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Learning about knowledge allotment Placement of shares to the original shareholders of listed companies issue new shares to raise funds act. By convention, when the company's allotment of new shares subscription rights in accordance with the existing equity shareholders of the ratio between the original allocation, the original shareholders have preferential subscription rights. The conditions of allotment: (1) The previous issue of shares has been fully subscribed, raising funds with favorable results; (2) listing more than three full fiscal year, the last 3 consecutive years; (3) company in the last three years, no false financial and accounting records or material omission; (4) of this Rights Issue to raise funds, the company forecast a net return on assets should meet or exceed the level of bank deposit interest rates over the same period. (5) shares of restricted common stock placement, placement of objects registration date for the equity of companies registered shareholders; (6) the total number of issued shares of a placement of shares shall not exceed the company's previous shares issued and fully subscribed after the 30% of the total number of its shares, the company will raise funds for the allotment of this key national construction projects, technology projects, it may not be restrictions on the proportion of 30%. When issuing new shares Number of shares held by shareholders in order to maintain price (below market) distribution warrants. Placements is a major characteristic is that the price of new shares issued in accordance with the announcement of the stock when the market price for a certain determined discount processing. The discount price is a bid to encourage shareholders to subscribe. The time when the market environment is unstable, to determine placement of shares price is very difficult. In normal circumstances, the price of new shares issued when the stock market at an issue price of Rights Issue 10% discount to 25%. Theoretical ex price before the announcement of additional shares of stock and issue new shares of the weighted average price, it should be the placing of new shares after the stock price. Placements are not dividend Dividends to shareholders of listed companies the return on investment, which are characterized by: Listed companies are paying, with shareholders who are harvesting, and harvest the shareholders of listed company's operating profits, the dividends of listed companies is built on the basis of operating profit , no profit no dividends can be divided into. Dividends of listed companies usually have two forms, one is to send cash dividend, that a listed company will at some stage (usually one year) part of the profits in cash back to shareholders, which shall be return on investment to shareholders; other is the bonus issue, which will be a cash dividend to shareholders into the capital to expand production in the coming year give to shareholders. The allotment is not built on the basis of profit, as long as the shareholders would rather, if the business has incurred losses of listed companies can also share placements, obtained by listed companies, shareholders are paying those. Shareholders additional investment, joint-stock companies to obtain capital to replenish capital. Although the placement of shares held by the shareholders after the stock has increased, but it is not the company's return on investment to the stock, but the additional investment as a form of evidence. Allotment Option is exercised with, get paid bonus shares, according to a certain percentage of the price to buy a certain stock, that stock should be given more pocket. Allotment diluted, Tianquan or paste right, pay attention to the market atmosphere. In bull market, share placements, the bigger the chance Tianquan, cheap to buy the stock may have greater benefits. If the trend of weakening, appears below the allotment price of diluted shares, then the losses will be. If you can in the market placement of shares with a price lower than the purchase price of the stock, placing will be meaningless. Operate as usual allotment to buy shares, so long as to be in accordance with allotment allotment price and the number, fill in pay can be, no one said allotment warrants. If a stock dividend has another allotment, you can only get dividends, rather than placements, as long as the payment of allotment do not buy, share placements to be abandoned. Rights Issues Frequently Asked Questions Allotment shall be repayable on it? Not. According to relevant provisions exchanges, placements subscription on R +1 date, the subscription period is usually 10 working days (adjustable), such overdue payment processing for waiver of right to allotment, payment can not supplemented. Accordingly, prospective investors should note that allotment of information the newspaper notice, including contributions of time allotment, and timely payment. So as to avoid unnecessary trouble or to avoid unnecessary losses. Placements can be withdrawals of contributions it? According to SSE provisions allow withdrawals that day subscription offer. Placements What payment fee? Investors subscribe for placement of shares without any fee. Placement of shares in the "piecemeal stocks" do? According to the provisions of the Shenzhen Stock Exchange, placement of shares arising from the piecemeal or fragmented stock warrants, sorted by the number of size, number of cycles carry a small number of large shareholders in order to achieve the smallest units in a share account. How can we know the placement of shares is valid? As the subscription is limited allotment of time, over the timing of payments shall not repay the opportunity to cause losses to investors, therefore, whether the allotment is confirmed after the subscription is very important. Shenzhen allotment of funds investors should see the account in cash the next day is less, warrants are being drawn to the; Shanghai stock market placement of shares to investors in the next day, where Print statements broker to determine the subscription is valid. Placing the number of errors input how to do? Investors in the placement of shares subscribed shall, if found to have been commissioned into the exchange list of the host computer is wrong, as commissioned by the number of shares over the subscription limit withdrawals, then you can re-commissioned. Whether the payment by the broker on behalf of the allotment? Can. Many brokers provide such services. But to provide this service brokers, investors generally will sign a "proxy investors go through placement of shares agreement." Have to remind the allotments or payment services. Subscription placement of shares is "buy" or "sell"? The placement of shares in Shenzhen subscription settings the computer system in the exchange, its trading direction for the "buy" commissioned; Shanghai Stock subscription warrants placement of shares traded in the direction of exchange auction declare limits to "sell" order completed. Placement of shares divided into two kinds of paid placement of shares and bonus shares. 1. Paid placements: The company handling the cash capital increase, shareholders may subscribe according to stake money stock. Such placements ex, except that the "new shares subscription rights." 2. Unpaid placements: well-managed company made money, according to allocation of surplus general meeting resolution. The distribution of interest earnings with the Second Law and Rights Issue, with interest free shareholders to receive cash pursuant to equity ratio is generally what we call the ex-dividend. The placement of shares pursuant to equity ratio is shareholders to receive shares free of charge. Both said the free, the shareholders do not have to spend money on subscription. Such placements ex, in addition to the "surplus distribution rights." Involved in placements Notes Placement of shares of listed companies incorporated under development, in accordance with relevant regulations and relevant procedures, the original shareholders, the further issue of new shares to raise funds act. Investors in the Subscription required to read before allotment of listed companies, "placement of shares Manual", know the specific time allotment payment, subscription methods and so on. 1, methods will be the public shareholders can subscribe for the subscription period, with personal identification, shareholders account card, Shanghai Stock Exchange to their designated transaction broker office, managed brokerage office in Shenzhen to report subscription allotment, while capital account to ensure sufficient funds. Investors can personally commissioned by the way, can also be commissioned by phone, a variety of ways such as self-commissioned subscription form and commissioned the same as buying and selling stocks. Investors may subscribe for multiple declarations, each declaration to apply for the total number of subscription rights offering may not exceed its allotment amount. Of course, investors can subscribe to their own decisions whether some or all of the Placing. 2 to calculate the number of Shanghai stock market allotment provision, placing limits the number of shares as of the date of registration the number of shares held multiplied by the ratio will be after the public placement of rounded and less than part of an rounded by rounding. Shenzhen provides that part of allotment no less than an allotment. 3, how to confirm the validity of allotment? As the subscription is limited allotment of time, overdue payment by giving up equity deal with. Therefore, placements are confirmed after the subscription is very important. Placement of shares to investors in the brokerage office the next day print Jiaoge Dan, view the financial account is short of cash, to determine subscription is valid. Here, also reminded investors to participate in placements is best not to catch the last bus, so that if operational errors, no time to remedy. 4 Subscription share placements are "buy" or "sell"? The placement of shares in Shenzhen subscription settings the computer system in the exchange, its trading direction is a "buy"; Shanghai Stock Exchange with shares sold with access to stocks, rather than some investors understand the placement of shares is to pay the money, should to "buy" the wrong idea. In operation, the SSE agency placements lead underwriter in an opening call auction on the allotment price to buy a large number of declarations with equity, and investors scored a "sell" matched pairs. If investors mistakenly knock allotment to declare a "buy" commissioned, SSE directly to the host computer, as is often the time lag in reporting the lead underwriter for a large pay, little chance of natural turnover, even if the placement of shares traded, then declared, wrong direction because of the sale, allotment payment is still a failure, the investor must be on the second day of "reverse operation" means "double sell" commission, payment for proper placement of shares. 5. What is "reverse engineering" and "double sell" commissioned it? Can now give an example to illustrate: an investor to participate in allotment payment, mistakenly hit a "buy" 1,000 shares, if found to be in the second day in time (the period of contributions still allotment) declared "sold the "2000 stock can, misuse of the original" buy "commission to correct to" sell "commission, which is called" reverse operation ", a false statement to the original 1,000 shares allotment to delegate the right to declare the direction of" selling the "2000 stock, which is called" double sell ", if the investor is" reverse operation ", but no" double selling "commission, then allotment payment is still a failure. 6, when the stock market investors, the allocation of payments after making placements, often found in the distribution of shares has yet to arrive, was very anxious. In fact, the allotment was not immediately arrive to. The public shares will be allocated shares traded date, contributions will be the end of the second allotment, the company published a notice of change of shares, by the stock exchange arrangements will be announced.
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