Motivation And Performance Analysis Of Directional Additional Issuance Of New Third Board Listed Companies

The Shenzhen Juzhengyuan Co.,Ltd.is one of the listed companies on the new third board.Its main business is crude oil trade,storage and transportation.Since 2014,because of the internal and external environment changes,the company urgently needs funds for strategic adjustment and implementation.From 2015 to 2018,Juzhengyuan Company has carried out four directional issuance,among which,through the third directional issuance,Guangwu Holding Group Co.,Ltd.was introduced and became the largest shareholder of Juzhengyuan Company.After the transformation from ordinary private enterprises to senior state-owned enterprises,the company’s performance has gradually improved and become the "leader sheep" in the new three-board market." Firstly,we use strategic analysis to find out that the motivation of directional additional issuance of Juzhengyuan Company is to adapt to the environment,supplement funds and seek alliances.Then we use performance analysis to draw the conclusion that these directional issuance mainly bring positive economic consequences to Juzhengyuan Company.Finally,five suggestions are put forward for Juzhengyuan Company to continue financing and expand new industries,to build market penetration strategy by using Guangwu Group’s network,to establish a long-term strategy of "waiting for turning board" while preventing excessive growth of total capital;to find the optimal capital structure for financing for listed companies on the new third board,to seek strategic investors by directional issuance,to rationally issue additional stocks and to be appropriate.Equity incentive and five suggestions to identify the trend of private placement.So as to contribute to the vigorous development of the new third board listed companies.