The recent two major travel platforms have been heated around the market due to market share and financing scale. According to the "Shanghai Securities News" news, as a local travel platform Didi travel in the new round of financing, the valuation will exceed 25 billion US dollars. The valuation of primary market assets is too high and has become an open secret in the industry. And whether a startup that is chased by capital can bring benefits to investment institutions, but it still has to ask a question mark.
On the cash flow path, the startup company publicly issues shares in the securities market through the IPO, and the investment institution sells the shares held after the lock-up period to get a return. This way of realizing is undoubtedly recognized as the best way to exit by the investment circle. However, is the IPO really a balm of money to make money in the investment circle? And can a company with a high valuation of shoulders really bring enough income to investors through IPO?
One example is a medical high-tech company that has recently attracted attention from the capital market. In December 2015, a company with an annual profit of 24.56 million entered the IPO GEM queue. In the last round of financing before the IPO, its valuation was as high as 20 billion, and the price-earnings ratio was 814 times. According to Wind data, on December 31, 2015, the average price-earnings ratio of the GEM was less than 70 times.
This company is known as the "domestic gene sequencing leader", "Tencent in the gene sequencing community" of the Huada gene. Market participants estimate that the company's IPO issue price has caused its investment institution's single largest floating loss to exceed 400 million yuan.
Investment institutions have an average floating loss of nearly 12%
According to the prospectus, the number of shares issued by Huada Gene for the first time is not less than 40 million shares, and plans to raise funds of 1.732 billion yuan. The calculation price is 43.3 yuan/share. The IPO issue price led to an average loss of 11.83% of the investment institutions of Huada Gene in the primary market, of which 8 float losses reached 22.23%, and the highest floating loss of a single investment institution exceeded 400 million yuan.
An equity investment fund executive told People's Finance that the price-earnings ratio of Huada Gene IPO reached 814 times. The only reason that can be accepted by investors is the explosive growth of enterprises. However, People's Finance flipped through the prospectus. The net profit of Huada Gene in 2012, 2013 and 2014 was 16.92 million yuan, 63.13 million yuan and 24.56 million yuan respectively, which obviously did not meet the description of "explosive growth".
A senior professional in the investment community told People's Finance that the IPO issue price has led to a huge loss of investment institutions, which is relatively rare in the industry and the company itself. On the one hand, many institutions that previously participated in the investment of Huada Gene are blindly optimistic about the growth rate and competitiveness of Huada Gene; on the other hand, the primary market has too much capital and fierce competition among institutions, leading to the estimation of enterprises in the primary and secondary markets. The value appears upside down.
Business development cannot meet investor estimates
In recent years, the field of gene sequencing is a must for domestic and foreign PE/VC in the field of medical investment.
A PE executive focused on medical investment introduced to People's Finance that genetic sequencing has a complete global industrial chain. The core link is the supply of genetic sequencing equipment upstream of the industrial chain, which is partly monopolized by US companies represented by Illumina and LifeTechnologies. According to reports, in 2010, Huada Gene purchased 128 Illumina sequencers from a CDB loan of 600 million yuan. The source believes that Huada Gene itself is not competitive in the core of the gene sequencing industry chain.
Our natural sweetener is extracting from natural plant. Like inulin powder, there are jerusalem artichoke and chicory sources. Monk fruit extract has sweetness of hundreds times than that of sugar. As natural food ingredient supplier, we also supply bulk sweetener like fructo-oligosaccharide, xylooligosaccharide, xylitol, sorbitol, Stachyose, D-Allose, erythritol, stevia extract powder which has very similar taste with sugar, we also accept blend customization of sweetener, please feel free to reach us for more if any interests!
Natural Sweentener,Inulin Powder,Bulk Sweetener,Monk Fruit Extract
YT(Xi'an) Biochem Co., Ltd. , https://www.ytnutra.com