Empirical Analysisof Participating In Non-public Offerings’ Earnings

Public offerings and non-public offerings have always been two important ways to refinance for listed companies. Nowadays, non-public offerings, also pirate equity placement, has become the main refinancing means for Chinese listed companies. Plans of seasoned equity offerings published and implemented by A-share listed companies have increased year by year since 2006.Since there are fewer participants in non-public offerings, the participants can get mores stocks for placement, and the bid price is usually lower than the market price, non-public offerings are more attractive for institutional investors. However, stocks for non-public offerings have to be locked for 12 months or 36 months before they are traded on secondary market, so there is also greater risk.The author summarized articles related to non-public offerings, researched historical data(stocks locked for 12 months only), and tried to discover the factors affecting the rates of return, so as to provide reference for investors.The highlight of this article is the conclusion, which can be put into practical application and provide reference for security investment. The conclusion can better help market investors understand the effect of non-public offerings. It can also provide market manager with valuable research so that they can better lead non-public offerings and protect the interests of investors; so non-public offerings can be more standard and more effective to refinance.