Enigmatic IPO: Xinxing Tools' Mysterious Journey
An enterprise with a pre-IPO dividend of over 3.6 billion yuan, with an IPO fundraising goal of 5.6 billion yuan - what does it mean?
In recent days, Zhejiang Xinxing Tools Co., Ltd. (hereinafter referred to as "Xinxing Tools") disclosed its first-round audit inquiry response, indicating that the company plans to list on the Shanghai Stock Exchange's main board, with China Securities Company Limited serving as the sponsor. This time, the company will issue 25 million shares, accounting for 25% of the total share capital after issuance. The funds raised will be used to build a precision CNC mold digital factory project.
However, before the IPO, Xinxing Tools had accumulated dividends of over 3.625 billion yuan in the past three years, accounting for about 65% of the current 5.6 billion yuan fundraising goal.
The Shanghai Stock Exchange has paid close attention to Xinxing Tools' massive dividend payouts and asked questions about its historical development, actual control person, and company governance, as well as its declining profit margins.
A History of Holding Back
In 1992, a company called "Sixth Street Bridge Tool Factory" was established in Zhoushan County, Zhejiang Province. The registered capital was only 4.14 million yuan, but the shareholders were just two people, Juhuolin and Xu Xiaoguang, who each held a 50% stake.
In 1995, the company changed its name to Xinxing Tools Co., Ltd. and continued to focus on precision CNC mold production.
A Company with High Concentration of Actual Control Rights
The actual control person, Juhuolin, has held a significant stake in the company since its establishment and has played a crucial role in its development.
Massive Dividend Payouts Before the IPO
In recent years, some companies that have performed massive dividend payouts before their IPOs have terminated their IPO plans. Xinxing Tools also faces similar issues.
From 2020 to 2022, Xinxing Tools' cash dividends totaled over 3.625 billion yuan, accounting for nearly 65% of the current fundraising goal.
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