GEM company's small rating increase implicit merger and acquisition opportunities

In May 2014, the CSRC launched a small-scale rapid private placement mechanism for the GEM, whose main content is a small increase of “no more than 50 million yuan each time and no more than 10% of the company’s net assets”, which can be sold independently. The CSRC will make a decision on whether to approve or not within 15 working days after acceptance.

According to the reporter's incomplete statistics, as of yesterday, 13 GEM companies have adopted a small amount of rapid growth. Among them, nine companies re-launched mergers and acquisitions and other activities after the release of the plan, and three companies have suspended their plans to plan major issues. From the performance of the secondary market, the announcement of the above-mentioned company's plan for the increase of the plan is the time when the company's share price is at a low point, and then almost all rises. The average increase of the 13 companies after the announcement is about 40%, which is the same as the GEM index.

An increase in the number of flowers given their own <br> <br> must not let outsiders fields. According to statistics from the reporters, the above-mentioned companies that announced small-scale rapid increase plans have decided to spend most of their plans on their own.

In May last year, the “Interim Measures for the Administration of Securities Issuance of GEM Listed Companies” was officially implemented. Its unique simple issuance regulations were introduced: first, setting succinct and uniform issuance conditions, strengthening the restraint mechanism for refinancing; second, launching “small amount” If the application for non-public offering of stock financing does not exceed 50 million yuan and does not exceed 10% of the net assets at the end of the most recent year, the summary procedure shall apply. The CSRC shall approve or not within 15 working days from the date of acceptance. The approval decision; the third is to support listed companies to sell non-publicly issued shares in a specific scope, reducing financing costs.

It is understood that the issue of small-scale rapid financing is limited to the following five categories: the former top 10 shareholders of the listed company, the controlling shareholder of the listed company, the actual controller or the related party controlled by it, the listed company’s director Dong Gao or the employee, and the board of directors Domestic and foreign strategic investors or other issue targets that have been identified, as well as other circumstances identified by the CSRC. It is worth mentioning that if a listed company is placed to the major shareholder, the top 10 shareholders, and the director of the board of directors, it can sell independently and no longer employs sponsors and lead underwriters.

The new policy of refinancing the GEM has ignited the enthusiasm of the GEM companies. According to the reporter's incomplete statistics, 21 companies in the GEM released a fixed plan in 2013. In 2014, 109 GEM companies issued 111 announcements. Among them, 13 companies have initiated small-scale rapid financing and fixed plans.

The 13 companies that started the small-scale rapid increase plan were: Yinhao Technology, Zhouming Technology, etc.

The reporter noted that the major shareholder became the main force to subscribe for small-rated shares, and the company's senior management and employees, most of the small-rated shares increased their own. Statistics show that the major shareholders of six companies are self-sufficient, namely Sanju Environmental Protection, Furui Shares, Yinhao Technology, Huawu Shares, Amway Shares, and Lianchuang Energy Saving. The issuers of Chau Ming Technology and Te Rui De respectively locked in the company's executives and company employees; Rotary Information, Dangsheng Technology and Yaben Chemical, and adopted the fundraising methods of the top 10 shareholders; Two companies, Gao Ke and Mei Ansen, have increased to third-party organizations.

Some analysts believe that in the small-scale rapid financing of GEM listed companies, the major shareholder cash subscription shares can release positive signals in the secondary market. At the same time, the small-scale rapid financing procedure is simple and the certainty is relatively high, and the institution can obtain the shares of the listed company at a reasonable price.

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