Case Study On The Backdoor Listing Of Offcn Education

It takes ten years to grow trees,but a hundred to rear people.China,as the world's largest population country,needs the support of private capital and social capital in addition to the national financial investment in order to achieve the high-quality development of education.However,due to the traditional non-profit nature of education,even though China has made great achievements in the investment of social capital in the field of education through many institutional reforms,such as the establishment of independent colleges,there are still institutional obstacles in some areas,such as A-share listing.In September 2006,New Oriental was listed in the US stock market,which opened the climax of the overseas listing of Chinese private education.In this context,the law of the people's Republic of China on the promotion of education run by the people's Republic of China revised in 2016 clearly divides private education into two categories: for-profit and non-profit.For-profit private education can obtain benefits in the form of "shareholders".Although this has eliminated the obstacles of private education listing and financing in the legal level,so far,no private education enterprise has been able to be listed in the domestic market in the way of IPO,except for a few listed in China's A-share market through merger and acquisition.As Zhonggong education is the first private education enterprise listed on the back door,it is of great theoretical and practical significance for private education enterprises to choose in-depth case analysis.First of all,this paper summarizes the research status of enterprise financing,backdoor listing and education enterprise capitalization at China mainland and abroad,which takes a theory foundation for the research.Next,the representative case of the backdoor listing of China public education as the research object.Through analyzing the scheme of backdoor listing and the motivation of both sides,it concludes the necessity of backdoor listing in the current environment.From the cost and benefit of backdoor,this paper analyzes the impact of backdoor on China public education.In terms of cost,due to the way of asset replacement and issuing directional shares to purchase assets,the backdoor cost is saved to some extent.In terms of benefit,according to the characteristics of for-profit private education,it mainly focuses on market benefit,financial performance,enterprise value and non accounting index benefit In the short term,it brings positive effects to shareholders and improvesfinancial indicators and enterprise value to a certain extent.In addition,this paper digs the problems after the backdoor is completed,including the high performance gambling that will be faced,and the adverse impact on the stock price when the high proportion of restricted shares is lifted.Finally,through the analysis of this backdoor,we also get the enlightenment and suggestions,including various factors that should be considered for private education enterprises to be listed,how to consider the best financing plan,and the supporting policies that may be faced with in the current financing are not implemented in place.Based on the case of the success of the backdoor of Zhonggong education,this paper analyzes the reasons why the backdoor is successful,and the economic and social benefits brought by the backdoor.The conclusion can prove that private education enterprises can meet the financing needs in the capital market.Although the successful listing of this case has been achieved,the specific laws and regulations in some practical operations are not clear enough,and the implementation of the new restructuring rules will also have an impact on the efficiency of supporting financing after listing,and the hope of private education enterprises listing in the future is still relatively slim.This paper also puts forward some views on how to solve the financing problems of such enterprises,hoping to bring them some Reference and thinking.