On Jul 22, 2020, Shares of Qi An Xin Technology jumped 138 percent in its first trading day on the Shanghai STAR Market.
The cybersecurity firm's stock price closed at 133.55 yuan (US$19.07), giving the company a market capitalization of 90.8 billion yuan. This makes it the seventh most valuable company on the STAR Market, although the company, founded in 2014, has yet to turn profitable.
Earlier, Qi An Xin Technology Group said its IPO was 2,447 times oversubscribed. Since 2019 to date, A-shares IPOs achieved median oversubscription of 2,373 times and the highest at 8,375 times. For subsequent 30-day trading the performances can be obtained from our China IPO Weekly.
The board’s listing standards support firms, including Qi An Xin, with core technologies and a long technology transformation cycle to go public and further expand with the help of the capital market,” Qi Xiangdong, chairman of Qi An Xin, said in a statement.
The company's IPO funds will be invested in cybersecurity and defense systems, Qi added.
Qi An Xin Technology Group Inc is a China-based company engaged in the provision of enterprise-level network security products and services. The Company's products include infrastructure security products, next-generation information technology (IT) infrastructure protection products, and big data intelligent security detection and management products. It also provides security consulting and planning, security analysis and response, security assessment and testing, and security intelligence and operation services, as well as is engaged in third-party hardware product sales and system integration. The Company operates its businesses in domestic and overseas markets.
In financial year 2019, Qi An Xin Technology Group garnered a total revenue of RMB 3.15 bln, up 74% YoY. In terms of net income, it achieved RMB -553 mln, up 42% YoY. Accordingly, return on equity (ROE) and return on asset (ROA) stood at -10.62% and -7.94% respectively, earning per share (EPS) of -0.9 RMB.
China’s cybersecurity spending accounts for 1.84 percent of total IT spending, lagging behind figures of developed countries such as 4.78 percent in the US, according to researcher IDC.
Source: Oceanpine Capital
