To put it simply, the fixed increase of listed companies means that listed companies issue additional shares to several local tyrants or local tyrants. These local tyrants give money to listed companies, and listed companies reward local tyrants with newly issued shares.
The announcement names of listed companies generally do not have the words "fixed increase" or "private placement", but use the expression "non-public offering". The corresponding meaning of "non-public offering" is "private placement", that is, only a certain number of people can participate. In addition, it is a new share issue, not an old shareholder's share transfer, so the money raised by the fixed increase is put into the account of the listed company for its use.
The process of private placement
The general process of private placement (that is, non-public offering of shares) is:
1. preparatory plan for non-public offering of shares (preparatory stage)
2. Analyze the feasibility of using the raised funds, and discuss and analyze the impact of this issuance on the company (preparatory stage).
3. Resolutions deliberated by the Board of Directors, the Board of Supervisors and the General Meeting of Shareholders (deliberation stage)
4. Audit by China Securities Regulatory Commission (audit stage)
5. According to whether the object is determined, it can be divided into the execution of share subscription contract and competitive issuance (issuance stage).
6. Received raised funds (issuance stage)
7. Registration and custody of new shares (issuance stage)
8. Distribution of filing materials (distribution stage)