Special requirements for public offering of preferred shares include:
(1) adopts a fixed dividend yield;
(2) In the case that after-tax profits can be distributed, dividends must be distributed to preferred shareholders;
(3) The balance of dividends not paid to preferred shareholders shall be accumulated to the next fiscal year;
(4) After the preferred shareholders distribute dividends according to the agreed dividend rate, they will no longer participate in the distribution of residual profits together with ordinary shareholders.
What are the special provisions for listed companies to issue preferred shares?
The so-called preferred stock is relative to the common stock, and the shareholders who hold this kind of stock have priority over the common stock shareholders in residual distribution and residual property distribution.
Advantages: The capital raised by preferred shares belongs to equity capital. Disadvantages: the financing cost of preferred stocks is higher than that of bonds. Preferred stock financing is a better way of cooperation with foreign investors, which can meet the requirements of foreign investors for risks and benefits.
1. The public offering of preferred shares by a listed company shall meet one of the following circumstances:
(1) Its common stock is a component of the SSE 50 Index;
(2) Acquisition or merger of other listed companies by public offering of preferred shares as a means of payment;
(3) Where ordinary shares are repurchased for the purpose of reducing the registered capital, the preferred shares may be publicly issued as a means of payment, or after the repurchase plan is implemented, the preferred shares shall be publicly issued not exceeding the total amount of repurchased capital reduction.
2. It has been profitable continuously in the last three fiscal years. Compared with the net profit before deduction, the net profit after deducting non-recurring gains and losses shall be calculated based on the lower.
3. A listed company that publicly issues preferred shares shall stipulate the following items in its articles of association:
(1) adopts a fixed dividend yield;
(2) In the case that after-tax profits can be distributed, dividends must be distributed to preferred shareholders;
(3) The balance of dividends not paid to preferred shareholders shall be accumulated to the next fiscal year;
(4) After the preferred shareholders distribute dividends according to the agreed dividend rate, they will no longer participate in the distribution of residual profits together with ordinary shareholders.
4. If a listed company publicly issues preferred shares, it may give priority to the original shareholders.
5. In the last 36 months, if administrative punishment has been imposed for violating laws, administrative regulations or rules of industry and commerce, taxation, land, environmental protection, customs, etc., if the circumstances are serious, the preferred shares may not be publicly issued.
6. The company and its controlling shareholder or actual controller shall not violate the public commitments made to investors in the recent 12 months.
What are the special requirements for public offering of preferred shares? For this special requirement, it can be roughly divided into four types.