A Case Study On Financial Issues In Equity Carve-outs

In the capital markets of developed countries,Equity carve-outs has become the mainstream of corporate restructuring.Not only foreign companies but also many domestic companies listed abroad have also gradually accepted this shrinking corporate restructuring.For example,Sina carved out Weibo listed on the Nasdaq,and has received good feedback in the capital operation and business development.But in the domestic capital market,It is rare for an enterprise to restructure its business through Equity carve-outs.The study of the issue of Equity carve-outs will help guide domestic enterprises to use this kind of contractive restructuring to conduct capital operationBased on the review of relevant research results of domestic and foreign scholars,this paper uses the capital market theory and the principle of financial management,and uses the research methods of normative analysis and case analysis to study the financial problems in the Equity carve-outs of listed companies.Its content mainly includes three parts: The first part is theoretical analysis,it summarizes the definition of Equity carve-outs,the motivation of Equity carve-outs and the theoretical research on Equity carve-outs market performance after Equity carve-outs by reading the literature of domestic and foreign scholars;The second part is the case analysis,it introduces the background,process and motivation of TBEA listing,analyzes the stock pricing,the assessment of spin-off assets and the introduction of cornerstone investors,and also summarizes the economic consequences of TBEA's Equity carve-outs.The third part is the countermeasure research,which summarizes some issues that companies should pay attention to in their Equity carve-outs and listing operations,mainly including whether the spin-off operation complies with the company's development strategy,the choice of the target place for spin-off listing.After studying the case of TBEA's Equity carve-outs of Soteco to Hong Kong,reached the following conclusions: Equity carve-out should be based on the company's strategy of;Equity carve-out should chose a right market;Equity carve-out should select high-quality assets;Equity carve-out should pay attention to financial problems.