Case Analysis Of Kingsoft Splitting Up Kingsoft Office And Returning To A-share IPO

With thirty years of development,the capital market mechanism in China has been improved and the capital operation method has been gradually brought in line with the international standards.The method of spin-off listing has provided a new perspective in solving the development issues of diversified companies.Under the background of the constant deepening of diversified development,the enterprises are faced with the problem of unbalanced business focus due to diversified investment in multiple industries with different operation modes.The diversified investment in multiple industries leads to the fuzziness of the major business and the ambiguity of business focus,which results in the effect of making one plus one less than two.In the face of such business difficulties,more and more listed companies start to learn from the advanced experience of foreign capital markets and choose the method of spin-off listing to solve such problems.In recent years,with the rapid development of the capital market in China,the system of capital market has been improved with strong financing capacity.Based on the advantage of liquidity premium compared with the Hong Kong stock market,many Hong Kong-listed companies are considering spin-off listing in the A-share market.In addition,the establishment of the science and technology innovation board also provides a convenient channel for the IPO in the A-share market.Firstly,based on the case study of the spin-off of Kingsoft Office from Kingsoft,the concepts and relevant theories of spin-off listing,corporate performance and corporation value assessment was described in this thesis on the basis of summarizing the existing domestic and overseas research so as to lay a theoretical basis for this thesis.Secondly,the spin-off process of Kingsoft Office from Kingsoft was described combined with the development background of Kingsoft and Kingsoft Office.Thirdly,the reasons for the spinoff of Kingsoft Office from Kingsoft were analyzed in this thesis.Fourthly,the impact of the spin-off on the short-term performance,financial performance and non-financial performance of Kingsoft was analyzed though event study method,principal component analysis and non-financial performance analysis.Finally,the valuation before and after the spin-off of Kingsoft Office was analyzed through the modified DEVA Model.According to the results of the analysis,the conclusions of this thesis are as follows: spin off and listing is a deliberate decision of enterprises;Spin off can improve the short-term performance,financial performance,non-financial performance and enterprise valuation.Through the case of Kingsoft's spin off of Kingsoft Office,the enterprises to be spin off and listed can learn from their experience of spin off and listing to improve their performance and valuation,but at the same time,they should also clarify their own enterprise needs and strategic planning,and reasonably select the listing plate and timing.