When can a company consider issuing warrants?

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A warrant is a certificate of right that stipulates that the holder of ** can have the right (but not the obligation) to purchase the subject ** from the issuer according to the agreement within a specified period of time; Warrants are a financing promotion tool, which can promote the company to complete the issuance plan within the specified time limit, successfully achieve financing, and it also helps to improve the governance structure of listed companies; It has the characteristics of leverage effect timeliness, the holder of the warrant and the holder of the underlying asset enjoy different rights, and the particularity of investment income;

At present, the warrants issued are generally attached by listed companies to reduce the cost of bond issuance (separate transaction convertible bonds), which is the so-called one-time issuance of two financing, and the purpose of issuing warrants is to reduce the interest on the issuance of bonds;

There are certain requirements for the issuance of warrants, first of all, the conditions for the issuance of bonds must be met, that is, the net assets are not less than 1.5 billion yuan, and the circulating share capital is not less than 300 million, and secondly, the warrants issued by the warrants, the number of shareholders and so on are limited, you can see the issuance rules of the Shanghai Stock Exchange;

When can you consider the issuance depends on the company's own asset-liability ratio, if its own asset-liability ratio is very high, it is difficult to achieve success when it reaches more than 80%. This is because the main purpose of bond issuance is to increase the effect of financial leverage. An asset-liability ratio of around 50% can still be considered.

Some enterprises have high profitability and do not want to sacrifice their controlling stake can also issue bonds for financing. There are also some companies that have a strong demand for capital and will also consider issuing warrants.

A warrant is a certificate of right that stipulates that the holder of ** can have the right (but not the obligation) to purchase the subject ** from the issuer according to the agreement within a specified period of time;

A warrant is an option issued by a share that can be subscribed for. It gives the holder the right to purchase a certain number of shares of the issuing company within a certain period of time with a pre-agreed **. For fundraising companies, the issuance of warrants is a special means of fundraising.

The warrant itself contains an option clause, and its holder has neither debt nor equity in the issuing company before subscribing for shares, but only has the right to subscribe. Nonetheless, the issuing company can raise cash through the issuance of warrants, which can also be used as a form of compensation to the underwriters at the time of incorporation.

Without ideals and goals, life is really boring43

Exercise refers to the purchase or subject matter purchased by the holder of the warrant from the issuer as agreed upon when the issuer issues the warrant. If you hold the warrant and choose to exercise it, you have the right to buy it for $12 shares.

Warrants are the cost you will have to pay to purchase each warrant in order to obtain that right.

12+ means that when you choose to exercise, the actual cost of each share you buy is 15 yuan, that is, the exercise of **12 yuan, plus the required warrants of 2 yuan shares (the exercise ratio is 2:1, which means that the two warrants can give you the right to buy one share of the stock ** at the exercise price of 12 yuan).

According to the issuer, warrants are divided into two types: equity warrants and covered warrants. Equity warrants are warrants in the narrow sense, and Tanshi is issued by a listed company. Covered warrants are generalized warrants, which are issued by a third party other than the listed company (generally ** company, bank and other non-credit core) and do not increase the share capital of the joint-stock company.

When the company opens an account, you can buy and sell when you open a warrant operation.

Hello, warrants, also known as company warrants, are subscription warrants issued by the listed Gongshi Qin Division. The ** obtained by the holder of the warrant after the successful exercise of the right shall be a new issue for the listed company. Warrants** listed on the Shanghai Stock Exchange contain the "CWB" designation.

About warrants (rubbing questions) - Financial Review Network "There are a large number of answers to questions about this kind, you can check it out!

<> What is a warrant?

A warrant is a financial instrument, and it is a right, not an obligation. It gives the holder the right to buy or sell the underlying asset (e.g. shares, indices, commodities, currencies, etc.) at a predetermined strike price on a predetermined maturity date.

Here's a simple example.

Jane holds ABC warrants at exercise price = $10 per share. Each warrant is valid for the purchase of 1 ABC** share. The warrants have a 3-month expiration date.

The current company's stock price = 12 yuan per share, then if Jane exercises, it can be purchased at 10 yuan per share, and at 12 yuan ****, a profit of 2 yuan.

If before the expiration date, the company's stock price = $8 per share, Jane can choose not to exercise the option, and the warrant is a piece of waste paper.

Warrants are somewhat similar to options, but there are differences. The ** obtained after the exercise of the warrants is newly issued by the company, so there is a risk of dilution.

So why does the company issue ** warrants?

The company issues ** warrants to attract investors. A company can attach warrants to a bond while granting a lower coupon. If ****, the investor holder will receive a certain fixed return and keep it.

Upside. For the company, Buffett has held warrants several times.

As a value investor, when he is optimistic about a company's off-balance prospects, he buys the company's warrants so that he can buy the company's at a lower price in the future and get a higher return when ******.

Bank of America. In 2011, Buffett invested in Bank of America with preferred stock, which has an annual interest rate of 6% and comes with a warrant that allows Buffett to buy Bank of America at an exercise price in U.S. dollars until 2021.

In 2017, Warren Buffett exercised his option to buy $700 million of Bank of America** in U.S. dollars, costing about $5 billion. At that time, Bank of America's stock price was above $24, which means that Buffett's stake in the bank was worth $17 billion. The book profit on this transaction was $12 billion.

Youfang Shidi. Warren Buffett made his first $10 billion investment in Occidental Petroleum in 2019 in exchange for preferred stock with an 8% yield and warrants attached to the future purchase of 80 million shares of Occidental Petroleum common stock at an exercise price of dollars per share.

With the great changes in the energy market in recent years and the outbreak of YQ, in the face of uncertainty, Buffett has experienced a liquidation, and then increased his holdings of Occidental Petroleum several times, and now holds a 100 million shares, with a market value of about $12.2 billion. and warrants for the purchase of 83.86 million shares of Occidental Petroleum common stock in U.S. dollars. This suggests that Berkshire may take a stake in Occidental Petroleum in the future, adding it to the energy map.

Legal analysis: A warrant is a kind of ** option issued by the company. It is possible to subscribe to it**.

It gives the holder the right to purchase a certain number of shares of the issuing company at an agreed ** within a certain period of time. For financing companies, the issuance of warrants is a special means of financing. The warrant itself contains an option clause, and the holder has neither debt nor equity before subscribing for shares, but only the right to subscribe for **.

Legal basis: Company Law of the People's Republic of China

Article 71 The shareholders of a limited liability company may transfer all or part of their equity to each other.

The transfer of equity by a shareholder to a person other than the shareholder shall be subject to the consent of more than half of the other shareholders. Shareholders shall notify other shareholders in writing to solicit consent for their equity transfer, and if other shareholders do not reply within 30 days from the date of acceptance of the written notice, they shall be deemed to have agreed to the transfer. If more than half of the other shareholders do not agree to the transfer, the shareholders who do not agree shall purchase the transferred equity; If you do not purchase it, you will be deemed to have agreed to the transfer.

For the equity transferred with the consent of the shareholders, other shareholders have the right of first refusal under the conditions of the same bend. If two or more shareholders claim to exercise the right of first refusal, they shall negotiate to determine their respective purchase ratios; If the negotiation fails, the right of first refusal shall be exercised in accordance with the proportion of their respective capital contributions at the time of transfer.

Where the articles of association of the company have other provisions on the transfer of equity, such provisions shall prevail.