What does the placement of private equity institutions mean?

Private placement refers to the non-public offering of shares by listed companies to a few qualified specific investors. It is stipulated that the number of issuers shall not exceed 65,438+00, and the issue price shall not be less than 90% of the market price of the 20 transactions before the announcement. The issued shares shall not be transferred within 65,438+02 months (become the controlling shareholder or have actual control rights within 36 months after subscription).

Rights issue is the behavior of listed companies to further issue new shares and raise funds to the original shareholders according to the needs of the company's development and relevant regulations and procedures.

The role of private placement:

1. Use the market-oriented valuation premium of listed companies (relative to the book value of the assets of the parent company) to enlarge the assets of the parent company through the capital market, thus enhancing the asset value of the parent company.

2. It meets the regulatory requirements of the CSRC for listed companies, fundamentally avoids the related transactions and horizontal competition between the parent company and listed companies, and realizes the complete autonomy of listed companies in finance and operation.

3. For group companies with low holding proportion, the control of listed companies can be further strengthened through private placement.

4. For listed companies and groups of state-owned enterprises, the management level is reduced, a large number of external problems are internalized, and transaction costs are reduced. The market value-oriented mechanism can be strengthened more effectively through equity incentives.

5. The importance of timing. At present, the valuation of listed companies is still at a low level. At this time, it is more beneficial for the group to take private placement and obtain more shares from the perspective of future reduction.

6. Private placement can be used as a new M&A means to promote the growth of high-quality leading companies through M&A. ..

7. Non-public shareholders and powerful investors with strong risk tolerance can transfer funds to listed companies at prices close to or even exceeding the market price, so as to minimize the investment risks of minority shareholders. Because the largest 10 investor who participates in the orientation has a clear lock-up period, generally speaking, listed companies that dare to propose a non-public offering plan and have been accepted by large investors will have better growth.

References:

Baidu encyclopedia-private placement