Tianshan Aluminum Backdoor Listing Motivation And Performance Analysis

In recent years,the rapid development of the economy and society has enabled private enterprises to make continuous progress and breakthroughs in all aspects.Many strong private enterprises have emerged from various industries and have embarked on the capitalisation path to achieve faster development.Shell listing is an M&A strategy that uses "shell resources" to achieve the goal of listing.Due to China’s strict IPO standards and cumbersome approval procedures,many companies with financing needs have turned to shell listings when they are unable to meet IPO requirements.Since 1997,shell listings have become a trend in China’s capital market.The development of China’s capital market has seen a number of IPO suspensions,as well as the influence of China’s listing system and the existence of "shell resources",which have further contributed to the development of shell listings.Shell listing has become an effective way for companies to expand their financing platform and obtain listing status,and is an important way for listed companies to avoid the risk of suspension and achieve breakthroughs.In addition,it enhances the availability of social resources and brings additional social benefits.Although the success rate of shell listing is higher than that of IPO,there are many cases of failed shell listing or successful shell listing but implicated by historical issues such as asset or performance gap.The selection of the model,the valuation of the shell listing and the evaluation of the performance of the shell listing are all key aspects of the transaction in the process of shell listing practice and are worthy of in-depth study and exploration.This thesis selects the case of Tianshan Aluminum’s shell listing of New Territories Pumps to analyze the motivation and performance change of its shell listing.Firstly,this thesis compiles and summarizes the relevant literature,theories and concepts related to the motivation of shell listing and paperformance of shell listing.Secondly,it introduces the shelling process of Tianshan Aluminum’s shelling of New Territories Pumps,as well as analyzes the motivation of Tianshan Aluminum’s shelling and the motivation of New Territories Pumps’ sale of its shell.Then,we analyze the market effect of the shelling of New Territories Pumps by Tianshan Aluminum using the event study method,evaluate the solvency,operating capacity,profitability and growth capacity of Tianshan Aluminum after the shelling,and evaluate the company size,performance commitment and R&D investment from the non-financial point of view after the shelling.Finally,through the above analysis and conclusion,Tianshan Aluminum entered the capital market through the shell,although the performance after the shell is not big ups and downs,but from the overall performance,the effect brought by the shell listing is positive and positive,Tianshan Aluminum shell listing transaction in expanding corporate financing channels,improving corporate visibility,optimizing corporate governance structure and other aspects to achieve significant results,and also for the future development of the enterprise It also provides a strong guarantee for the future development of the enterprise.