Analysis On The Timing Of Non-public Offering Of Shares That Fall On Debut

The term of non-public offering refers to the sale of shares to a selected group of investors.According to Wind Statistics,there were 3355 non-public offerings during the period from 2007 to February 2017.The year of 2014 and 2015 witnessed a total of 1031non-public offerings that raised 2043 billion yuan,close to the total amount raised in the previous 8 years.Non-public offering has become a new way for listed companies in the A share market to refinance as it offers the benefits of low financing cost and operating flexibility.By the end of February 2017,according to the six major industry segments,with the first participation in private placement as a benchmark,a total of 940 participated in the private placement,which in the implementation of private placement in the break a total of678,in the private placement after the lifting of the ban Of the 520 companies,the average break rate of 45%,in the face of many firms below the issue price,whether it contains a huge investment value? Whether it will be able to benefit from long-term issuance of private placement As investors how to break from the company to find investment opportunities,has become a matter of concern.By February 2017,940 listed companies performed its first non-public offerings,among which 640 companies saw their shares fell on debut during non-public offering and520 companies continued the operation after the ban was lifted.Average chances of shares fall on debut reached 45%.Is there any investment opportunities hidden behind this phenomenon? What are the chances of profiting from holding non-public fall on debut shares? How to identify investment opportunities from those companies? Those questions are certainly worth our attention.This paper used statistics pulled from A-listed companies that performed non-public offerings from January to February 2017 and picked 940 companies in six industry sectors including Finance,Energy,Pharmaceuticals and health care,Manufacturing,and Telecommunication.By means of statistics and multiple regression,the author divided the process of non-public offering into three phases: the execution phase,before and after the ban is lifted.This paper performed empirical analysis of the timing of non–public offering of shares that fall on debut from three approaches,naming hold for long term,find opportunities in times of rebound and find opportunities from differences in premiumsexisting in different industries.By analyzing a large sample of historical data,the paper explained how to identify opportunities for investing in shares that fall on debut during non-public offering.