A Case Study Of WuXi AppTec's Privatization Returns

Along with our country to accelerate the pace of economic development,enterprise listed financing demand,but because our country capital market started late,the barriers to entry,audit process,the respect such as financing program requirements are too high,so many Chinese companies listed in China chooses to overseas capital market,the enterprise investors called China Concept Stock.Gradually thawed in recent years,the domestic economy,the capital market in all kinds of economic policy has been improved,return to a-share market,not only easier to expand will share in the enterprise the management activities,improve enterprise's popularity and influence,can also get higher valuations,so more and more China Concept Stocks return of private enterprises on the road.WuXi AppTec was successfully listed on the Shanghai stock exchange in May 2018,becoming the first Chinese concept stock to return to the a-share main board in the form of IPO,which is of landmark significance.This paper uses the methods of literature analysis,case analysis and comparative analysis to analyze the development process and returning situation of China Concept Stock.Taking WuXi AppTec as the object of case analysis,the paper studies its regression motivation and path,and finally summarizes the successful experience of WuXi AppTec's regression and its enlightenment and suggestions to other China Concept Stocks.Through the analysis of the case of WuXi AppTec's privatization,it is concluded that the process of WuXi AppTec's privatization can be divided into four steps:preparation before privatization,including breaking up macromolecule business and promoting the listing of the whole pharmaceutical industry,privatization delisting,promoting the listing of WuXi AppTec and returning the main body to A-share.Through this privatization return,WuXi AppTec's overall market value and the proportion of founder's shares are relatively returned.There was a significant improvement before returning.Secondly,the article explores the motives and modelsof WuXi AppTec's privatization return.The motives of return include undervalued value,unrecognized prospect,adjustment of strategic layout and domestic policy orientation.Compared with the traditional return path of Chinese concept stock,WuXi AppTec's split-listing path has its own characteristics,and the split-listing also brings WuXi AppTec advantages to focus on the main business,expand financing channels,and enterprise value being valued.Finally,based on the above research,the successful experience of WuXi AppTec's return lies in reasonable financing through split listing,continuous innovation,improvement of core competitiveness and compliance with the IPO issue price rules.Suggestions are put forward for other prospective companies waiting for return,including rational choice of return,strengthening risk management,and rational planning of development after return.