Case Analysis Of Private Placement In Chengtun Mining Group Co.Ltd

Listed companies in order to support the further development and expansion needs funds,assets,and need to refinance.Compared with debt financing,equity financing of listed companies to become the first choice.In equity financing,listed companies choose private placement because the private placement issuing fast,low risk,low cost,and low threshold.Although there are many advantages of private placement,it can also easily become the largest shareholder of the interests of the transport tool.Large shareholders output interests from the private placement,this behaviour has been seriously infringed upon the interests of minority shareholders.So find a means of conveying their interests,solve the problem,protect the interests of small investors,be of great urgency.In this paper,application case study method to study the asset injection type private placement in Chengtun mining group co.Ltd in 2013,analyze what are the problems in the process of asset injection?Whether there is transfer of benefits issues?Injection of assets can enhance the performance of listed companies?And then make recommendations for the problems.The main findings are:there are some problems in the process of private placement,such us the choice of the reference date of the private placement will lead to the issue of pricing is too low,the appraisal value of the Xingan Emma mining Co.Ltd industry is inflated,and the major shareholders sharp sell-off behavior of cash behind shares lifted.Then analysis of these issues for Chengtun mining group Co.Ltd's share price during the private placement,the performance development situation of Chengtun mining group Co.Ltd,the interests of medium and small investors.Through simulation,in the private placement plan announcement,the issue of private placement has a positive announcement effect,but in the private placement announcement day with a negative announcement effect,this may be due to investors are not optimistic about the private placement.After the injection of Xingan Emma mining Co.Ltd,Chengtun mining group Co.Ltd performance and no overall growth,the private placement did not achieve the role of improving performance.And the interests of the original shareholders were spread out after injected Xingan Emma mining Co.Ltd,the private placement against the interests of medium and small investors.