What does private placement mean

2022-04-28 0 By

Private placement is a non-public offering of shares.1. Fixed add wants specific object to add to issue a stock namely, the influence to the stock is not certain, want to see directional add the fund that sends collect to invest in what project.There are a lot of channels for raising capital, such as banks, brokerage institutions, funds, big consortia and so on.2. If a listed company issues new shares and then sells them to the public, we call this an offering.If we do business privately with a small number of buyers and negotiate quantity and price instead of publicly hawking, we call this a private offering.The opposite of a stock issue is a company’s stock buyback.Directional add-on and buyback actually play the same role.3. Directional increase has obvious advantages for listed companies: it is possible to bring immediate performance growth effect to listed companies by injecting high-quality assets and integrating upstream and downstream enterprises;It is also possible to introduce strategic investors to lay a solid foundation for the long-term development of the company.