Why should the company go public? Why do companies want to go public?

Updated on Financial 2024-02-22
8 answers
  1. Anonymous users2024-02-06

    1.Widely absorb social funds, and the injected funds can expand the scale of operation.

    2.Enhance the corporate image, enhance the company's credibility and influence.

    3.After listing, a company needs to disclose its financial statements on a regular basis to keep its operating conditions in the public eye. Improve the impact on the industry and the audience, create wealth, increase the wealth of shareholders and employees, and enhance employee loyalty.

  2. Anonymous users2024-02-05

    About the listing of the company.

    The meaning, in simple terms, mainly has the following points:

    1. Access to continuous and stable financing channels.

    First, listed companies have high credit qualifications, which is conducive to obtaining bank loans.

    Second, enterprises can carry out direct financing through the issuance of **, which can break the shackles of financing bottlenecks, obtain long-term and stable capital funds, and improve the capital structure of enterprises.

    Third, it can also be through a variety of financial instruments such as allotment, additional issuance, and convertible bonds.

    Achieve low-cost, ongoing financing.

    In this way, the funds needed for the development of enterprises are solved, and enterprises can invest more funds in research and development, and the listing of small and medium-sized enterprises will effectively enhance the motivation and ability of enterprises to start a business and innovate.

    2. Enhance the brand value of the enterprise.

    and market influence.

    Listing is a huge intangible asset for a company.

    **The attention given to a public company is much higher than that of a private company, and in a sense stronger than any advertising effect.

    Access to capital markets.

    It shows that the growth, market potential and development prospects of small and medium-sized enterprises are recognized, which is itself a symbol of honor.

    At the same time, restructuring and listing play a huge role in the brand building of small and medium-sized enterprises, especially for private enterprises, which can effectively enhance the status of enterprises.

    3. Promote the standardized development of small and medium-sized enterprises.

    The process of restructuring and listing of enterprises is to clarify the direction of development and improve corporate governance.

    The process of consolidating basic management and achieving standardized development.

    Listing can standardize the corporate governance structure, establish a modern enterprise system, improve the level of enterprise management, reduce business risks, and so on.

    4. Attract outstanding talents and improve employee efficiency.

    After listing, enterprises can establish a perfect incentive mechanism with equity as the core, attract and retain core management personnel and key technical talents, improve the enthusiasm of employees, thereby improving the company's operating performance and laying the foundation for the long-term stable development of the enterprise.

    5. Improve credibility.

    For customers, they are more willing to buy the products of listed companies, which is reassuring.

    Therefore, the listing of enterprises can increase the public's trust in enterprises, improve the corporate image, and be conducive to the brand building and market development of enterprises. Only Zhao slippery.

    6. Enhance the company's competitive advantage.

    For the local government, it is hoped that the more listed companies in the jurisdiction, the better, which can drive the local economic development.

    The above is the role and significance of the listing of enterprises, I hope this Q&A can solve some of your doubts and problems.

  3. Anonymous users2024-02-04

    First, first of all, the listing is conducive to standardizing the company's rules and regulations, organizational structure, and some even carry out a thorough makeover of the company, breaking the traditional management model and operating mechanism, the company is subject to public supervision, which is conducive to scientific management and is beneficial to the development of the company; Furthermore, expand popularity, increase the advantages in similar competitive products, and gain the trust of consumers; Finally, after listing, the ability to obtain continuous financing can obtain a large amount of low-cost capital. When the enterprise is short of funds, it can obtain a large amount of funds in a short period of time by means of additional issuance, which can be used to alleviate the company's short-term difficulties. 1. Listing can be financed, and then you can expand your business; 2. Get funds to increase the liquidity of shareholders' assets; 3. After listing, it has a certain role in promoting the company's management level; 4. It is convenient for mergers and acquisitions, and after the financing of listed companies, they can use their cost advantages to merge potential competitors and other benefits.

    2. There are a total of 10 rights of the top 10 shareholders of listed companies to have no oranges: the first is to formulate and amend the articles of association; the second is to show the identity of the shareholder; the third is to attend the shareholders' meeting and exercise the right to vote; Fourth, it is proposed to convene an extraordinary shareholders' meeting, and a shareholders' meeting will be convened under special circumstances; the fifth is to request the cancellation of the shareholders' meeting; Sixth, to know the company's financial situation; the seventh is the right of access; the eighth is the right to participate in major decision-making; the ninth is the right to income from assets; The tenth is the right to review related party transactions. In the A** field, there is no fall below the original stock price (before the restructuring is generally par value, after the restructuring is not listed before the internal capital may be introduced, such as CCB, it is generally the internal stock price) mainly depends on the cost of holding and the stock price prospect of the listed offering, the stock price prospect of the listed issuance is good, the shareholders will make a profit, the stock price prospect of the listed issuance is not good, for the shareholders with high holding costs, such as the subscription at the issue price, may lose money.

    The original shares are generally lower than the issue price, and the shareholders who hold them make a greater profit, so the shareholders of the company that is preparing to go public generally receive a larger benefit. Third, as a listed company shares of the benefits of these overall listing refers to a company that wants to be listed must achieve some hard accounting indicators, in order to achieve this purpose, shareholders will generally split a large enterprise into two parts: the joint-stock company and the parent company, put high-quality assets in the joint-stock company, and some assets that have nothing to do with the main business and are of poor quality (such as: canteens, kindergartens, loss-making assets, etc.) are placed in the parent company, which is spin-off listing. After the joint-stock company is successfully listed, it will use the funds to acquire its own parent company, which is called the overall listing.

    Corresponding to the overall listing is the spin-off listing, which refers to the practice of a company restructuring part of its assets, business or a subsidiary into a joint-stock company for listing.

  4. Anonymous users2024-02-03

    Generally speaking, companies choose to go public for the following reasons:

    1. Shortage of funds. After the enterprise is listed, it is conducive to increasing the proportion of the enterprise's own capital, improving the company's own ability to resist risks, and enhancing the development potential of the enterprise.

    2. After listing, the company can use the best to acquire other companies, and it can also use the best to mobilize the enthusiasm of employees.

    3. The most important thing is that the listed company is more likely to get the attention of the business community, investors, the press and consumers.

    In addition, according to the provisions of Article 57 of the ** Law of the People's Republic of China, the company shall meet the following conditions when applying for the listing and trading of corporate bonds:

    1) The term or concession of corporate bonds is more than one year;

    2) The actual amount of corporate bonds issued shall not be less than RMB 50 million;

    3) The company still meets the statutory conditions for the issuance of corporate bonds when applying for bond listing.

    Article 57 of the ** Law of the People's Republic of China prohibits the ** company and its employees from engaging in the following behaviors that harm the interests of customers:

    1) Buying and selling for the customer in violation of the customer's entrustment**;

    2) Failure to provide the customer with the confirmation of the transaction within the specified time;

    3) Buying and selling for customers without the entrustment of the customer, or buying and selling ** in the name of the customer;

    4) Inducing customers to engage in unnecessary trading in order to obtain commission income;

    5) Other behaviors that violate the true intention of the customer and damage the interests of the customer.

    Where the provisions of the preceding paragraph are violated and losses are caused to the customer, the customer shall be liable for compensation in accordance with law.

  5. Anonymous users2024-02-02

    1. Funds can be raised, and the key funds raised do not need to be repaid, and the funds raised through the issuance of ** are raised.

    2. After the company is listed, it is conducive to the improvement of the company's image, and it is easier for listed companies to gain the trust of the society, it is easier to obtain the recognition of the market, and it is easier to obtain the recognition of the user, which is beneficial to the company to obtain a larger market and the development of the company.

    3. Listing is beneficial to the promotion of the company's brand, the credibility of the listed company is stronger, and it is more beneficial for the company to establish a good brand.

    5. The development of the enterprise is walking on two legs, the operation of an industry, the operation of a capital, and only the perfect combination of the two can the enterprise develop better.

    6. It is conducive to the integration of the company's industry, and the integration of the company's industry needs a large platform, and the listed company is the best platform.

  6. Anonymous users2024-02-01

    The company's IPO means that the company raises funds through the issuance of new shares, and is listed and traded on the public market for the first time.

    What are the benefits of going public?

    First of all, funds can be raised, and the funds raised do not need to be returned, but the funds raised through the issuance of **.

    Secondly, the wealth of the major shareholders of listed companies has increased significantly, before the company was listed, the company's ** is worthless, and the company's ** will be dozens of times less after the public listing, more than hundreds of times, or even thousands of times the increase, and the listing is the company's major shareholders to create a wealth machine. Before the listing, the company's ** is one yuan per share, and the stock price of the company after listing is tens of yuan or hundreds of yuan per share, and the stock price of the company before listing may still have water per share. Therefore, going public is the best opportunity for the company's major shareholders to quickly obtain huge wealth.

    Third, after the company is listed, it is conducive to the improvement of the company's image, and it is easier for listed companies to gain the trust of the society, it is easier to obtain market recognition, and it is easier to obtain the recognition of users, which is beneficial to the company to obtain a larger market and the development of the company.

    Fourth, the listing is beneficial to the promotion of the company's brand, the credibility of the listed company is stronger, and it is more beneficial for the company to establish a good brand, the company has a good brand, the added value of the company's products will increase, the added value of the company's products will increase, and the company's profits can increase.

    Sixth, it is beneficial to the company's capital operation, the development of the enterprise is two legs walking, the operation of an industry, the operation of a capital, only the perfect combination of the two enterprises can develop better. Seventh, it is conducive to the integration of the company's industry, and the integration of the company's industry needs a large platform, and the listed company is the best platform.

  7. Anonymous users2024-01-31

    Listing is not the only way for enterprises to raise funds, but it is one of the best ways to raise funds, and it is also an opportunity for the overall improvement of corporate governance, especially for most of China's private enterprises from the grassroots, listing is a process of internal and external repair.

    The benefits of listing are not only financing, but also the listing itself can enable the company to replenish a large amount of capital, and the listing can optimize the financial structure of the enterprise, so that the enterprise can carry out debt financing on a larger scale in the future. It can replenish capital, reduce the financial leverage of the enterprise, and reduce the cash flow pressure of the enterprise. This is especially true for companies with thin gross margins and a high proportion of financial expenses in constant costs.

    Whether it is market or not has a profound impact on the premium of the brand, and listed companies usually have an advantage in business cooperation. A typical case is that whether or not to go public has a significant impact on business goodwill. As soon as many companies hear that the other party is a listed company, they will have an intuitive judgment on the other party's corporate strength and brand at the first time, and they are willing to make more concessions in business cooperation in the future.

  8. Anonymous users2024-01-30

    Because public companies have the following benefits:

    1. Financing advantages. Once the company is listed, it is financed.

    After the company is listed, it can obtain relatively cheap funds through refinancing, bond issuance and other channels, and it is not difficult to find bank loans with the endorsement of the listed company's platform. In addition, once the company loses and the market is eliminated, there are more possibilities for the company to continue to grow through mergers and acquisitions. Of course, through going public, business owners have also realized a sharp increase in their worth.

    Of course, there is also a cost to go public. The requirements for the company to be listed are very strict, and the standardized operation under the main board can only be prepared for listing after a few years, and the standardized operation must be maintained after the listing.

    2. High premium transactions. So why does the listing ** go up? This is actually an illusion given to everyone by an A-share IPO, and there are very few broken A-share listings, and there have been basically no in recent years.

    On the contrary, as soon as it is listed, it is three times and five times the **, creating tens of millions of people, and many companies no longer want to start a business with peace of mind when they are listed, but have been"Success", so make up stories, rub hot spots, raise stock prices, and finally clear the position. This is the current situation of A-shares.

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