The first spin off listed shares will be born in 2022. According to the statistics of the reporter of Securities Daily, in 2021, 8 listed companies were listed by spin off subsidiaries, of which 7 were listed on the science and innovation board and 1 was listed on the gem. At present, Deshi shares are being issued and are expected to become the first spin off listed shares in 2022.
Data show that last year, 51 listed companies issued spin off plans or spin off intention announcements, of which 6 companies terminated the spin off; 17 subsidiaries planned to be split and listed on the gem, 6 planned to be listed on the science and innovation board, 2 planned to be listed on the main board, 2 planned to be listed on the Beijing stock exchange, 4 planned to be listed abroad, and the other 14 did not disclose specific sectors.
Pan Helin, executive director of the Digital Economy Research Institute of Central South University of economics and law, told the Securities Daily that for listed companies, the purpose of spin off and listing is, on the one hand, to make the company’s main business more clear, and each subsidiary can focus on one business, so as to realize focused development; On the other hand, it is to enlarge the valuation.
On January 7 this year, the rules for the spin off of listed companies (for Trial Implementation) issued by the CSRC unified the regulatory requirements for the spin off at home and abroad, and clarified and improved the spin off conditions. In view of the problems reflected by the market, clarify the method and starting period of “the subsidiaries to be spun off use the raised funds in the last three fiscal years”, the calculation standard of “the total use of the raised funds in the last three fiscal years does not exceed 10% of their net assets”, and the recognition basis for directors and senior executives to hold no more than a certain number of shares of the subsidiaries to be spun off. In addition, in order to promote the listed company to focus on the development of its original main business and further clarify that if the main business or assets of a subsidiary belong to the main business or assets of the listed company at the time of IPO and listing, the subsidiary will not be listed.
“The rules specify a series of situations in which subsidiaries are not split for listing, so as to prevent listed companies from splitting their core main business and affecting the interests of investors.” Zheng Nan, a senior investment consultant of Jufeng investment consulting, told the Securities Daily that after the introduction of this rule, more companies will spin off their subsidiaries for listing, making the parent company more focused on its main business, which is conducive to the long-term growth of the parent company’s market value.
Pan Helin believes that the purpose of clarifying and improving the spin off conditions by the CSRC is to curb the blind spin off financing of listed companies driven by market value. The spin off financing should start from the business rather than aiming at bigger valuation. By limiting the conditions of spin off listing, we can curb the impulse of spin off listing of some enterprises, so as to protect the interests of investors.
The reporter noted that two listed companies, including Nanjing Iron & Steel Co.Ltd(600282) , Shenzhen Woer Heat-Shrinkable Material Co.Ltd(002130) , have announced plans to spin off their subsidiaries and list on the Beijing stock exchange. In addition, a number of listed companies responded on the investor interaction platform that they would continue to pay attention to the relevant policies of the Beijing stock exchange and plan relevant work.
Zhou Yunnan, founder of Beijing Nanshan investment, told the Securities Daily that with the continuous development and growth of the Beijing stock exchange and the continuous improvement of its financing, pricing, trading and M & A functions, more and more listed companies will focus on the Beijing stock exchange, be willing to split their subsidiaries to the new third board for listing and enter the innovation layer, and choose the opportunity to apply for listing on the Beijing stock exchange, This can not only transport more high-quality enterprises for the new third board, but also realize the effective interconnection between Shanghai and Shenzhen listed companies, the new third board and the Beijing stock exchange.
Zheng Nan said that many leading enterprises can use the new rules to spin off the company’s scientific and technological innovation business, take the east wind of “specialization and innovation” and catch the policy express of the Beijing stock exchange to realize the harmonious development of the parent company and subsidiaries.
(source: Securities Daily)
