In order to allocate more new shares, many leading institutions have adjusted their new share subscription strategies.
Recently, MetaX announced the results of its new share subscription. The results show that A-class investors, represented by public offerings, social security funds, and insurance funds, have significantly increased their subscription volume for tier one new shares, with tier one subscription volume accounting for over 70%. The situation for Moore Threads is similar. However, in the previous subscription of new shares in the sci-tech innovation growth sector, the subscription volume for tier one was only around 30%.
Industry insiders say that the sci-tech innovation growth sector has reformed the new share subscription system, opting for tier one subscriptions. Although the lock-up period for new shares is longer, the allocation rate for new shares is the highest, allowing for more new shares to be allocated.
<h2>Over 70% Subscription Volume Willing to Lock for 9 Months</h2>
The results from MetaX show that among the offline subscription quantities, the subscription volume for tier one A-class investors accounts for 73.39% of the effective offline subscription quantity, while the subscription volume for tier two A-class investors accounts for 7.69%, and for tier three A-class investors, it accounts for 4.75%.
It is reported that A-class investors include public offerings, social security funds, pension funds, annuity funds, bank wealth management products, insurance funds, insurance asset management products, and qualified foreign investor funds. B-class investors are other investors outside of the above categories, such as private equity, brokerage asset management, and brokerage proprietary trading.
According to the subscription rules, this offline issuance part adopts a contractual lock-up method, and the issuer and the lead underwriter have negotiated to set the lock-up tiers for this issuance into three tiers. Tier one: Offline investors must commit that 65% of the allocated shares will have a lock-up period of 9 months from the date of the issuer's initial public offering and listing. Tier two: The corresponding lock-up period during the bidding is 6 months, with a lock-up ratio of 40%. Tier three: The corresponding lock-up period during the bidding is 6 months, with a lock-up ratio of 15%. A-class investors can choose any tier for subscription, while B-class investors can only subscribe to tier three. A-class investors who choose tier one for subscription are referred to as A1 investors; those who choose tier two are referred to as A2 investors.
According to the results from MetaX, this means that 73.39% of the subscription volume chose tier one, preferring a longer lock-up period and a higher lock-up ratio for the allocated new shares.
A similar situation also occurred in the new share subscription for Moore Threads. Data from Moore Threads shows that 74.38% of the subscription volume chose tier one, 8.86% chose tier two, and 5.64% chose tier three.
<h2>Different from Previous Strategies</h2>
Both Moore Threads and MetaX are new shares in the sci-tech innovation board growth sector, and prior to this, the subscription strategies for new shares in the sci-tech innovation board growth sector were not like this.
In the subscription for He Yuan Bio, the subscription volume for tier one accounted for only 39.27%, while tier two accounted for 35.99%, and tier three accounted for 6.18%. In the subscription for Bibet, the proportion for tier one was 27.2%, for tier two was 39.89%, and for tier three was 11.69%. In the subscription for Xi'an Yicai, the proportion for tier one was 47.34%, for tier two was 32%, and for tier three was 6.15%
For these new stocks, public offerings and other Class A institutional investors chose to subscribe at levels one and two with a subscription volume of about 30%, which is relatively balanced, contrasting sharply with the current situation of Moore Threads and MetaX. Clearly, when subscribing to Moore Threads and MetaX, institutions adjusted their new share subscription strategies, significantly reducing subscriptions at level two while greatly increasing subscriptions at level one, where the subscription volume ratio exceeded 70%.
<h2>More New Shares Can Be Allocated</h2>
According to reports, one reason why Class A investors have made such adjustments to their new share subscription strategies may be to allocate more new shares.
On October 28 of this year, the first batch of newly registered companies in the Sci-Tech Innovation Board's growth tier was listed. The growth tier has reformed the issuance and underwriting system of the Sci-Tech Innovation Board. It adjusted the offline lock-up arrangements for unprofitable companies and increased the allocation ratio for investors with a long-term holding intention. The offline lock-up ratio arrangements for unprofitable companies were further refined according to different issuance scales. At the same time, it clarified that unprofitable companies can adopt agreed lock-up methods to set different lock-up ratios or periods for offline issued securities.
The overall principle is that investors with longer lock-up periods and higher lock-up ratios will have a higher allocation ratio for new shares. Taking MetaX as an example, the allocation rate for investors choosing level one is 0.05%, for level two it is 0.017%, and for level three it is 0.0056%. The difference between the highest and lowest is nearly 10 times.
Moore Threads is similar in this regard. The allocation rate for level one is 0.07%, for level two it is 0.0234%, and for level three it is 0.0078%. There is also a nearly 10-fold difference between the highest and lowest.
&#34;In this situation, investors are more inclined to choose level one to allocate more new shares, as there is a significant difference in allocation between different levels,&#34; an industry insider told reporters.
Some also pointed out that the growth tier of the Sci-Tech Innovation Board has not been established for long, and the reform of the issuance and underwriting system is substantial, so investors may still be adapting to the adjustments.
Huazhang Securities stated that due to the requirement that the final lock-up ratio for new shares in the growth tier must not be lower than a certain value (for example, 40%), if this requirement is not met, the lead underwriter will proportionally adjust the lock-up ratios for the three levels of bids until the requirement is satisfied. In this context, if too many Class A investors choose level three, they may end up with a low winning rate while passively increasing the lock-up ratio, resulting in very low cost-effectiveness. Therefore, most Class A investors will not choose level three.
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Many leading institutions have adjusted their new share subscription strategies to obtain more new shares. The results of the new share subscriptions for MetaX and Moore Threads show that Class A investors have significantly increased their subscription volume for Tier 1, with Tier 1 subscription volume accounting for over 70%. The Sci-Tech Innovation Growth sector has a longer lock-up period for new shares subscribed at Tier 1 under the new subscription system reform, but the allocation rate is the highest. Data from MetaX and Moore Threads indicate that the proportion of Class A investors choosing Tier 1 is 73.39% and 74.38%, respectively

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