The withdrawal of the enterprise, or target the adjacent a-shares or H-share market

Absrtact: After the privatization wave of the Chinese stock market, the delisting enterprises are aiming at the neighboring a-shares or H-share markets. Two days ago, the Hong Kong-China technology (ie, 01297.HK), which was listed on the HKEx, was the path. As the first successful landing in London, England

After the "privatization" wave of the Chinese stock market, the delisting enterprises may aim at the neighboring or h-share markets. Two days ago, the Hong Kong-China technology (ie, 01297.HK), which was listed on the HKEx, was the path.

As the first Chinese software company to succeed in the London AIM market, the London-Sky Technology (the main company that has been listed in the UK) was privatized in 2010 and, after more than two years dormant, once again told the Hong Kong capital market The story of "Export drawback software".

Can you copy this path for other software companies that have retired overseas?

"After the exit, not all companies will choose to restart the market." "Cao Kaibin, CEO of China Software Outsourcing network, said in an interview with the first financial daily, whether the IPO and where IPOs are more related to the pace of corporate development, and the recent privatization of software outsourcing companies, in the short term it is difficult to restart the IPO. But he also said that the Qing-day technology landing in Hong Kong, the entire Chinese software industry is also a positive.

Market capitalisation shrinks, low-key retreat

When he landed aim in 2006, Chi-day technology told the capital market the concept of China's first export drawback software supplier.

The London-day software opening was 50 pence per share (about £ 0.21), with a public offering of just 3 days, with several times oversubscribed and a very easy raise of 17 million dollars. European big-name funds have thrown hydrangea, Genesis fund company even once bought 8.65 million shares. A week later, the price per share rose to 72 pence (about 0.3 pounds), worth about 75 million dollars.

Compared with the "AIM First China software Unit" in the market, the London software retreat is quite low-key, even in the domestic unknown. The current purchase offer was found to have been bought back at a price of 8 pence (about £ 0.03) per share, to about 26.7% of the issued shares by December 1, 2010. Two days later (December 3, 2010), the London software is to remove the cards from aim.

"The company considers its valuation and volume of transactions not reflected in its actual value in providing shares in executive and enterprise application software companies in China," the board said. "This is the most important reason for removing the cards," said the company. The price per share is "evaporating" by nearly 80% compared with the opening price, which is about $7.357 million when it is in addition to the exchange rate at the date of completion of the repo offer, and during the peak period, Xin Yingmei, chairman of Technology, said that the market value had reached $125 million.

It is worth noting that it costs about $650,000 a year for the aim to remain listed. And as a focus on the domestic market companies, technology hopes that after the return of the city can be more focused on Chinese business operations.

In addition, the technology also said that apart from the card can reduce the loss of foreign exchange transactions to the minimum: since the net amount of initial public offering has not been remitted to the mainland, the London Sky Software has opted to conduct foreign exchange transactions with a financial institution in an attempt to reduce the risk of foreign exchange. Although 2008, 2009 profit 3.06 million Yuan and 8.06 million yuan respectively, but in 2010 years loss of 3.19 million yuan.

"Valuation is too low is the root cause of technology, reduce the risk of foreign exchange is somewhat far-fetched." "A software company close to technology said to the Reporter: After 2008, due to the impact of the financial crisis, the British AIM market has emerged a" retreat ", many undervalued Chinese companies choose to retire from aim, and technology is only one of them.

In his view, the aim retreat was very similar to the recent unwinding of the "medium-to-share" trend in the US trading market. After the withdrawal, most companies will choose a better time to restart the IPO, but this time the eyes will be familiar with the A-share or H-shares market.

Introduce Ali to increase chips

After the withdrawal of the city, the technology immediately began the next January restructuring.

The most striking part of the restructuring process was the introduction of "giant" Alibaba. January 26, 2011, Alibaba through its subsidiaries Alibaba Investment Company, formally to the technology of the strategic investment, the former with about 170 million yuan to buy the latter 25% equity. It was disclosed that the acquisition was priced at about 20 times times the estimated P/E ratio (PE) in 2011.

A Ali group of senior executives to reporters confirmed: technology development software and Alibaba's business has synergy, the relevant acquisition is conducive to Alibaba add value-added services, expand revenue channels. With the help of Alibaba's operation and business network, the technology can also sell products to more potential customers, breakthrough geographical restrictions, and further cover the scope of business to other provinces.

According to the people said, before the stake, Alibaba has carried out 5 acquisitions, respectively, involving a Shenzhen, Ali Software, China million network of American E-commerce company Vendio and Auctiva. and have to withdraw the city of the will of the technology "Wenfengerdong", as early as December 10, 2010, technology management of the company with Alibaba high-level contact, explore the possibility of cooperation.

Public information shows that the technology in Hong Kong listed on the exchange, Alibaba as its strategic shareholders, the IPO will still hold 13.75%. Some people in the industry even read as follows: The technology in H-shares listed, is Alibaba IPO "outpost."

With the support of the Giants, the Hong Kong IPO scheme has been a market concern, with a plan to finance about $60 million trillion. However, its first day on the main board listing, although the opening price of HK $1.49, closing close of HK $1.4, compared with the IPO price of HK $1.45 slightly lower.

"Alibaba's strategic investment has increased its IPO chips, but its IPO is still the story of export drawback software suppliers." "IBM senior strategic analyst Wang Yu that in the 2012 's revenue composition, from E-government solutions, information integration software, systems integration solutions in three areas of revenue, has exceeded the export tax rebates and solutions."

In fact, the technology is based on foreign trade exports, providing free application platform business support, in exchange for a large number of customer resources. On this basis, to provide customers with customized business consulting, expand the scope of business, the formation of deep business cooperation, to foreign trade as a breakthrough point, expand the depth of product lines, to provide foreign trade as the core of government affairs, to achieve business upstream and downstream resources integration.

On the other hand, at present, 80% of the revenue from the technology of Jiangsu Province, in the future or through acquisition of offline services and government resources, to break through a single geographical constraints. According to the Ipsos report, China in 2012 about 26,202 software companies, in 2008, about 20,719, the cumulative increase of about 26.5%. (Note: Ipsos compiled China's 2011 Chinese software companies, said the Ministry of Industry and Information technology only the annual income of more than 5 million software companies to calculate) Wang that the domestic software industry mergers and acquisitions in recent years will emerge.