With a winning rate of one in ten thousand and frozen funds exceeding 137.7 billion yuan, Wanda Bearing, dubbed the "first stock of the 920th North Exchange," has been highly sought after by capital in the new share subscription phase.

After receiving approval early this month, Wanda Bearing quickly advanced its issuance and carried out the new share subscription last week. The issuance results showed that the online subscription for the stock was allocated to about 26,800 households, with 4.75 million shares allocated online, and an online allocation ratio of 0.07%. At the same time, seven strategic investors including Shanghai Kuantuo Asset Management Co., Ltd., were allocated a total of 1 million shares. The issue price of Wanda Bearing is 20.74 yuan per share, with an issue price-to-earnings ratio of 14 times. Based on its effective subscription quantity of 6.642 billion shares, the total frozen funds for the stock online are about 137.7 billion yuan.

Wanda Bearing will be listed on the North Exchange with the code 920002, and the industry expects the stock to be listed in the near future. Whether it can lead the 920th North Exchange trend and drive the recovery of the secondary market of the North Exchange is also highly anticipated.

On May 23, against the backdrop of the weakening of the Shanghai and Shenzhen markets, the North Exchange once again showed a "seesaw" effect, with the North Certificate 50 once standing above 800 points, and Aweit and Kaihua Materials achieving a 30CM daily limit. The North Certificate 50's total transaction volume for the day reached 8.24 billion yuan, setting a new high in nearly two months.

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"This is a rehearsal for the 920th North Exchange trend and a test for the reversal trend of the North Exchange at the end of last year," said Zhou Yunnan, founder of Beijing Nanshan Investment, to the reporter.

Although the market eventually became a "one-day tour," the North Certificate 50 fell below 800 points the next day, with the latest closing at 784.07 points. However, as Wanda Bearing's listing approaches, whether the North Exchange trend can heat up again has attracted market attention.

Wanda Bearing's online winning rate is 0.07%

After obtaining approval on May 10, Wanda Bearing quickly entered the issuance phase and carried out the new share subscription on May 21, planning to issue 5 million shares publicly, and not exceeding 5.75 million shares after exercising the over-allotment option.

The company's issuance results disclosed on May 24 showed that in terms of online allocation, Wanda Bearing's online allocated households were 26,800, with 4.75 million shares allocated online, an online allocated amount of 985.15 million yuan, and an online allocation ratio of 0.07%.

The market estimates that based on its effective subscription quantity of 6.642 billion shares, the total frozen funds for the stock online are 137.755 billion yuan.In terms of strategic allocation, Wanda Bearing has attracted a total of 7 strategic investors, including Shanghai Kuantou Asset Management Co., Ltd. (Kuantou Uranus No. 23 Private Securities Investment Fund), with a combined subscription of 1 million shares and a total strategic allocation fundraising amount of 20.74 million yuan.

Compared to Wuxi Dingbang, which went public at the beginning of April, Wanda Bearing has a lower subscription rate. Wuxi Dingbang issued 25 million shares, with 59,500 online subscribers receiving an allocation, and the online allocation ratio was 0.08%.

Zhou Yunnan believes that there are three main reasons why Wanda Bearing's new share offering has been warmly embraced by capital: First, its "first stock of the 920th North Exchange" halo has attracted investor attention and capital favor; second, the stock is the first new share on the North Exchange in nearly two months; third, investors have more confidence in its performance on the first day of listing and the new share offering profit effect.

On January 19th of this year, Wanda Bearing passed the review, and on May 10th, it received the approval document. The latest prospectus shows that Wanda Bearing plans to invest 103.7 million yuan in the raised funds for two projects: upgrading the capacity of bearings for industrial vehicles and the research and industrialization of special bearings for intelligent equipment.

In terms of performance, the first quarter report for 2024 shows that Wanda Bearing achieved a revenue of 85.539 million yuan in the first three months of this year, a year-on-year decrease of 0.55%; the net profit attributable to the parent company was 14.259 million yuan, a year-on-year increase of 31.52%.

Is the 920 market expected?

In late April of this year, the North Exchange launched and enabled the 920 code number function. The official website of the North Exchange has not yet disclosed the listing date of Wanda Bearing, and the industry expects that Wanda Bearing may land on the North Exchange in the near future.

Following the listing of Wuxi Dingbang on April 8, the North Exchange market is also expected to welcome a new share after more than a month.

Will the North Exchange, which is about to "welcome new members," be driven by this to rebound in the market?

Just last week, after the daily transaction volume continued to be below 30 billion yuan, the daily transaction volume of the North Exchange once soared to over 8 billion yuan.On May 23rd, the A-share market experienced a morning rally followed by a retreat, with the three major indices falling. The Beijing Stock Exchange (BSE) once again demonstrated the "seesaw" effect, with some individual stocks hitting a 30cm upper limit, including Aweit and Kaihua Materials, which both reached their daily limit up, and multiple stocks surged by over 20%. The BSE 50 index peaked at a rise of more than 4% during the trading session, closing up 1.68%.

As of the closing bell that day, all three major indices had declined by more than 1%, while the BSE 50 rose by 1.68%. Aweit and Kaihua Materials both hit their daily limit up, Huami New Materials increased by over 20%, and Yabu Xuan, Huitong New Materials, Rongyi Precision, and others rose by more than 10%.

The trading volume of the BSE 50 index expanded rapidly, reaching 8.24 billion yuan on May 23rd, the first time it surpassed 5 billion yuan since May and setting a new high for trading volume in nearly two months.

Looking at the overall market performance of the BSE from May 16th to 21st, the daily trading volume was below 3 billion yuan for three consecutive trading days, but it soared to 8.254 billion yuan on May 23rd, a significant increase of 167% compared to the previous day's 3.087 billion yuan.

"Although the indices retreated in the afternoon of the 23rd, this could be due to the rapid rise, with some trapped positions taking profits, which is a normal market trading behavior," analyzed Zhou Yunnan.

However, the rally did not continue. The day after the sharp increase, which was last Friday, the market experienced a full-day retreat, with the Shanghai Composite Index losing the 3100 point mark. The BSE 50 closed at 784.07 points, down 2.43%, with a total trading volume of 5.317 billion yuan for the day.

Nevertheless, overall, the BSE's weekly trading data for the previous week has shown a slight recovery compared to the previous period.