Analysis On The Modes And Valuation Of Company Entirety Listing

Due to some historical reasons, most of the listed companies in China are equity carve-outs, which is the sale of stock in a profitable wholly owned subsidiary with great future potential of the corporation via an IPO. These carve-outs have brought some negative side effects to capital market, which are Related Party Transactions, horizontal competition, tunneling funds of listed companies and so on.After the non-tradable shares having been reformed, the capital market in China has solved the fundamental problem that blocked the progress of itself for a long time. Since the entirety listing of TCL group and Wu Gang Co. Ltd, entirety listing has become the focus, and with the help of national policies and related institution, it gets more and more popular. So the paper choose entirety listing as the research target. After analyzing the advantage, disadvantages and various conditions of entirety listing, the paper concludes that entirety listing is a way to improve the capital market in China. Second, the paper divides the modes of entirety listing into three modes: private placement, IPO &shares exchange, shares exchange merger. Finally, the paper analyzes and discusses the valuation issues on these entirety listing modes with cases.The article has developed two contributions: (1) the article has systematically reviewed and summarized those popular strategies and methods of entirety listing in the current, analyzing and evaluating those models'characteristics, advantages, disadvantages and applications. (2) the paper brings in the L-G model based on the stock prices according to the current situation of entirety listing. The article also improved the model according to China's capital market situation, companies'market values and synergy arising from the mergers and acquisitions. The improved model avoids the losses of the minority shareholders due to the process of stock replacement, making the article guidance in the industry.