A Research On The Financial Effect Of The Directed Issue Of Will Semiconductor Co.

In 2020,the China Securities Regulatory Commission(CSRC)issued the "Measures for the Administration of Securities Issuance by Listed Companies(Revised)",which once again set out new requirements for the details of directed issuance since 2006,when it first clarified the relevant regulations for directed issuance.Since its emergence,the issue has been favoured by listed companies for its unique advantages,and once became a mainstream refinancing method in the capital market.The revised scheme introduced by the CSRC now encourages listed companies to absorb high-quality assets through various means,making the fever for the issue of targeted issuance remain high.The semiconductor industry is a typical technology-intensive,talent-intensive,capital-intensive type of industry,so through a variety of financing methods to obtain advanced technology in the industry,to seize the main market,etc.is the semiconductor companies to strengthen their own,expand the scale of operation of the best means.China’s semiconductor industry is at the forefront of all industries in terms of the number and amount of targeted issuance,and Weir has become a leading company in China’s semiconductor industry by having the world’s leading image sensor research and development capability through targeted issuance,which is a case study of targeted issuance.Based on the above background,this paper takes Weir’s directed issue as a case study,and firstly introduces the background and significance of this paper.The case study section begins in Chapter 3 with a brief introduction to the basic industry situation of the case company,followed by an analysis of the motivation for the targeted issuance of Weir,and the process of the targeted issuance.Under the guidance of the motivation,this paper analyses the financial effect of the targeted issue in terms of financial capacity,value creation and financial quality of the case company before and after the targeted issue,and summarises the realisation path of the financial effect.Overall,the effect of this directed issue was relatively good,although there were many twists and turns since the release of the pre-proposal,but from the results,the motivation of the directed issue of Weir shares were basically achieved,not only to achieve the expected business structure transformation and strategic transformation,and to obtain advanced research and development technology and production technology,from the semiconductor distribution business accounted for most of the operating income of the company to the industry leader with leading technology,and among the leading players in the semiconductor industry.The analysis of the financial indicators shows that the directional issue has led to a significant improvement in the financial capacity of Weir,and even though there are some indicators that are problematic,the overall financial effect appears to be positive.The analysis of financial quality shows that the quality of cash flow and the quality of profit have been improved to some extent,and the debt structure has also improved.Analysis of the enterprise value of Weir’s shares using EVA value assessment shows that the directed issue has had a positive impact on Weir’s shares,with rising economic value added and significant financial synergies.At the same time,the paper also identifies some problems in the directed issue,such as a high issue fee rate and the existence of a goodwill valuation bubble.Finally,it is hoped that by studying the successful case of Weir’s directed issuance in the semiconductor industry,the analysis of the process and results of its directed issuance to acquire high-quality assets can provide reference for regulators to improve the system of directed issuance of listed companies and help China’s listed companies to develop their financing in a more scientific and reasonable direction;it is also hoped that this paper’s study of the financial effects of Weir’s directed issuance can It is also hoped that the study of the financial effects of the directed issue of Weir shares in this paper can provide reference for other companies in the same industry in choosing equity financing methods and contribute to the relevant regulatory bodies in improving the system of directed issue of listed companies,so as to promote China’s capital market towards a more scientific,perfect and regulated direction.