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Zhejiang Senma Co., Ltd. - Clothing Ipo

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Senma clothing "IPO" three high case analysis

First, the reason for the topic

Since the reform of the new share issuance in 2009, the three-high IPO phenomenon has been a difficult problem in the supervision of the securities market. The “three highs” phenomenon refers to: high pricing, high price-earnings ratio, and high-paying. According to the statistics of Wind database, from June 2009 to September 2010, the IPO issuance price, the price-to-earnings ratio and the over-raised funds of China's main board, small and medium-sized board and GEM market showed a “stepped” upward trend. The average IPO of IPO of 128 companies on the GEM is 66 times, the over-raised funds are 57.398 billion yuan, and the over-raised ratio is 210%. The average IP-to-earnings ratio of IPOs of 211 companies in small and medium-sized enterprises is 51 times, and the over-raised funds are 102.102 billion yuan. 140%. Although the government has been working to reduce or eliminate the “three highs” phenomenon, the 22 companies that completed the reform from November to mid-December have not seen good results. The average price of new shares is 30.30 yuan, and the price-earnings ratio is 67.40. Times, the funds raised were 33.858 billion yuan, and the excess amount reached 124%. Before and after the comparison, the three-high phenomenon has not been significantly improved, and even more and more intense. This article is a case study paper, select the case of Senma apparel IPO, which is the listed company with the highest IPO price and the most over-raised IPO in the first half of 2011. Its issue price is 67 yuan, it is estimated that the raised funds will be 2.056 billion yuan, the actual raised funds will be 4.69 billion yuan, and the over-raised funds will reach 2.734 billion yuan. The purpose of this paper is to analyze the reasons for its existence, and put forward relevant suggestions from the system, issuer and regulatory agencies, to provide some reference for the improvement of the future new share issuance system, and to provide reference for investors' investment choice.

Second, the company introduction

Zhejiang Senma Co., Ltd. is a brand clothing company, which is mainly engaged in the business of adult casual clothing and children's clothing. The company holds two major clothing brands, namely “Senma” and “Balaba”. “Senma” is one of the most important clothing brands in China. It has a leading position in the leisure apparel industry. It was established in 1996 and has won many honors, such as China's well-known trademarks and national inspection-free products. Its “Balaba” was founded in 2002 and has won the advantage of the children's clothing brand. It is also one of the first brands to be listed on the brand list of children's wear brands. In the business model, Senma adopts a virtual production strategy. In the horizontal development, the Pearl River Delta, the Yangtze River Delta and 160 manufacturers in Shandong and Hubei have been integrated. In the depth development, the garment industry chain has been vertically integrated to make the supply chain system more efficient and responsive. In terms of marketing methods, the advocacy terminal is the best brand communication channel, expanding sales outlets, and has formed strategic partnerships with many institutions at home and abroad. In product

In terms of brand awareness, the combination of McKinsey has enhanced the brand's influence in many aspects, such as product reputation, consumers, visual effects, and external image.

    In March 2011, the first price of Senma clothing hit a new high of 67 yuan/share. The price-earnings ratio disclosed in the Prospectus was 44.97 times (after issue) and 40.12 times (before issue), and the share capital before and after the issue was 600 million respectively. Shares, 670 million shares. According to the estimated 670 million shares after the issuance, its market value is 44.89 billion yuan, which is ahead of the US$3,842 million and Youngor's 2,057 million, occupying the top of the apparel industry. However, the first break of the listing broke, falling 7.3, after which the stock price of Senma apparel began to decline gradually. According to the financial statements, the net profit for the year after the listing of Senma apparel was 761 million yuan, which was 37.78% lower than the 1.23 billion yuan in the year of listing. In 2013, Senma Apparel acquired the high-priced M&A in the company with its high-end fundraising plan, but ultimately failed.

Third, Senma clothing before the listing of equity structure

    At the beginning of 2007, the registered capital of Senma Clothing was 7 million yuan. Senma Group and Qiu Jianqiang are the two majors.

Shareholders, the shareholding ratio of each share is 57.14% and 42.86%, and Qiu Jianqiang also holds 15% of the Senma Group.


In March 2007, the Senma Children's Wear General Meeting decided to increase the registered capital by 26 million, resulting in an increase of the original registered capital of 7 million yuan to 33 million yuan. Among them, the Group's contribution increased by 18.44 million yuan, Qiu Jianqiang's contribution increased by 2.61 million yuan, Senma Investment is a new shareholder, and invested 4.95 million yuan in monetary funds. After the capital increase, the shareholding structure has changed. The shareholding ratio of the Senma Group has increased, accounting for 68% of the shares, while Qiu Jianqiang has dropped from the previous 42.46% to 17%, and Senma Investment holds a 15% stake.

In June 2007, the audited net assets of March 2007 were RMB 59,874,700. Based on this, the company’s share capital was converted according to the ratio of 1.0148:1, with a total of 59 million shares. 87.47 million yuan is included in the capital reserve of the enterprise. In 2008, the second shareholder meeting decided to add another 129 million yuan on the basis of the original registered capital of 59 million yuan. So far, the registered capital has reached 188 million yuan, and several new shareholders have been added, such as Qiu Guanghe, Zhou Pingfan, Qiu Yanfang. Wait. After the capital increase, the proportions of Qiu Jianqiang and Senma Investment decreased. Among them, Qiu Jianqiang only held 5.3% of the shares, and Senma Investment held 10% of the shares. The share of the Semir Group has increased and it holds 70% of the shares.

    In December 2009, 14 times, the company's registered capital of the company increased by 412 million yuan, from 188 million yuan to 600 million yuan. The share capital structure



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