The Reorganization Of The Divine Shares Listed Case Analysis

This dissertation uses the SHANXI SHENZHOU COAL ELECTRICITY COKING Co., Ltd.(SSCECC) to illustrate and evaluate the process of company抯 restructuring, the IPO (Initial Public Offering ) application materials, and the whole application process and public information disclosure. Also, the status quo of the China抯 capital market, issues involved in it and the future development trend are discussed to analyze the issues in the investment banking business. This thesis is geared to give some clues for State Owned Enterprises (SOEs) to change operating regime, restructuring and listing. This dissertation is divided mainly into two parts. The first part addresses the restructuring and the IPO process of SSCECC and the problems encountered during the process. In this part, you will find the basic information of SSCECC and advocators, introduction to initial public offering, the utilization of raised fund, the equity structure. Also, competition of affiliated enterprises, the related transactions, financial status, asset evaluation, and profitability forecast are all dealt with in this section. SSCECC is licensed by Shanxi provincial government and the IPO is initiated by the Taiyuan Coal Co., Ltd. After restructuring of its operating assets, four other companies joined it and established the SSCECC. in December 1998. The total equity shares are 245,190,000. One year later after the establishment of this SSCECC. It formally applied to the China Securities Supervising Committee (CSSC) and approved to increase its capital and equity expansion in May 2000. Two methods are used in this process. They are the Legal Unit Allocation (LUA) and Allocation to the Common Investors through the net. The allocation enables SSCECC 憇 equity to 395,190,000. SSCECC is formally illustrated in Shenzhen Stock Exchange in June 2000. The IPO A share adopts the over-stated-value method. The price is set at 4.60 RMB. The Price to Earnings Ratio is 31.94. The total raised fund is 673,030,000. It is invested in the Gas Development project in the Taiyuan city and the acquisition of LuYuKou Coal Mine. The second part evaluates the SSCECC case outlined in the first part. The issues involved in the investment banking business are addressed. The financial result and conditions of restructuring, the main points in SOEs restructuring, Mergers and Acquisition, pricing of stock listing and other financial issues are all addressed in detail. The meanings of restructuring to establish a full-fledged shareholding system are in favor of disconnectin~ government to enterprises, transforming management methods, and increasing financing way of enterprises. The IPO must accord with the company law, the securities law and the rules of CSSC. The restructuring is one key point of the LPO. The restructuring is a systems engineering, in which we ought to harmonize the material resources, the human resources and organization resources. The principles of the restructuring are sales being the main income, avoiding competition of affiliated enterprise, regulating related transactions, fitting profit, fitting capital structure, and systematize design. There are four pattern of restructuring. The SSCECC case is the principal part restructuring pattern. Furthermore, we should pay attention to other problems such as making a clear distinction of proprietorship, asset evaluation, liability management, audit, system innovation, and so on.