reporter found that on August 29, Sinopec (600028, the closing price of 7.02 yuan) "wonderful idea", in March of only 23 billion yuan convertible bonds have not yet converted, but also Announcing that the total amount of convertible bonds to be issued with a total amount of no more than 30 billion yuan will completely break through the market's psychological defenses and also make investors angry. In the difficult to assess the market outlook, the market only responded with a sharp drop. As of yesterday, there were 8 convertible bonds in the 19 convertible bond markets, which fell to the face value, accounting for 42.1% of the total. The situation that the convertible bond market has fallen below the face value in a large area is unprecedented.
An analyst who has been tracking convertible bonds for a long time told Daily Economic News that the market’s performance is a game between investors and issuers. Looking back at the previous 2004 and 2005, the overall terms of protection of convertible bonds are much better than they are now. The current plunge can be seen as a repair process for the market.
In fact, in the game of the market, investors have already had an early victory. According to the Shuangliang Energy Savings Bulletin, the company issued a motion on the cut of the stock price on September 6. It is hoped that the conversion price will be reduced to 160% of the average price of the 20th day before the shareholders’ meeting and the average price of the previous day. However, this condition was seriously lower than market expectations, causing Shuangliang convertible bond prices to fall again and fall below the return sale price. On September 10, forced by resale pressure, Shuangliang Energy had to announce once again that the conversion price would be reduced to 120% of the top, instead of 160%, and said that the major shareholders would vote in favor of the next amendment.
The above analysts said that the success of this war means that the market has forged a substantial victory, but also reflects the issuer’s concerns about the huge return sale. This is a good demonstration case, but with huge sales back, it is a foregone conclusion. Shuangliang Energy also lost the incentive to continue to insist on the conversion to the stock price. The results of the shareholders meeting on September 29 may not be optimistic.
A total of 6.487 million copies of Shuangliang’s energy saving notice were sold back today. After a five-day return sale, the reporting period for Shuangliang Convertible Bonds Repurchase ended on September 20. The eye-catching glasses is that this time, a total of 6.487 million copies were sold back, and the corresponding amount of resales was as high as 668 million yuan. This figure is equivalent to 90.11% of the total fund-raising amount initially. Such a high ratio may be Shuangliang’s energy-saving. Unexpected when issuing convertible bonds a year ago. The company said that the sale of funds will be accounted for today.
According to statistics, the issuance date of the Shuangliang convertible bonds was May 2010, when a total of 7.2 million copies were issued, each with a face value of 100 yuan, and the term was 5 years. A total of 720 million yuan was raised. Production of 9 sets of LT-MED/12,000 tons of low-temperature multi-effect seawater desalination equipment manufacturing projects and 240,000 tons/year of EPS projects.
Fortunately, since April of this year, the market has fallen into a bear market, and Shuangliang's energy-saving stock price has fallen steadily. On July 22, it fell below 70% of the transfer price (14.567 yuan per share). The situation has continued to the present.
According to the Conditional Repurchase Terms, if the company's stock closing price is lower than 70% of the current conversion price for 30 consecutive trading days, Shuangliang Convertible Bond Holder shall have the right to hold all or part of the convertible debt held by it. 103% of face value (including interest for the current period) was sold back to the listed company. As a result, there was a scenario in which the amount of return sale was as high as 668 million yuan.
There has been no incentive to transfer the stock price up to a 90.11% return, and Shuangliang Convertible Bonds are “not to be seenâ€. This is reflected in the growing concern among investors and issuers in the convertible bond market. contradiction.
"Daily Economic News" reporter found that on August 29, Sinopec (600028, the closing price of 7.02 yuan) "wonderful idea", in March of only 23 billion yuan convertible bonds have not yet converted, but also Announcing that the total amount of convertible bonds to be issued with a total amount of no more than 30 billion yuan will completely break through the market's psychological defenses and also make investors angry. In the difficult to assess the market outlook, the market only responded with a sharp drop. As of yesterday, there were 8 convertible bonds in the 19 convertible bond markets, which fell to the face value, accounting for 42.1% of the total. The situation that the convertible bond market has fallen below the face value in a large area is unprecedented.
An analyst who has been tracking convertible bonds for a long time told Daily Economic News that the market’s performance is a game between investors and issuers. Looking back at the previous 2004 and 2005, the overall terms of protection of convertible bonds are much better than they are now. The current plunge can be seen as a repair process for the market.
In fact, in the game of the market, investors have already had an early victory. According to the Shuangliang Energy Savings Bulletin, the company issued a motion on the cut of the stock price on September 6. It is hoped that the conversion price will be reduced to 160% of the average price of the 20th day before the shareholders’ meeting and the average price of the previous day. However, this condition was seriously lower than market expectations, causing Shuangliang convertible bond prices to fall again and fall below the return sale price. On September 10, forced by resale pressure, Shuangliang Energy had to announce once again that the conversion price would be reduced to 120% of the top, instead of 160%, and said that the major shareholders would vote in favor of the next amendment.
The above analysts said that the success of this war means that the market has forged a substantial victory, but also reflects the issuer’s concerns about the huge return sale. This is a good demonstration case, but with huge sales back, it is a foregone conclusion. Shuangliang Energy also lost the incentive to continue to insist on the conversion to the stock price. The results of the shareholders meeting on September 29 may not be optimistic.
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