Research On The Motivation And Value Creation Of Spin-off Listing

Spin-off and listing is one of shrinkage asset reorganization methods,which has been widely concerned in the capital market in recent years.With the boom of spin-off listing,the research on spin-off listing has been accumulating and innovating.The official establishment of our science and technology innovation board has brought convenient platform and encouraging policies for spin-off and listing.Many domestic companies hope to use spin-off and listing to carry out asset reorganization,in order to broaden financing channels,professional management,and improve the value of the company.But in our country,the spin-off listing started relatively late.The requirements of capital market on the spin-off listing are relatively strict.Therefore,most of domestic spin-off successful cases are listed overseas,so few choose domestic spin-off cases.In 2021,as the first successful spin-off and listing company in China,Shengyi Technology listed its subsidiary Shengyi Electronics on the Science and Technology Innovation Board,ushering in a new stage of development of Shengyi Technology.In this paper,the classic case of Shengyi Technology is selected to study.Firstly,the literature research method is selected to comb the literature related to spin-off and listing at home and abroad to form a theoretical framework.Secondly,the motivation of spin-off and listing of Shengyi Technology is analyzed,and the purpose of spin-off and listing of Shengyi Technology is analyzed from the external environment and internal orientation.Secondly,it analyzes the path of value creation from the perspective of financing,governance and operation effect,and finally evaluates the realization of value.The conclusion of this paper is that the motivation for Shengyi Technology to split Shengyi Electronics is the fierce competition in PCB industry,the support of industry policies and spin-off system,the expansion of financing channels and the acquisition of reasonable valuation.After the spin-off and listing,Shengyi Technology has a higher excess cumulative earnings and the company’s market value increases,but Shengyi Electronics does not get a value increase.In terms of financial performance,the parent-subsidiary company has a short-term improvement and the subsequent performance is not good.Finally,based on the existing conclusions,the paper puts forward some suggestions for spin-off listing,hoping to provide experience for other listed companies to spin-off listing.