What is the overall listing and what are the ways to go public as a whole

According to the relevant provisions of the Exchange Listing Qualification and the Company Law on Listed Companies, a company that wants to be listed must meet some hard accounting indicators, in order to achieve this purpose, shareholders will generally split a large enterprise into two parts: a joint-stock company and a 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 and listing. After the joint-stock company is successfully listed, it will use the funds obtained to acquire its own parent company, which is called an overall listing!

Question addendum: Is the overall listing good? Will the stock price increase?

As for the impact on the ****, it depends on what company is listed as a whole, the market environment and other factors. Generally speaking, it is good news.

The overall listing is definitely good for listed companies, because there are more high-quality assets coming in, and the parent company relies on listed subsidiaries to develop better. The company's fundamentals will also change fundamentally, so the stock price will definitely perform, as for how much it will rise, it depends on market funds.

Overall listing means that a company must meet some hard accounting indicators if it wants to be listed, and in order to achieve this purpose, shareholders will generally split a large enterprise into two parts: a joint-stock company and a parent company. So what are the ways to go public as a whole?

1、 ipo。The IPO model refers to the exchange of shares between the group company and the public shareholders of the listed company in a certain proportion, absorbing and merging the listed company, and issuing new shares at the same time. This model can not only meet the needs of the group company for funds in the rapid development stage, but also enable the resources of the group company to be integrated, so as to further promote the improvement of resource use efficiency, and is suitable for the group company in the rapid development period.

2. Mergers and acquisitions. The share exchange merger and acquisition model is to absorb and merge all listed companies with the same actual controller through share exchange to complete the overall listing of the company. Since there is no new financing in this model, it is mainly applicable to the integration of resources within the group to improve the internal management process of the group, straighten out the relationship between the industrial chain, and lay a solid foundation for the long-term development of the group.

3. Additional issuance and acquisition. The additional issuance and acquisition model refers to the private placement of the listed company of the group to the major shareholders to acquire the assets of the major shareholders to achieve the overall listing. This model is widely used.

4. Anti-takeover. Refinancing and reverse acquisition of parent company assets is the acquisition of parent company assets through refinancing (additional issuance, placement or convertible bonds), which is a more traditional way to go public as a whole, and its advantage is that the plan is simple, but refinancing is often not welcomed by the market, especially when the profitability of newly placed assets is weak and earnings per share are diluted.

That's all for you about the overall listing.

1. The overall listing refers to the fact that a company wants to be listed must meet 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 the spin-off listing, and the joint-stock company will use the funds to acquire its own parent company after the successful listing, which is called the overall listing.

2. Corresponding to the overall listing is 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.

3. Generally speaking, there are four ways to go public as a whole: IPO, M&A, additional issuance and acquisition, and reverse takeover.

Initial public offering (IPO), commonly known as listing, refers to the initial public offering of equity and raising funds by enterprises to investors through the ** exchange. How to understand the easy-to-understand "listing" simply means that the enterprise in the professional market (China has two Shanghai ** trading market, Shenzhen ** trading market) will sell the equity to you, your money flows to the enterprise, for the enterprise to operate, this money is not to be repaid, your purchase of equity becomes "**", the behavior of the enterprise ** equity can be understood as a financing method.

Is it possible for all companies to be listed, we mentioned that listed companies raise funds through ** equity, and the funds raised do not need to be repaid, such a good thing is that all domestic enterprises can do this? The answer is definitely no, there are strict standards for listing, such as the requirements for the asset strength of the enterprise, the requirements for financial norms, the requirements for management norms, the requirements for the number of shareholders, the requirements for total share capital, the requirements for no illegal records in the past three years, the requirements for earnings in the past three years, and so on. At present, there are many large and small companies and enterprises in China, but there are only less than 4,000 listed companies, which shows the difficulty of listing.

Moreover, even if the company meets the access conditions for listing, the China Securities Regulatory Commission still needs to queue up for review, and the queue process is a long process, and it is possible to queue for several years, so the concept of "backdoor listing" was born. We won't talk about backdoor listings for the time being.

What are the benefits of a company after listingWhat are the benefits after listing? Other benefits include enhancing corporate image, expanding corporate visibility, improving corporate social status and right to speak, business operation is more standardized, enhancing employee cohesion, promoting local economic development, increasing employment opportunities, attracting more scientific and technological talents, etc. After going public, the company has been in the market, right?

The answer is no, after listing, the company is subject to stricter supervision, once it is found that a certain index of the enterprise does not meet the standards of listed companies, it will be forced to delist, such as net profit losses year after year, financial fraud, business activities with major violations of laws and regulations, etc. may face the risk of forced delisting. Some companies will choose to delist in China in order to list in the United States, and some companies must be delisted in Hong Kong stocks after listing in Hong Kong.

Initial public offerings (IPO) refers to the process of an enterprise issuing additional offerings to investors through the initial public offering of the Exchange in order to raise funds for the development of the enterprise.

When a large number of investors subscribe for new shares, they need to be allocated by lottery**, also known as new shares, and the subscribed investors expect to sell ** higher than the subscription price.

Post-market risks.

The earnings of many publicly listed ** are not as high as expected, and some even plummet for various reasons. The reason for these disappointments is likely to be that the market is generally sluggish, or that the company's earnings are not as good as expected, or that the public finds that they don't really have the level of experts to advise them when they go public.

Listing and post-listing setbacks can seriously affect the profits of venture capital, and even make venture capital fall short. Therefore, when deciding whether to go public or not, venture capitalists and company search or entrepreneurs will comprehensively weigh the pros and cons of their knowledge.