US brokerage William Blair released a study today

The following is the full report:

After the U.S. stock market closed on April 2, worry announced that it would raise $150 million trillion through a private placement of senior convertible bonds, which expires in April 2019. In addition, the initial subscription of the convertible bond will have the right to purchase additional 22.5 million U.S. dollars of convertible bonds. For the purpose of this fund, worry the relative standard in the news bulletin, for example, for general business purposes, including the required working capital, and possible acquisitions for supplementary operations. Similar to the usual issuance of convertible bonds, the company will use some of the proceeds to hedge, easing the dilution effect of the deal on shareholders. It is difficult to calculate the exact impact of a transaction until the price of the convertible bond is determined in the next few days.

We believe that the deal suggests that the worry is likely to give back cash to holders of US depository Receipts (ADR) through dividends, or possibly a certain scale of acquisitions, to expand the current solution. The view is that worry wants to test the water capital market before rival Zhaopin's IPO, later this year. Given that the company's management and the Japanese recruit hold nearly 70% per cent of worry, more liquidity injections will bring long-term benefits.

However, we suspect that if the proper use of this capital is not found, the share of management will be diluted. By the end of 2013, worry held more than 520 million dollars in cash and short-term investments, accounting for 1/4 of the company's total market value. Worry also gained a higher free cash flow, more than 100 million dollars in 2013 years. We believe that a large portion of worry's cash is outside the United States (mostly in China) and therefore cannot be used in the United States. The issuance of the convertible bonds is in dollars and is located in the United States, so it can be used for dividends issued in US dollars. In addition, worry may also be considering a bigger takeover.

Although we do not know the conversion of the convertible clause, but we believe that investors will take a positive view of the issue of the convertible bond. The cash held by worry has grown dramatically over the past few years, so we think it would be right to use that capital or give it back to shareholders.