Analysis On The Path And Financial Effect Of Wuxi Pharmatech's Privatization And Regression

In view of the current overseas capital market,China Stocks has been short-selled by agencies such as Muddy Waters,and the market value has been underestimated,making it difficult to refinance.The domestic capital market is booming.Innovative companies have high P/E ratios and tens of billions of valuations,which can be quickly financed from the capital market.At the same time,the business model and profit model that are not understood,as well as the high cost of maintaining the listing,are also difficult for the development of the US capital market.Therefore,with the support of national policies,the Chinese stocks seeking privatization and listing in the domestic market are a viable option.The China Stock Exchange mainly withdraws from the overseas capital market by means of mergers,acquisitions,asset sales,etc.At the same time,the company adopts the backdoor listing method to list again in the domestic capital market,but some enterprises will adopt the direct IPO or the listing of the New OTC Market.However,market value management is only one reason for the return of Chinese stocks to domestic capital markets.Broadening financing channels,adjusting corporate strategies,and supporting national policies are also important considerations for privatization of enterprises.After the privatization of the Chinese stocks returned to the domestic capital market,the stock price soared in the short term,and the company's efficiency was stable and long,and it could obtain a positive financial effect.Therefore,this article will take the case of WuXi PharmaTech as the main focus,from the privatization regression path and financial effects as the main focus.The case selected by this article,WuXi PharmaTech,is the first company to adopt IPO spin-off in the domestic capital market,and therefore,WuXi PharmaTech as a case company analyzes the motivation,path and financial effect of its privatization.It is representative and it can provide reference for the subsequent privatization of the Chinese stock market to return to the domestic capital market.By analyzing the motivation of Pharmacological Refugee's privatization,the path of privatization and the path of returning to domestic capital market,and the performance of stock price and financial indicators after privatization returns,the positive financial effect of Pharmacological Privatization regression Argument.Specifically,this paper firstly summarizes the motivations for the return of WuXi PharmaTech's privatization to the domestic capital market by reading a large amount of literature and materials: national policy support,improving market value,adjusting corporate strategy,and reducing the cost of maintaining listing.Secondly,the analysis of the path of privatization returning to the domestic capital market,the complete dismantling of the VIE structure and the full repurchase premium laid the foundation for the rapid privatization of WuXi PharmaTech.At the same time,the IPO spin-off method has enabled the company to quickly return to China Stock Markets.The capital market not only broadens the financing channels,but also provides a good development platform for enterprises to focus on the development of small molecule R&D business.Thirdly,it analyzes the stock price of WuXi PharmaTech after the A-share listing,and uses the free cash flow discount model and the relative value valuation method to analyze the value of the company and the potential development potential of the future stock price,by comparing and analyzing the financial indicators of Yaoming Kant from 2015 to 2018,it is concluded that the enterprises have achieved positive financial effects after privatization returned to the domestic capital market.The article concludes with the following revelations: First,the privatization of the Chinese stocks needs to grasp the market opportunity;second,the spin-off method can improve the probability of successful return to the domestic capital market;third,the use of equity financing to reduce cash flow Pressure;Fourth,reasonably determine the tender offer price and reduce legal risks..