A Study On The Benefit Transfer In Private Placement With High Ratio Stock Dividends

Private placement has always made outstanding contributions to the listed companies in raising funds,introducing strategic investors and optimizing resource allocation.It is the main way of equity refinancing in China.However,there has been a critical problem of interest transmission in the directional issuance,which damages the interests of investors and affects the healthy development of listed companies.Therefore,this issue has also been the long-term concern and research of the academic and practical circles.In February 2020,China Securities Regulatory Commission officially issued new regulations on refinancing.Among them,the restrictions on private placement have been greatly relaxed in the "revised implementation rules for private placement".The introduction of new regulations and the relaxation of restrictions have strongly inspired the equity refinancing market,but at the same time,it has also intensified people's concerns about the issue of interest transmission.It is of great practical significance to think about how to make the targeted issuance bring "fresh blood" to the listed companies and eliminate the "virus" of interest transmission,so as to ensure the sustained and healthy development of the fixed increase market.There are many means of interest transmission in directional issuance,such as high cash dividend,poor assets injection and low issuance price.In recent years,in the A-share market,there are many cases that use high delivery to cooperate with directional additional issuance to deliver benefits.This paper will select Tongling Nonferrous as one of the most representative cases for case analysis.Based on the three theories of controlling rights and interests,this paper begins with a comprehensive review of domestic and foreign literature,and expounds the motivation of targeted additional issuance and high transfer,the market reaction after the announcement of the plan,and the expectation of fixed increase and lifting the ban on the stock price.Subsequently,this paper collates the current situation of China's directional additional issuance and high delivery to lay the background for the following article.In the case introduction part,the whole process and key time nodes of the implementation of directional additional issuance and high delivery transfer are combed in detail.In the part of case analysis,this paper analyzes and proves the method of interest transmission from Tongling Nonferrous Metals Co.,Ltd.to institutional investors from five aspects,such as frequent adjustment of issuance pricing,careful selection of high transmission timing,market reaction before and after the announcement of high transmission plan.At last,this paper concludes that Tongling Nonferrous Metals Co.,Ltd.has stimulated the short-term surge of stock price with a series of combos,such as carefully selecting the timing of high delivery and so on,which paves the way for the targeted issuance and lifting the ban,so as to achieve the purpose of delivering benefits to institutional investors.Tongling Nonferrous' s interest transmission method is very typical and unique,which has research value.Through the case study,the paper also draws the enlightenment that on the way of developing the equity refinancing market,for the regulators,we should not only timely input "fresh blood" for the enterprises with real potential and demand,but also resolutely crack down on the bad wind of interest transmission in targeted issuance,continue to improve the supervision of high-speed transmission,and strengthen the follow-up use of the raised funds Supervision;for listed companies,they should strive to return to their roots,improve their core competitiveness,and let investors share the fruits of the growth and development of enterprises;for investors,they should pay attention to identifying investment risks,strive to improve their investment level,and make rational investment.