Pricing Of Seasoned Equity Offerings In Chinese Equity Market

Seasoned Equity Offerings ( SEOs) is the main refinancing channels in foreign mature stock markets. More and more Chinese companies-exchanged have refinanced by SEOs since 1999, especially after the China Securities regulatory commission issued the "the regular of companies-exchanged issuance exchange". The qualification of companies-exchanged has been lowered, and the main refinancing channels have been changed from quotations to seasoned equity offerings.Some foreign theories figure SEOs dose good to small investor. According to demonstration, SEOs was welcomed by companies-exchanged, at the same time the marketing price was descending. The main reason is that the pricing of seasoned equity offering is irrationality, supervisor dose not do its best, many companies-exchanged neglected improving the achievement and changed the investing direction at random, the effect of underwriting notarization dose not come true, the advantage of supervise dose not be sufficiency incarnated. The manager should come on some specific measures to improve the qualification of companies-exchanged and inspect rigidly.Under the especial framework of Chinese stock market, the wealth of non-circulating stockholder increasing and the wealth of circulating stockholder decreasing after the SEOs. So, non-circulating stockholder like to improve the pricing.The pricing of SEOs has relation with the interest of companies-exchanged, quondam stockholder, subsequent stockholder and underwriting. The rationality of the pricing for SEOs is the key problem to its success. So, it is very important to study the scientific pricingmodel.At present, there are three methods of SEOs pricing model. Now in the financial field, scientist discuss several pricing models, which all don't think of the effect of marketing price, which is the most difference from the IPO.We construct a new SEO pricing model based on BS formula in the article.This model thinks much of trend of marketing price compare with other models.'.It reflects the investor's estimate of companies-exchanged achievement and prospective income of this item. BS model is easy to calculate and easy to operate. Using BS model we calculate the model price of 36 companies and compare with other model price.Li haiping (finance) Directed by Yang chunpeng...