The Research On The Using Of IPO Raising Funds Of Hunan Zhongke Electric Co.,ltd Based On Investor Protection Perspective

Listed companies can raise funds through initial public offerings to solve theproblem and difficulties they have confronted in corporate financing, they put moneyin high-yield projects in order to sharpen the competitive edge in the market. Smalland medium-sized investors provide their money for the raisers through the capitalmarkets which act like an investment and financing platform. What they couldn’t careless is how their money is being used. Super-raised phenomenon is very commonsince GEM startup, at the same time, listed companies have many problems in theprocess of capital using, such as changing the way of using raised funds at will andprofligate use of these funds. Interests of small investors have been inevitablyviolated, and more attention has been drawn to the management and usage of theraised funds in the listed companies. Therefore, this article studies the issues arisingin the process of the use of raised funds in the perspective of small and medium-sizedinvestors, and brings forward the improvement measures, which has its significance inregulating the usage of raised funds and protecting the interests of smaller investors.Based on the case study of Hunan Zhongke Electric Co.,LTD, the authorintroduces the fundamental situation of the corporation and its motivation to raisefunds. Furthermore, the article summarizes the overall situation of fund raising andthe usage of raised funds; analyzes the the productivity in the use of raised fundsbased on the company’s Operating condition and the acquired company’s financialcondition and its recent R&D status; through field surveys and data analysis thewriter pointes out the problems that exist in the use of raised funds, issues includingthe irrational changing of the fund using plans, the illegal use of funds, lack oftransparency in the use of permanent supplement working capital, and the idling ofsuper-raised funds. At last, after a comprehensive understanding of the causes of theseproblems, this article conceives the issue-specific improvements combined with thecircumstances of Hunan Zhongke Electric Co.,LTD. The purpose of this article is toprovide comprehensive, concrete and feasible improvement measures, aiming atpromoting the management level and the efficient using of raised funds in HunanZhongke Electric Co.,LTD and any other similar enterprise.