Research On Pricing Of Private Placement Of Listed Companies

As one of the famous household electrical appliance enterprises in China,GREE's private placement of shares has been widely concerned and questioned by the takeover of Zhuhai yinlong.The paper takes market timing and enterprise valuation as the breakthrough point,uses the method of case analysis,discusses the GREE acquisition of Zhuhai yinlong scheme,is the price reasonable?Specific research on the following two issues:First,based on the acquirer's point of view,timing of private placement,the choice of the pricing base date and the reasonableness of GREE's own pricing?The two is based on the perspective of the subject,Zhuhai yinlong asset valuation is reasonable?What are the underlying motivations for premium acquisitions?There are two kinds of pricing unreasonable in private placement process:low price issue?overvalued assets.This study found that the two irrational pricing methods are reflected in the case.First,based on the acquirer's perspective,options for pricing base dates,The largest shareholder of GREE appliances choose the lowest price of the board of directors of the benchmark date of the announcement day of the decision before the 20 trading days as a private placement,on this basis,the additional price is determined;From the long-term trend of GREE's stock prices,the company's pricing base will be locked in a period of relatively low stock performance.Secondly,based on the perspective of the subject,using income approach to estimate Zhuhai yinlong,the rate of appreciation is 234.37%,further analysis showed that,such high asset prices do not match the profitability of the firm itself,asset value is grossly overvalued.The above two cases have proved the existence of irrational pricing,on this basis,the thesis further analyzes the motivation of premium purchase.The paper takes market selection and enterprise valuation as the breakthrough point,analysis of GREE's private placement of Zhuhai yin long acquisition pricing.In theory,it helps to understand the "high valuation" and "high premium" phenomenon in the process of private placement in China's capital market".In practice,it has certain practical significance in solving the pricing timing and valuation of the private placement process.