In the long run, the spin-off listing can effectively use the capital brought by the secondary financing, improve the corporate governance after the spin-off, and thus improve the performance of the parent company. On the one hand,
Split listing is actually the second financing of the same asset. If the spin-off listing is highly valued, the parent company's spin-off subsidiary listing will raise more funds. The spin-off of listed subsidiaries can improve profitability and growth through the effective use of raised funds, and the parent company will also share substantial performance growth; On the other hand, the division of subsidiaries
Dismantling is helpful for the management of parent company and subsidiary company to formulate clearer business development strategy and form a more effective principal-agent mechanism. Closer interest relationship between subsidiary management and listed companies will give management more motivation to improve the profitability of the company.
However, it is worth noting that the uncertain stock risk existing in the listing of spin-off subsidiaries may harm the interests of shareholders of the parent company. These risks include the lack of innovation and high growth of the spin-off subsidiary, or management mistakes.
(2) The impact of stock valuation. In the medium and long term, the revaluation of the spin-off listed subsidiaries will enhance the overall valuation of the parent company. Before the split listing, the parent company was a listed company with diversified business, and the market mostly used the valuation side of division and sum.
Law. The valuation level of subsidiaries or businesses is often compared with listed companies of the same type and size, or based on the industry average valuation. Considering the low liquidity of subsidiaries before listing, this conservative valuation method is often discounted. After the spin-off and listing, the liquidity of equity is improved, and the market usually gives the spin-off company a higher valuation level, thus pushing up the valuation of the parent company.
Extended data
There are mainly such aspects:
First of all, whether the stock price goes up or down has a great influence on the market image and reputation of enterprises. You know, once the stock price keeps falling, investors will know what happened to the enterprise and why the stock price keeps falling. Transmission to the market may affect the market reputation, market image and market recognition of enterprises and their products.
Perhaps, consumers will lose trust in the products produced by enterprises, which will eventually affect the normal production and operation of enterprises. On the contrary, if the stock price continues to rise, even if the increase is not large, it means that the production and operation of the enterprise are normal, and investors will have a high degree of trust in the enterprise, which will be transmitted to consumers and form a virtuous circle.
Second, whether the stock price goes up or down has a great influence on the pledge of enterprises. Under normal circumstances, enterprises will pledge their own shares and then get more funds in the market. The stock price is high, of course, the value of pledge is high, and the amount of pledged funds is large. On the contrary, there will be less.
Therefore, if the stock price can continue to rise, the market value of enterprises will become larger and larger, the value of stock pledge will become higher and higher, and more and more new funds will be brought to enterprises. For enterprises, of course, I hope that the stock price will continue to rise. The rise and fall of stock prices will have an impact on enterprises.
Third, the rise and fall of stock price is very important to the security of pledge. After an enterprise's stock is pledged as a loan, under normal circumstances, a loan amount is granted according to a certain proportion of the market value. In other words, if the stock price can rise steadily, the security of the loan will be strong.
On the other hand, if it continues to fall, it may touch the safety line, so that the market value of pledged stocks can not reach the loan amount, thus posing risks. In this case, the enterprise will increase the mortgage or pledge. Obviously, it is not good for enterprises, and the impact of falling stock prices has also emerged.