A Case Study Of GA:Delisting And Back-door Listing

In 2015,more than 30 U.S.listed Chinese companies announced to go private.Since then,it has become an upsurge of China concept stocks.GA was a listed company on the New York Stock Exchange.But six years later,it announced to go private,reverse merged Century Cruises and returned back to domestic capital market.Therefore,GA has integrated research elements:public-private-public.The author consults predecessor's literature,uses the method of single case study and combines with GA's actual situation to finish this thesis.The thesis analyzes from three main aspects.(1)The study finds that there are several reasons for GA's delisting.First of all,China concept stocks were sluggish at that time in U.S.stock market and their share prices were substantially underestimated.Secondly,through delisting,the GA wanted to do some strategic adjustments,which were good for its future development.Thirdly,delisting could save listing and agent costs,which leads to the tax deductibility.(2)GA's delisting strategies:GA used reverse triangular strategy,chose a suitable time,set a reasonable repurchase price and introduced institutional investors to help it finish delisting.(3)GA's relisting strategies:As a result of balancing time and efficiency,GA chose Century Cruises as the target company for back-door listing.And it was also a mutual selection process for both of them.The market got strong responses when GA returned back.GA's market value grew quickly and it realized its original intentions.By analyzing the motivations and strategies of GA's privatization and relisting,this thesis wants to provide references that not only all kinds of delisting and relisting strategies but also company's strength that helped it finish delisting and back-door listing so successfully.It tells us to regard listing and delisting rationally and choose a suitable listing location.At the same time,we should realize the return risks.It will be helpful for the authority to perfect domestic capital market mechanism and attract high quality overseas listed companies to return.