Summary of Key Points
The core features of the new share issuance by Yushu Technology are as follows:
- The winning rate for individual retail investors participating in the online subscription process is extremely low (26 times lower than that of Changxin Technology, which had the highest winning rate this year). However, the winning rate for institutional investors through the offline subscription process ranked sixth among this year's new share offerings.
- A large portion of the issued shares were allocated to institutions (70%), with retail investors receiving only 30%.
- To win one share, investors need to pay 75,400 yuan, and the payment deadline is August 12th.
- Among institutional investors, "mainstream" entities such as public funds and social security funds (Category A) acquired the majority of the shares, while quantitative investment firms (Category B) also participated.
1. Online Subscription: Winning a Share is More Difficult than Winning the Lottery, and It Costs Over 75,000 Yuan
It is very challenging for ordinary individuals to win a share of Yushu Technology through the online subscription process:
- The online winning rate is only 0.018%, which means that out of every 5,525 subscription codes, only one will be successful (similar to buying 5,525 lottery tickets and only winning once).
- Compared to Changxin Technology, which had the highest online winning rate this year at 0.47%, Yushu Technology's rate is just 3.8%—almost one in a hundred, or even less than that.
- Even if you win, you must prepare 75,400 yuan. The issue price per share is 150.8 yuan, and winning one share requires purchasing 500 shares, totaling 75,400 yuan. Retail investors need to ensure they have sufficient funds in their accounts by August 12th; otherwise, their subscription will be invalid.
2. Offline Subscription: Institutions Have a Better Chance of Winning Shares, with the Sixth-Highest Rate This Year
Institutional investors have a much higher chance of winning shares through the offline process:
- The offline allocation rate is 0.033%, nearly double that of the online process. Among the 46 new shares that offered offline subscriptions this year, Yushu Technology ranked sixth, making it relatively easy for institutions to obtain shares.
- Compared to Changxin Technology's offline allocation rate of 0.175%, Yushu Technology's rate is 19%—although still lower than many other new shares. However, considering that the offline winning rates for most new shares are even lower, this is a relatively good outcome for Yushu Technology.
- The majority of the shares allocated to institutions (20.38 million shares) do not have a lock-up period and can be sold immediately after the stock goes public; only a small portion (2.26 million shares) has a lock-up period.
3. To Whom the Shares Are Allocated: Institutions Receive the Majority, with Retail Investors Getting Only 30%
Yushu Technology allocated the majority of its shares to institutions, leaving retail investors with a much smaller share:
- After deducting strategic allocations (shares reserved for specific partners), institutional investors received 70% of the shares, while retail investors got only 30%.
- This is in contrast to Changxin Technology, where retail investors received 63.93% and institutions 36%. Among this year's 46 new shares, 25 had a similar distribution, with institutions getting the majority; 19 shares followed the pattern of Changxin Technology, where retail investors received a larger share (for example, Hikvision's shares were allocated 76.92% to retail investors).
- The reason institutions receive a larger portion may be that the company prefers professional investors to hold its shares to stabilize the stock price or because these institutions have a higher level of confidence in the company.
4. Payment Details: Funds Must Be Available by August 12th, with Different Deadlines for Online and Offline Subscriptions
Both retail and institutional investors must make their payments by August 12th; otherwise, their subscription will be invalid:
- Retail Investors (Online): You must have 75,400 yuan in your account by the end of August 12th. Each winning code allows you to purchase only 500 shares.
- Institutional Investors (Offline): The payment must be received by 4 p.m. on August 12th. If you win multiple shares on the same day, you need to make separate payments for each share.
5. Which Institutions Received Shares: Public Funds and Social Security Funds Are the Main Players, with Quantitative Investment Firms Also Participating
Institutions that received shares through the offline process can be divided into two categories:
- Category A (Mainstream Entities): These include public funds (such as Boshi, Huaxia, Huitianfu), social security funds, pension funds, and insurance companies (e.g., Everbright Yongming). They acquired 19.33 million shares, accounting for about 85% of the total offline shares, making them the dominant force.
- Category B (Other Institutions): This includes securities firms (such as Guojin, Dongfang Fortune) and certain funds (e.g., Ruiyuan), as well as quantitative investment firms (such as Jiukun, Huanfang, and Mingshi). They acquired 3.31 million shares, accounting for about 15% of the total offline shares.
The fact that these institutions participated indicates their recognition of Yushu Technology's value and their willingness to invest in its stock.
Conclusion
Yushu Technology's new share issuance is a typical example of an "institution-friendly" approach: institutions have a higher chance of winning shares and receive a larger portion. It is very difficult for retail investors to win, and even if they do, it comes at a significant cost. This distribution reflects the company's preference for institutional investors, making it more challenging for retail investors to participate in the subscription process. If you are a retail investor, you should be prepared to possibly not succeed; however, if you are an institution, this could be a good investment opportunity.