Nearly 30 Listed Companies Disclose "A Split A" Plan, Why Spin Off Listing Is Popular
2023-09-14
Listed company Zhengtai Electric recently announced that its subsidiary Zhengtai Anneng's IPO application for the main board has been accepted by the Shanghai Stock Exchange. Since the beginning of this year, the popularity of A-share split listing has not decreased. Seven listed companies, including Youche Technology, Tianma Intelligent Holdings, and Xigaoyuan, have achieved independent listing through the split. Experts say that listed companies choose to spin off their subsidiaries for listing mainly to streamline their business structure, expand financing channels, obtain reasonable valuations, and enhance overall competitiveness. At present, the spin off listing mainly focuses on popular emerging tracks, which is conducive to better serving technological innovation and high-quality economic development. In the future, the capital market is expected to welcome more "A to A" cases. Since the beginning of this year, the spin off and listing camp has continued to expand, focusing on popular emerging tracks. According to incomplete statistics by reporters, as of now, nearly 30 listed companies have disclosed their plans for spin off listing during the year, and 7 spin off subsidiaries have achieved independent IPO listings. From the industry attributes of spin off listed companies, they are mostly strategic emerging industries, mainly distributed in high-end equipment manufacturing, pharmaceutical and biological industries, which also echoes the concentration of spin off listings on the ChiNext and Science and Technology Innovation Board. When it comes to the purpose of spin off and listing, multiple companies have stated that they mainly aim to enhance their core competitiveness, expand financing channels, and optimize their business structure. For example, on August 11th, Shenzhen Gas announced that the company plans to spin off its controlling subsidiary, Swick, to be listed on the Growth Enterprise Market. Through this spin off, Swick will further expand financing channels, enhance its financial strength, quickly enhance its brand effect and reputation, and thus enhance its comprehensive competitiveness. Through the spinoff listing, subsidiaries have achieved direct integration with the capital market, which can raise funds for the development of enterprises, improve the situation of insufficient own funds, and enhance their development potential. "Wan Lian Securities analyst Yu Tianxu believes that listed companies that implement the spinoff listing generally have a dual or even multiple main business operating structure. After the spinoff is completed, it helps listed companies focus on their existing advantageous main businesses and further refine and strengthen their main businesses. In order to meet the needs of enterprises and market development, regulatory authorities have continuously improved the standards for spin off and listing in recent years. In December 2019, the China Securities Regulatory Commission issued the "Several Provisions on the Pilot Domestic Listing of Subsidiaries under the Split of Listed Companies", officially opening the A-share domestic split listing channel; In January 2022, the China Securities Regulatory Commission (CSRC) announced the "Rules for the Split of Listed Companies (Trial)", providing clear guidance for domestic splits of listed companies, and the A-share split listing continues to heat up. As an important breakthrough in China's capital market reform in recent years, the spin off listing has provided new ideas for the industrial expansion of listed companies and more investment opportunities for investors, "said Tian Lihui, Vice President of Guangxi University and Dean of the Financial Development Research Institute of Nankai University. Recently, China Unicom announced at a performance briefing that the plan to spin off its subsidiaries for listing on the Science and Technology Innovation Board has been approved by the shareholders' meeting. The pace of state-owned enterprises splitting off their subsidiaries and going public is accelerating. According to preliminary statistics by reporters, since the implementation of the relevant rules for split listing in 2019, more than 100 A-share listed companies have issued relevant announcements, of which about half are state-owned enterprises. Industry insiders
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：economic daily
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