On the morning of April 28th, Qingdao Haier issued an announcement that the provisional shareholders’ meeting held on the 27th reviewed and adopted the “Proposal for Qingdao Haier Co., Ltd. on the company’s initial public offering of shares and listing on the China Europe International Exchange’s D share market”. This means that Qingdao Haier has taken another step towards becoming the first listed company with D shares.
Previously, Qingdao Haier announced that the number of D shares to be issued will not exceed 400 million shares (prior to the execution of the over-allotment rights), and may grant the book-keeper administrator no more than 15% of the above issued D-shares over-allotment rights. The agency quoted sources as saying that Haier’s issuance of D shares is about 1 billion euros.
In fact, as early as 2017, Qingdao Haier plans to ease the thirst for funds through public issuance of convertible corporate bonds. In the “Analysis of the Feasibility Analysis Report on the Use of Raised Funds for Public Issuance of Convertible Corporate Bonds” announced in September last year, Qingdao Haier The funds to be raised will not exceed 5.64 billion yuan (including 5.64 billion yuan) for smart manufacturing upgrades, channel expansion, advanced R&D laboratories, COSMOPlat industrial internet platform, U+ smart living platform construction, and repayment of interest-bearing liabilities.
'The company has developed rapidly in recent years, and in debt financing in 2016, it has purchased its home appliance business-related assets from GE in cash. The level of financial leverage utilization is high. At the same time, with the expansion of the company's debt financing scale, Since interest expenses have increased significantly, it has affected the company's operating profit to some extent. ' Qingdao Haier said in response to the feedback from the China Securities Regulatory Commission.
In fact, Qingdao Haier released the 2017 annual report on April 26 and also announced a new 5 million self-cleaning air-conditioning investment project.
Industry insiders generally believe that Qingdao Haier plans to issue D shares to be listed in Germany. On the one hand, it can meet part of the funding requirements for expanding reproduction, and on the other hand, it can use the opportunity of listing in Germany to infiltrate the European market and deepen its global layout and further enhance its overall strength. And competitiveness.
According to the relevant person in charge of the Shanghai Stock Exchange, the issuance of D shares will help Chinese companies increase their brand awareness in Europe and expand their European business. They will help to make full use of domestic and foreign financing platforms to realize the internationalization of overseas strategies; M&As will be transformed and upgraded to enhance their global competitiveness. They will help expand offshore financing channels, local financing for local use, and lower exchange rate risks.
According to the relevant procedures, Qingdao Haier shall apply to the China Securities Regulatory Commission for the issuance of overseas D shares and listing. After that, after Qingdao Haier has obtained the letter of acceptance from the China Securities Regulatory Commission, it may initially submit a prospectus to the German Financial Supervisory Authority. China Securities Regulatory Commission Final After approval of Qingdao Haier's D-share listing application, Qingdao Haier may submit a final version of the prospectus to the German Financial Supervisory Authority.