Recently, the Shanghai Stock Exchange announced that in order to better play the financing function of the Science and Technology Board, the Shanghai Stock Exchange will increase the “capital supply” of the Science and Technology Board and build a more Efficient mergers and acquisitions, reorganization and refinancing systems, to make market-oriented and convenient arrangements for the development needs of technological innovation companies.
At present, the first case of merger and acquisition reorganization under the registration system has been born. At the same time, the consultation draft for the refinancing rules was released at the end of 2019. According to Peng Mei reporters, the official rules are expected to be implemented soon.
M&A, restructuring and refinancing system is the most important capital operation mode of the science and technology board enterprises after listing, which helps the company to continuously improve the quality and support of the capital market Technology competitiveness.
Dong Dengxin, director of the Institute of Financial Securities of Wuhan University of Science and Technology, pointed out in an interview with a surging news reporter that the next direction of the Science and Technology Board is to encourage mergers and acquisitions, and Further relax the control of refinancing, allowing listed companies to grow bigger and stronger in the shortest possible time.
What is the significance of M&A, restructuring and refinancing for listed companies on the Science and Technology Board?
“M&A is the main form of business growth and a shortcut for companies to grow bigger and stronger.” Dong Dengxin answered questions from surging journalists. He said: “We have seen that many listed companies in the United States have grown bigger and stronger through continuous mergers and acquisitions. This is why the number of listed companies in the United States has risen from nearly 10,000 in the mid-1990s to more than 6,000 now However, the reduction in the number of listed companies did not result in a reduction in the total market value of US stocks, because companies are constantly merging, the size of listed companies continues to grow, and the market value also increases.”
According to his analysis, the reform of China’s registration system, as well as the improvement of the basic system of other capital markets, will also continue to relax administrative controls, activate market mechanisms, and play a decisive role in the market. Listed companies grow bigger and stronger at the fastest speed in the shortest time. At the same time, relaxing the control of refinancing is also a very important direction, especially the directional additional issuance.
Dong Dengxin analyzed that private placement is the most popular way of refinancing for Chinese investors.The fund-raising ability is also very strong, even exceeding the IPO fund-raising ability. Because my country’s new share issuance pricing is relatively sensitive, generally speaking, it will not be too much, which makes the IPO fundraising ability at a discount. The loosening of refinancing, especially directional additional issuance, has been unanimously welcomed by investors, and listed companies are also more willing to use this method to raise funds, because the scale of the fixed increase can even reach several times the size of the IPO fundraising .
“Because of this, many Chinese listed companies will try to reduce the number of IPO issuance when listing, leaving more opportunities for stock issuance after listing. As a bargaining chip for future issuance, this will enable listed companies to issue the same equity but can obtain a multiplied fund-raising effect through fixed increase. After raising funds, it can also effectively support listed companies in mergers and acquisitions and scale expansion, such as Acquire some listed or unlisted projects, especially for high-tech companies. After obtaining huge funds through private placement, you can selectively acquire some high-tech small companies, which will strengthen your own strength and benefit the company. Make the main business bigger and stronger.”
The first case of M&A and reorganization of the Science and Technology Board has been completed, and the review period of Huaxing Yuanchuang is only one and a half months
November 29, 2019, Shanghai Stock Exchange The “Review Rules for Major Asset Restructuring of Listed Companies on the Science and Technology Board” issued by the Institute provides an institutional basis for the merger and reorganization of the Science and Technology Board.
On the evening of December 6, 2019, the first “crab eater” appeared, Huaxing Yuanchuang (688001) announced that it planned to issue shares and pay cash. Way, acquire 100% equity of Suzhou Oulitong Automation Technology Co., Ltd. (Oulitong).
On April 10, 2020, Huaxing Yuanchuang announced that it had received the application documents from Shanghai Stock Exchange for the company to issue shares and pay cash to purchase assets and raise supporting funds. The audit inquiry letter indicates that the M&A and reorganization audit under the registration system has officially pressed the start button.
After just one and a half months, the review has been completed. On the evening of May 25, Huaxing Yuanchuang said that it received a notice from the Shanghai Stock Exchange Science and Technology Board Listing Review Center on the same day that it agreed to apply for Huaxing Yuanchuang to issue shares to purchase assets and raise supporting funds.
From the release of the M&A and restructuring plan to the review by the exchange, it is controlled within half a year, which is the first important step of the Science and Technology Board in M&A and restructuring/image/70/612/736.jpg”>