After two years, Nanjing Securities’ 5 billion yuan private placement plan has finally made progress.

On the evening of June 30th, Nanjing Securities announced that at today’s shareholders’ meeting, the “Resolution on Extending the Validity Period of the Company’s Issuance of A-Shares to Specific Objects and Related Authorizations” was passed.

The reporter noticed that the private placement plan of Nanjing Securities has been postponed several times and was supposed to expire on July 4, 2025. With the passage of the extension motion, the validity period will be extended by another 12 months from the original expiration date, that is, it will expire on July 4, 2026.

From its first disclosure in April 2023 to its acceptance by the Shanghai Stock Exchange in May 2025, Nanjing Securities’ 5 billion yuan private placement plan took two years but has yet to be finalized. During this period, the plan underwent significant adjustments and finally received the “Review Inquiry Letter” issued by the Shanghai Stock Exchange on May 27th, requiring the company to provide supplementary explanations on the application documents for the issuance of A-share stocks to specific objects.

On June 27th, the company officially disclosed the response report to the inquiry and the updated prospectus, marking that its 5 billion yuan private placement plan has entered a critical review stage.

According to the latest disclosed plan, Nanjing Securities’ fundraising direction has shifted from focusing on investment to a balanced layout: it will invest 500 million yuan each in investment banking, wealth management, proprietary trading, and asset management. 1.3 billion yuan was used for debt repayment and working capital replenishment, 1 billion yuan was invested in alternative and private equity subsidiaries, and 700 million yuan was used for information technology and compliance risk control.

Data shows that the current balance of bonds issued but not yet redeemed by Nanjing Securities is 21.4 billion yuan, with 7.7 billion yuan due by the end of 2025. A debt repayment plan of no more than 1.3 billion yuan seems unable to effectively “replenish blood”.

It is worth noting that Nanjing Securities completed a private placement of 4.375 billion yuan in 2020. In this round of inquiries, the Shanghai Stock Exchange raised questions about the company’s initiation of a new round of financing shortly after the previous fundraising was fully utilized. Nanjing Securities responded that the funds raised through the private placement in 2020 were fully utilized by June 2022, and the interval between this round of financing complies with regulatory requirements.