Jiangsu Wodede Agricultural Machinery Co., Ltd. Abandons IPO, 40 Billion Cash Dividend Before Listing
Jiangsu Wodede Agricultural Machinery Co., Ltd. (hereinafter referred to as "Wodede") has abandoned its initial public offering (IPO) just a step away from listing, with a cash dividend of 40 billion yuan before the IPO.
On December 25th, according to the website of the Shanghai Stock Exchange, Wodede had already completed the registration process and submitted its IPO application to the China Securities Regulatory Commission. However, on the same day, the company's designated sponsor, Haitong Securities (600837), submitted a request to withdraw the registration application, stating that it would not proceed with the IPO. The China Securities Regulatory Commission subsequently decided to terminate Wodede's listing process.
Wodede's IPO journey has been ongoing for nearly three years since it submitted its IPO application to the Shanghai Stock Exchange in December 2020.
So, why did Wodede choose to abandon its IPO at this critical moment? Is there any connection between the company's massive cash dividend and its decision to cancel its IPO? Or was there something discovered during the inspection process that led to this outcome?
RMB 3 Billion Additional Investment
According to the data, Wodede was established in 2003 and is a leading modern agricultural machinery manufacturing company in China. The company's main business scope includes research and development, production, and sales of agricultural machinery products.
As of June 15th, 2021, Wodede had disclosed that it would cancel the project "Horgos Wodede High-tech Cotton Gin Construction Project" due to changes in the company's investment plans. The inspection results also showed that the company had not implemented the project as planned.
Wodede's actual controller, Wang Weiyao and Zhang Mei, held a total of 73.62% stake in the company through Danyang City Wode Real Estate Development Co., Ltd.
The actual controller would receive approximately RMB 30 billion (before taxes) if the IPO were to proceed.