Selection And Valuation Of Shell Resources For Backdoor Listing

With the deepening of China’s share-trading reform,the stock issuance system has been further improved,the freedom of financing in the securities market has been greatly improved,and the listing of backdoors is on the rise.The financing method of backdoor listing can broaden the path of listing and make it a simpler way to go public outside the IPO.This article takes 360 as an example to explore the selection criteria of shell resources and the valuation of shells.This article on the Qihoo 360 backdoor Jiangnan Jiajie research mainly has the following two aspects.On the one hand,why Qihoo 360 chooses to rely on Jiangnan Jiajie,on the other hand,how to make a reasonable valuation of Jiangnan Jiajie.Two questions that have been universally derived are: how to choose the criteria for shell selection and how to make a reasonable valuation of shell resources.Because a standard shell company is the foundation of the entire backdoor process.Valuation of shell resources is also critical,as the size of the shell valuation directly determines the cost of the borrower’s expenses and will have an impact on the company’s later operations.The purpose of this paper is to use empirical methods to study the conditions that shell companies should have,and to evaluate the shell resources with a variety of valuation models and methods,and to compare and analyze the valuation results to provide reference for enterprises to backdoor listing.This paper combines theory with case,asks questions in the case and quantifies and solves the problem.In this paper,the principal component analysis method is used to extract the four principal components in the quantitative shell selection,and further analysis and verification are carried out by the binary logistic regression model.The valuation method uses the market method,the dividend discount method and the real option method to calculate,which focuses on the applicability of the real option method and the construction of the model and the specific analysis of the indicators.At the same time,the results of the valuation are compared and analyzed,and the limitations of each method in the valuation of shell resources are proposed.It has certain reference value for both sides of the backdoor market.