Category: Money tips Release Date: 2006-04-20
Recently, a number of stocks announced plans to issue a further trend of strong, such as the G CITIC, G Suning such disclosure programs in order to resume trading after the daily limit to close at, G Taihao cumulative gains and other firms are also very impressive. G SAIC announced last week that targeted additional 3.1 billion shares, stock prices then daily limit, even in the broader market fell 84 points Thursday when the stock is still up 4.02% contrarian.
Why is that investors have been avoided for fear of the issuance is less than it would be so popular? The main reason is that the current orientation of the issuance of additional and previously not the same as the previous largest shareholder is in fact a lion additional openings, small shareholders own money. And the additional performance immediately after the change of face, a disadvantage is the money of the investors, of course, additional unpopular. But now directed to issue additional shares within 12 months (large shareholders to subscribe for 36 months) can not be transferred, so that can reduce the expansion pressure, but also can contribute to enhance the performance of listed companies to make more investment value of individual stocks, investors certainly welcomed.
In addition, access to tradable Age, additional methods can be directed to the major shareholder of high quality assets into the company. In so doing, it helps to expand the size of the company's assets, improve profitability and investment value of listed companies; the other major shareholder of the holdings of equity can also choose an underweight in the secondary market liquidity. Through the private placement, a major shareholder can be more illiquid land, factories and other assets into liquid securities with strong assets, so welcomed by the market.
Additional strategies could be the introduction of new investors, these strategic investors generally stronger, not only to the company's new profit growth point, but also improve the corporate governance structure is conducive to long-term development. Because the non-public offering under the object shall not exceed 10 people, the number of small, these strategic investors to buy shares would represent a considerable proportion, together with its bid is not low (which provides for the issuing price of not less than 90% of market value), a year The lock-up. Therefore, these strategic investors from their personal interests, will be maintaining the company's legitimate rights and interests of large shareholders can play a restrictive role. Overall, the listed companies and investors are beneficial.
