Case Study On Equity Private Placement Of Luoyang Molybdenum Industry

Since the reform of non-tradable shares in China,private placement has gained great popularity in the capital market due to its wide coverage.Although the total amount of private placement in the capital market has been tightened to a certain extent,private placement still has its irreplaceable advantages: low issuance cost,fast review speed,and more targeted.After the private placement,the enterprise will have a healthier capital structure.It can be said that private placement,based on the long-term development of enterprises,plays an important role in the operation of enterprise assets.Starting from the hot topic of a private placement,this paper selects Luoyang molybdenum industry,a listed company in the nonferrous metal industry.The private placement of Luoyang molybdenum industry is a relatively successful case in the market in 2017,which is favored by investors in the capital market.It not only successfully raised project funds but also reasonably improved the capital structure of the company.Through research,this paper finds that private placement is closely related to the future development strategy of enterprises.It believes that private placement can stimulate the company's stock price in a short time.Finally,this paper suggests that the regulatory authorities should still strictly enforce the law,listed companies should carefully choose refinancing means,choose really suitable for their own situation,adapt to the future development of enterprises financing means.Make directional add can bring long-term truly for the enterprise,benign improvement.