A mainland company sells shares to employees at 1.3 percent discount

Office software and service provider Kingsoft Office has launched its first incentive plan since its IPO, granting hundreds of thousands of shares of restricted stock to more than 200 employees at a “1.3 percent discount” to the current share price, with a per capita market value of 1,092,500 yuan per employee. The market value of each employee’s shareholding will be 1,092,500 yuan (RMB, same below).

According to the Daily Economic News on May 13, the announcement of Kingsoft Office shows that the company intends to grant 870,000 shares of restricted stock to incentive targets, accounting for 0.19% of the company’s total share capital of 461 million shares. Among them, 700,000 shares will be granted for the first time. The total number of incentive recipients for the initial grant is 223, accounting for approximately 7.9% of the total number of 2,824 employees of the company (as of December 31, 2020).

Among them, CUI YAN, the head of finance of the Company, was granted 30,000 shares of restricted stock; the remaining 222 persons were granted 670,000 shares. In addition, the company will set aside 170,000 shares of restricted stock for future incentives.

The announcement shows that the grant price is RMB 45.86 per share. As of the close of business on May 12, Kingsoft’s share price closed at RMB352.41/share, the above grant price is about 13.01% of the company’s share price. Meanwhile, the grant price is only 13.56% of the average trading price of the 20 trading days before the announcement of the company’s incentive plan, and 13.44% of the average trading price of the previous 60 trading days.

According to the report, based on the estimated 700,000 shares in the initial grant, 223 shares per person can be granted 0.31 million. The incentive recipients need to spend 142,200 yuan per person to “buy” this equity, but the market value of this equity amounted to 1,092,500 yuan.

Some investors lamented in the stock bar: “Such a cheap price, such a low incentive conditions might as well give it away for nothing.”

From the investor’s statement, Kingsoft Office this incentive unlocking conditions are generally considered to be not a high threshold, the incentive targets smoothly get a large wealth of probability.

Ltd. was founded in 1988, headquartered in Beijing, November 18, 2019, Jinshan Office Software Co., Ltd. in the SSE Science and Technology Board listed trading, the stock abbreviation “Jinshan Office”.