Jumei.Com Announces "Privatization" Delisting From US Stock Market

It is understood that Chinese enterprises may encounter some bottlenecks in listing abroad, and Chen Ou also said in his internal letter that privatization is more conducive to companies in the pition period more flexible.

Reporters learned that

Declare privatization and withdraw from US stock market.

On the evening of 17, jumei.com announced that it had received applications for privatization from jumei.com CEO Chen ou and Sequoia Capital, and was ready to privatize at the price of $ADS per ADS, which is 27% higher than the average price of the last ten days.

According to the announcement, the buyer's consortium includes Chen Ou, Dai Yusen and Sequoia Capital, and the buyer's consortium accounts for more than 90% of the voting power.

In fact, the announcement of privatization is not just a jumei.com family. In July 9, 2015, CEO Li Guoqing announced that Dangdang's privatization had also caused an uproar.

According to Chen Ou's internal letter, the value of jumei.com in the US stock market has been seriously underestimated.

The industry told reporters that perhaps it is not that the value is underestimated, but rather the divergence of views and perspectives of investors.

Reporters learned that in May 16, 2014, jumei.com listed on the NYSE, the initial public offering issued 11 million 100 thousand shares of American depositary receipts at the issue price of $22 per share, but the opening price was up to $27.05.

In August 2014, poly America reached its highest level, close to $38.

In the past month, the price of poly us has been hovering at $5-6, a record low of $4.9 last week.

In December 2015, Ju Mei had announced the launch of an item.

In the next 12 months, poly us will buy back the company's stock with a value of up to US $100 million.

Shenzhen city XinDa Logistics Group Co., Ltd., deputy general manager Zhang Jiong, told reporters that Chinese enterprises listed abroad may encounter some bottlenecks.

Listing means that corporate statements and activities must be made public. Foreign listed companies emphasize legal control standards, and strict supervision increases the burden on enterprises to a certain extent.

Foreign countries emphasize statements and lead investors to be unfamiliar with projects.

He believes that privatization of enterprises is conducive to restructuring. Not only is the way of operation of enterprises not known to outsiders, the important thing is not only to avoid the pressure of disclosure of financial reports, but also to increase the authority of control over enterprises to a greater extent. The right of management is more concentrated and conducive to decision-making.

Zhang Jiong also said that companies could raise funds even if they did not go public.

and

Also in the internal letter, privatization is more conducive to the company's flexibility in the pition period.

As a non-listed company, you can better settle down to do the right thing without being distracted by stock prices and earnings.

The United States will also focus on its economic strategy.

Zhang Jiong said that the electricity supplier enterprises are still less listed abroad. When vip.com was listed in the US, it was very popular at the beginning, but the latter stage began to slow down.

He said that if the cross-border electricity providers are listed again, there will be no such good opportunity.

The privatization of jumei.com also caused investors to blame.

Some netizens pointed out that the United States had been profitable for the past 8 quarters, only the quarterly loss before privatization, and the deliberation of privatization measures was a conspiracy theory.

And these investors are also the problems that jumei.com will face next.