Home » Perspective of “A split A” listing case: ten market capitalization has reached more than 50% of the parent company

Perspective of “A split A” listing case: ten market capitalization has reached more than 50% of the parent company

by admin

(Original title: Perspective on the listing case of “A split A”: ten strategic emerging industries whose market capitalization has reached more than 50% of the parent company are important supports)

On June 5, Tianma Intelligent Control was officially listed for trading. The stock price rose by more than 9% on the first day, and the total market value exceeded 14 billion yuan. This is the second A-share listed company to spin off a subsidiary to achieve IPO listing this year after Youche Technology.

Reporter According to the statistics of Flush iFinD, since the launch of the domestic listing pilot of the spin-off subsidiaries of listed companies in December 2019, 23 listed companies in the A-share market have achieved IPO listings by spin-off subsidiaries, raising a total of more than 47 billion yuan. . These companies are mainly listed from the second half of 2021 to the end of 2022, with an average increase of 88% on the first day of listing, and three of them rose by more than 200%. Since their listing, the stock prices of the 23 companies have risen by an average of about 50%.

Thanks to the rising share price, the market value of over 40% of the subsidiaries has reached more than 50% of the parent company, and 2 of them have more market value than the parent company. According to Flush iFinD data, as of the close of trading on June 6, among the 23 subsidiaries, the market value of 10 such as Ruijie Networks, Ruitai New Materials, Triumph New Materials, Chengchang Technology, and Xiamen Tungsten New Energy has reached 50% of the parent company’s market value. %above. Among them, the market values ​​of Ruijie Networks and Ruitai New Materials are 2.55 times and 1.23 times that of their parent companies, respectively.

See also  Monetary policy exerts efforts to stabilize the economy and goes all out to bail out market players-Interview with Chen Yulu, Deputy Governor of the People's Bank of China - Xinhua English.news.cn

Yin Zhongyu, head of the M&A business of the Federal Reserve Securities, told the “Securities Daily” reporter that generally speaking, those that can achieve “A split A” are leading listed companies in the industry. After splitting and listing, it can bring financing convenience to subsidiaries and restore value. Discovery and other benefits.

Talking about the phenomenon that the market value of spin-off subsidiaries has risen, even surpassing that of the parent company, Dong Zhongyun, chief economist of AVIC Securities, believes that there are three main reasons: First, the spin-off subsidiaries are generally high-tech enterprises in the period of rapid growth , after the spin-off and listing, the direct pricing and full recognition of the capital market can be obtained; second, the subsidiary’s operation management and incentive measures are more flexible, and it is easier to stimulate the enthusiasm of the management and employees after the spin-off and listing; third, the subsidiary After the company is spun off and listed, its financing ability will be enhanced, and its operating scale, research and development capabilities, and profitability will be further improved.

According to the reporter’s statistics, the above-mentioned 10 subsidiaries whose market capitalization has reached more than 50% of the parent company have not been listed for a long time, and all of them come from strategic emerging industries. high proportion of features. From the perspective of industry distribution, 4 companies come from the new generation of information technology industry, 3 companies come from the new material industry, 2 companies come from the biological industry, and 1 company comes from the high-end equipment manufacturing industry; and from the perspective of research and development, Flush iFinD data shows that in 2023 a In the quarter, the average R&D expenses of the 10 subsidiaries increased by nearly 19% year-on-year, and the average R&D investment accounted for 15%. In 2022, the average R&D personnel of the 10 companies will account for about 30%.

See also  Long-term care insurance: support with care - 80 percent do not use the relief amount

Some investors worry that the spin-off of core high-quality assets will lead to the “hollowing out” of the parent company and damage the interests of shareholders. In this regard, Dong Zhongyun said that there is no need to worry too much.

He said, first, the “Spin-off Rules of Listed Companies (Trial)” released in January last year clarified a series of circumstances under which subsidiaries cannot be split and listed, effectively curbing listed companies from spinning off their core businesses. Judging from the current case, the main purpose of the spin-off is to focus on the main business and achieve high-quality development of the parent company. Second, a spin-off is not a divestiture of assets. The current main mode of spin-off and listing is a holding-type spin-off, and most of them are directly controlled by the parent company. After the spin-off and listing, although the parent company’s profit may decline in the short term due to the dilution of shareholding ratio, in the long run, the subsidiary’s financing ability, operating scale and profitability are expected to be greatly improved, thereby driving the improvement of the parent company’s overall profitability. Third, after the spin-off and listing, the parent company and its subsidiaries can form a synergistic effect in terms of strategic planning, business support, and financing arrangements, and promote the common and steady development of both parties.

Wang Shiwen, a professor at the Business School of Suzhou University of Science and Technology, suggested that the regulatory authorities need to further regulate the spin-off and listing behavior, increase the supervision of the “hollowing” risk of the parent company, and strengthen the continuous supervision of the spin-off and listing companies.

See also  Croatia joins the euro: Bankitalia dictates the rules for payments

Disclaimer: The Securities Times strives for truthful and accurate information, and the content mentioned in the article is for reference only and does not constitute substantive investment advice, so operate at your own risk

Download the official app of “Securities Times”, or follow the official WeChat public account, you can keep abreast of stock market trends, gain insight into policy information, and seize wealth opportunities.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy