Case Study On Equity Private Placement Of Enlight Media

Since the reform of equity division in May 2006,as one of the forms of equity refinancing,private placement has been put on the stage of capital market.As a kind of flexible equity refinancing,it is widely accepted by the market,and has gradually become the main way of equity refinancing of the listed companies in China.Because of the lowest threshold of issuance,the simplest procedures of issuing,the most flexible pricing benchmark,the lowest price of cost,and the fastest speed of financing,Private Placement draws the attention of the market,and the popularity grows rapidly.According to statistics,during the year of 2014 to 2016,the proportion of A shares listed companies through private placement to raise funds to raise the proportion of the total amount of refinancing funds are97.89%,98.75% and 98.69%.From the percentage we can see that private placement has become the most popular way of equity refinancing.So why the private placement is so popular on earth? What are the economic consequences of private placement? How can it influence the development of enterprise?In this thesis,we analyze the case company with theoretical analysis and case analysis,based on the existing literature and theoretical basis,research on the effect of Enlight Media’s private placement through the case study method.Using the event study method to study the short-term effect and long-term effect of the private placement of Enlight Media.Study on the whole process of Enlight Media’s private placement systematically.Based on the motivation of private placement,market reaction,the operating performance,financial condition and other aspects of the effect in detail,it further analyses the effect and decision during this period of private placement,besides,it discusses whether the private placement can bring rapid development for the enterprise or not,hoping to provide certain reference and guidance to the other listed companies in China.Through the research,we can draw the following conclusions: the private placement of the company’s stock price changes depends on the market for the company’s future development expectations;private placement will have a positive short-term notice effect for short term,and in different stages of the private placement process,the market effect is different;comparing with public offering and rights issue,private placement can improve the financial situation of enterprises in the shortest time,short-term effect is obvious;the privateplacement partner will be binding to the company for the next one to three years.To a certain extent,it will affect the future development of the company.