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After the private placement landing, the stock price of listed companies often appears sharply, because the private placement has the following positive significance:
1. The implementation of the private placement shows that the performance and development prospects of the listed company have been recognized by investors and enhanced market confidence.
Private placement is a non-public offering of specific investors who have been carefully selected, who usually have a high level of professionalism and market sensitivity, and who have an in-depth understanding and judgment of the performance and development prospects of listed companies.
The private placement is also determined through negotiation between the two parties, reflecting the intrinsic value and growth potential of the listed company. Therefore, the private placement means that the listed company has been recognized and supported by these investors, indicating that the listed company has good operating conditions and development prospects, enhancing the market's confidence and expectations for the listed company, and promoting the stock price.
2. The landing of private placement means that the listed company is about to obtain a large amount of funds, which can be used to expand production, optimize structure, mergers and acquisitions, etc., and enhance the company's competitiveness and profitability.
The funds of the fixed increase will generally be used for the following aspects:
1. Expand production: Listed companies can use the funds of the fixed increase to increase production equipment, expand the scale of production, improve production efficiency, meet market demand, and increase income;
2. Optimize the structure: listed companies can use the fixed increase funds to optimize the product structure, improve product quality, increase product added value, and improve profit margins;
3. M&A and reorganization: Listed companies can use the funds of the fixed increase to carry out M&A and reorganization, integrate resources, expand the market, achieve industrial upgrading, and enhance core competitiveness;
4. R&D innovation: Listed companies can use the fixed increase funds to increase R&D investment, launch new products, new technologies and new models, enhance innovation capabilities, and seize market opportunities.
3. The implementation of private placement will lead to the expansion of the share capital of listed companies, reduce the earnings per share and price-earnings ratio, and enhance the investment value.
The lower the P/E ratio, the higher the investment value, the lower the valuation level, and the greater the space. Therefore, after the private placement is implemented, the listed company will become more attractive, easier to attract investors' attention and purchases, and promote the stock price.
4. After the private placement is landed, the directional issuance object usually has a lock-in period, which reduces the circulating share capital of the market and increases the scarcity and premium space.
Private placement is a non-public offering, the object of private placement is a specific investor, and the private placement usually has a certain lock-in period, that is, the private placement object cannot be transferred or sold within a certain period of time.
The purpose of the lock-up period is to protect the interests of the listed company and prevent the target of the directional issuance from cashing out in the short term and affecting the stock price of the listed company. The effect of the lock-up period is to reduce the outstanding share capital of the market, increasing the scarcity and premium space of **.
Tradable share capital refers to the amount of tradable shares that can be freely traded in the market, the less tradable share capital, the less the supply, the greater the demand, and the higher the demand. Therefore, after the private placement is implemented, the ** of listed companies will become more scarce and more valuable, which is easier to trigger the rush of the market and promote the stock price.