The initial attorney fee of Fuchuang Precision IPO, a company to be listed on the Science and Technology Innovation Board, is as high as 37.5 million yuan.

The initial attorney fee of Fuchuang Precision IPO, a company to be listed on the Science and Technology Innovation Board, is as high as 37.5 million yuan, setting a new record for A-share IPO and becoming a hot topic in the capital market after the 11th National Congress.

Generally speaking, the fees charged by lawyers in IPO companies are mostly one million yuan, and tens of millions is already a very high level. Why is the fee of Fuchuang Precision Lawyer so high? Judging from the company's prospectus, the lawyer's fee of 37.5 million yuan includes the preparation of the prospectus and the verification record.

In the industry's view, Fuchuang Precision IPO lawyer's fee is so high, which may be related to the fact that the lawyer wrote a prospectus in A shares for the first time and the price was contingent under the lack of experience. In addition, the high issuance cost of the company itself is also one of the factors that lead to high lawyer fees. Of course, even if the above reasons exist, the amount of this lawyer's fee is still very high.

The lineup of lawyers writing the prospectus is luxurious.

According to the statistics of Wind, up to now, there are 305 listed companies with * * * shares in 2022, among which 30 companies' initial attorney fees reach 6,543,800 yuan and above. Compared with the second-ranked China CNOOC's initial attorney fee of 24.35 million yuan, Fuchuang Precision's initial attorney fee of 37.5 million yuan is higher than 13 1500 yuan.

Why is Fuchuang Precision's starting lawyer's fee so high? According to the announcement, Beijing Zhonglun Law Firm (hereinafter referred to as Zhonglun Law Firm) is the lawyer of Fuchuang Precision. This lawyer's fee includes the issuer's lawyer's fee, the lawyer's fee for writing the prospectus and the verification record.

Generally speaking, the prospectus is written by the sponsor. Why should lawyers participate in the writing of Fuchuang Precision Prospectus, and how much role does it play in the writing of Prospectus?

According to the data of official website, Zhonglun Law Firm was established in 1993, which is one of the largest comprehensive law firms in China. According to Fuchuang Precision Prospectus, there are five lawyers who wrote and verified the transcripts, namely Tang, Gu Pingkuan, Mu, Su Fulei,.

For Zhonglun Law Firm, this lineup is luxurious. Official website, a law firm, shows that Tang, Gu Pingkuan and Mu are all equity partners of the law firm. In addition, Tang was appointed as a member of the first Shanghai Municipal Committee and the first reorganization committee of Beijing Stock Exchange in June last year 165438+ 10.

65438 10 8, Wang, a senior investment banker, said in an interview with the reporter of National Business Daily that lawyers' participation in writing the prospectus is the direction that the regulatory authorities have been working hard to implement. Because the prospectus is essentially a legal document, and the role of brokers is mainly sales, it is generally written by lawyers internationally. Of course, in China, corporate IPOs are usually led by sponsors, and communication with audit departments is also led by sponsors, so most of the prospectuses are written by brokers.

Wang analyzed that from a professional point of view, investment banks are better at business and financial analysis in the prospectus; Lawyers' participation in writing prospectus should be more about checking words and reducing legal risks.

For Fuchuang Precision's high attorney fee of 37.5 million yuan, Wang believes that it is not a trend for lawyers to write prospectuses for the time being. At most, it is a test of water, and writing a prospectus will not increase the risks borne by lawyers. This price is really a bit high. Maybe it's the first time. I have no experience. I wonder how much it costs. The fee is negotiable.

On June 8, 10, the reporter of National Business Daily called Fuchuang Precision and two lawyers, Tang and Gu Pingkuan, but the phone was not connected. As of press time, the relevant interview outline has not been answered.

The issuance fee of 263 million yuan ranks among the top ten A shares this year.

Fuchuang Precision is a professional manufacturer of precision parts for semiconductor equipment. From 20 19 to 202 1, the company's revenue is 25335 12000 yuan, 48 12 18500 yuan and 84 128200 yuan respectively; The net profit attributable to the owners of the parent company is-33.344 million yuan, 93.505 million yuan and 1.2649. 1.8 million yuan respectively.

Image source: screenshot of prospectus

According to statistics of Wind, Fuchuang Precision IPO not only has high attorney fees, but also has a total issuance fee of 263 million yuan, ranking 10th among more than 300 A-share companies listed this year. According to Wang's analysis, the high fees of Fuchuang Precision Lawyers may also be related to the company's high initial fees. The initial cost is higher, which may be due to the financing of more than 2 billion.

Image source: screenshot of prospectus

It is understood that Fuchuang Precision issued 52.2633 million shares this time. According to the issue price of 69.99 yuan/share, the total amount of funds raised in this issuance is 3.658 billion yuan; After deducting the issuance expenses, the net amount of funds raised was 3.395 billion yuan.

According to the issuance plan, Fuchuang Precision originally planned to raise 6,543.8+0.6 billion yuan for the intelligent manufacturing production base of integrated circuit equipment parts and supplementary working capital. In other words, Fuchuang precision financing is about 2 billion yuan.

People in the legal profession also believe that it is of certain positive significance for Fuchuang Precision Lawyer to participate in writing the prospectus. 10 On June 8, Xia, director of the Research Center for Legal Protection of Small and Medium-sized Investors, told reporters through WeChat that the Guiding Opinions on Improving the Information Disclosure Quality of Prospectus under the Registration System issued by the CSRC in June 2022 clearly pointed out that the information disclosure quality of Prospectus has improved during the pilot reform of the registration system, but there are still problems such as poor readability, poor relevance of investment decisions and poor pertinence of information disclosure, which are reflected by many parties in the market. From this point of view, lawyers' writing of prospectus has three positive meanings: first, the most direct thing is to increase logic, shorten the length and extract the core decision-making value. The most direct impact is that there are 273 pages of Fuchuang Precision Prospectus written by Zhonglun Law Firm, which is lower than the average level of 380 pages in IPO market. Second, it is more in line with international practice and makes the prospectus return to a legally binding legal document; Third, it is conducive to consolidating the legal responsibility of intermediaries and enhancing the compliance value orientation of listed companies.

Lawyers' writing of prospectus is conducive to preventing securities fraud, protecting the legitimate rights and interests of investors, consolidating the legal responsibility of intermediaries as' gatekeepers' in the capital market, and enhancing the value orientation of comprehensive compliance of listed companies. Summer said to.