Why do big companies want to go public, and what benefits can going public bring to them?

Updated on Financial 2024-04-24
18 answers
  1. Anonymous users2024-02-08

    If the company can be successfully listed, it will undoubtedly bring sufficient liquidity to the company.

    Moreover, the management of the company does not lose the management rights of the company due to the loss of shares. It is indeed a win-win-win approach to being able to retain management rights while also having access to adequate development funding. Therefore, many excellent listed companies will choose to be in the foreign or domestic market after being recognized by the market.

    Listed. 1. The management who controls the majority of the shares can become billionaires once the company is successfully listed. The management of the vast majority of companies hopes that the company can be successfully listed in the market, because once the market gains the trust of investors, the company's value will rise rapidlyAnd these management, who own the original shares, will be the biggest beneficiaries.

    Although these management management is not able to ** these original shares in the first place, the value of these management has been able to reach the level of tens of millions or even hundreds of millions. <>

    Second, the company's successful listing can also expand the company's development direction. Because many companies like to cooperate with companies that are successfully listed, because companies that are successful in listing can also show that they have enough strength to a certain extent. The progress is really extraordinaryIt can be said that these listed companies can conduct in-depth exchanges and communication with more powerful partners, so once these companies are successfully listed, they will inevitably gain a lot of development opportunities and potential.

    Third, the company's successful listing can also expand the company's own popularity. The company itself ifBrand valueIf it is promoted, it will also make the company get a lot of convenience in the development process. Because the products produced by listed companies have a certain guarantee in qualityThis can also make the products of listed companies more able to impress consumers.

    Of course, after the successful listing of listed companies, they will also be strictly supervised by relevant departments in the development process of the company. Therefore, if these listed companies have a lot of violations of laws and disciplines, they will inevitably be severely punished by the relevant departments, or even ordered to be delisted.

  2. Anonymous users2024-02-07

    The listing of the company can bring huge wealth to the company, improve the company's competitiveness, and expand the company's business channels for development.

  3. Anonymous users2024-02-06

    The reasons why large companies want to go public include: 1. Listing can improve the company's financial situation. 2. The company can acquire other companies when it is listed.

    3. The company's listing can motivate employees. 4.The listing of the company can enhance the company's comprehensive strength.

    5.The listing of a company can enhance the competitiveness of the enterprise.

  4. Anonymous users2024-02-05

    The most direct benefit of listing is to be able to raise funds, raise a lot of money, issue **, become a member of A shares or H shares, and listing can improve visibility and bring benefits to the enterprise.

  5. Anonymous users2024-02-04

    Going public can bring these benefits:1Going public can bring greater benefits to the company; 2.

    5.Can be issued**.

  6. Anonymous users2024-02-03

    One: to solve the problem of development finance, that is, financing, and two: to raise visibility. A listed company and an unlisted company have a natural advantage when selling products or services, and you must consider the company's reputation when buying something.

  7. Anonymous users2024-02-02

    The P/E ratio is the ratio of market capitalization to net profit.

    The factors that affect the total market capitalization are stock price and share capital, and the share capital is relatively fixed.

    The market value of ** is calculated by the share and the net value, and the share is constantly changing, so the total market value is meaningless, it can only reflect the scale, and generally look at the net value.

    There is no net profit, and the total market capitalization is meaningless, so there is no concept of P/E ratio.

    No ** can calculate the so-called P/E ratio.

    Because there are many types, even if it is an index, it is difficult to calculate its price-earnings ratio.

    However, the index ** has a characteristic that it basically replicates the index, so the overall trend and return of the index ** are almost the same as the index it tracks.

    Then we only need to study and understand the price-to-earnings ratio of the tracking index, and we can roughly get the valuation level of this index**.

    Taking CSI 300 as an example, the price-to-earnings ratio (p e) of 2020 04 30 is multiples, and the p e percentile is:

    Only indexes have a price-to-earnings ratio.

    To check the price-to-earnings ratio of the index**, you can check it on the official website of the index company.

    For example, the price-earnings ratio of the CSI index, open the official website of CSI, enter the index ** to be queried, and find the corresponding **. Click to enter the page, find the index**, click the index**, and it will prompt**excel. After opening it, you can see the price-earnings ratio fluctuations of the index.

  8. Anonymous users2024-02-01

    First, raise capital quickly.

    What are the benefits of going public for businesses? The most significant advantage is the rapid mobilization of capital, and a company without a boss is to some extent a private enterprise, and the advantage of this kind of company is that it will not be subject to too many restrictions on its development, and it has a high degree of freedom. But there is also a disadvantage, that is, it is difficult to raise capital, because most investors prefer to invest in listed companies.

    Moreover, after the company is listed, as long as the reason for raising capital is stated in the prospectus, there will actually be investors who will come to visit. Therefore, from this point of view, listed companies are more conducive to raising capital. <>

    Second, equity realization.

    Equity realization is what we are familiar with. In the early days of the company, the people who held the company the most ** in their hands were the executives of the initial company or some investors. Therefore, if the company goes public, these shareholders and executives can obtain huge profits by selling **, and selling ** is also conducive to the company to raise funds, therefore, many companies choose to go public in order to raise funds and recruit talents.

    And companies that are not listed cannot issue **, so in terms of fund raising, the road will be longer. Therefore, listed companies actually have many benefits. Of course, there are pros and cons to both listed and unlisted companies.

    Third, improve the trust between customers and businessmen.

    Listing means openness, transparency and standardization. Therefore, the supervision of listed companies comes from all sides. Therefore, if a listed company wants to develop better, it can only continuously improve the company's core competitiveness, open up the upstream, midstream and downstream industrial chains, and continuously improve products.

    Customers and businessmen often trust the listing formula more, because listed companies are basically in a state of transparency and will not make any small moves casually. Some companies choose to go public, one of the considerations is to improve the company's visibility and brand. <>

    Fourth, improve employee morale.

    The listing of the company also means that employees can hold shares and enjoy the dividends of the company's development together. In such a situation, the employees in the company will work harder, and if every employee has such an idea, then it is difficult for the company to develop. So, the benefits of a listed company are very numerous.

    First of all, in terms of raising funds, there are many channels. Secondly, in terms of brand awareness, there will be less resistance. Of course, whether it is a listed company or a non-listed company, it has a role in promoting the country's economic development, providing job opportunities for the society, and is conducive to the improvement of GDP.

  9. Anonymous users2024-01-31

    The impact of listing on the enterprise is very large, the listing will attract a lot of capital flow to live in the company, the market value of the enterprise will also increase, the company will become very valuable, and it will also enhance its popularity, which is very beneficial to the development of the enterprise.

  10. Anonymous users2024-01-30

    It can improve the financial situation of the company, it can increase the prestige of the company, it can also buy other companies, it can motivate employees, improve work efficiency, and it can get financing for the company.

  11. Anonymous users2024-01-29

    Listing has great benefits to enterprises, first of all, it can improve the company's economic benefits to a certain extent, and can also improve the company's visibility and status, so that enterprises can obtain a large amount of funds, and at the same time can optimize the financial structure, and in this way, it can also reduce the financial leverage of enterprises.

  12. Anonymous users2024-01-28

    These two questions are of great concern to everyone, and many individual investors want to really know why the company wants to go public? What exactly are the benefits of going public? Let's take these two questions to answer.

    Why do companies want to go public? I think that the bigger and stronger of the enterprise is to go public, and many companies take the successful listing as the ultimate goal, so in the end, the company wants to go public? There are several main reasons:

    (1) The listing of enterprises can improve their financial situation

    Because once the company is successfully listed, it can raise a sum of money through the market, and this time the funds can bring a lot of liquidity to the company, so that the company has more funds to carry out business, so that the company can become bigger and bigger, so as to improve the capital structure of the enterprise and enhance the financial strength of the enterprise, which is the main reason why the company wants to go public.

    (2) It can improve the prestige of the enterprise

    There is definitely a big difference between a company that has been listed and what is not listed, and the company that has been listed must have a high reputation, and the perception of other companies is different, which is conducive to the company's business. Therefore, once it is listed, it has a high reputation and a good reputation, which is good for the company in the long run, which is also one of the main reasons why the company wants to go public.

    (3) You can use ** to acquire other enterprises

    When the company is successfully listed, it becomes a joint-stock enterprise, and the shares are valuable, so the shares are valuable. Similar to when a listed company acquires other companies, not all of them are cash transactions, and listed companies can issue shares or buy shares in the secondary market to acquire other companies, which is one of the reasons why companies want to go public.

    (4) Listed companies can motivate employees through **

    The shares of unlisted companies are generally not guaranteed, but once the company is successfully listed, the shares of the enterprise are valuable. Listed companies can use these shares as incentives for employee stock ownership, so that more employees think that hard work is also working for themselves, which will allow more employees to work hard.

    These four reasons are the real reasons why companies want to go public.

    Let's talk about the benefits of going public?

    The above has also analyzed the four major benefits of going public: promoting the company's financial improvement; Enhance the prestige and reputation of the enterprise; Acquisition of other enterprises by using ** enterprises; Shares can be awarded to employees and other benefits.

    Of course, in addition to these four major benefits, the real benefit of enterprise listing is that it can finance the enterprise, which is the biggest benefit of the enterprise listing. The second advantage is that there is an additional channel for cashing out, and major shareholders can cash out their urgent money. The third major benefit is that you can get a business mortgage, which is a series of benefits such as secondary financing.

    In short, it is very normal for companies to want to go public, because there are many benefits of going public, and the advantages outweigh the disadvantages, which is the reason why companies are really listed.

  13. Anonymous users2024-01-27

    The company's initial issuance and listing can raise a large amount of funds, and there are also opportunities for refinancing after listing, thus providing funds for the further development and growth of the company**. It can promote enterprises to establish a standardized operation and management mechanism, improve the corporate governance structure, and continuously improve the quality of operation.

  14. Anonymous users2024-01-26

    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 is listed, there are more possibilities for the company to continue to grow through mergers and acquisitions. Of course, through the listing, the business owner has also achieved a sharp increase in value.

    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 state of A-shares.

  15. Anonymous users2024-01-25

    Why do companies want to go public? Because there are 4 major benefits: financing, assetization, strategy and branding.

  16. Anonymous users2024-01-24

    First of all, after the company goes public, it will get more funds to expand production and maintain the operation of the enterprise. At the same time, with the increase of shareholders, the risk of existing shareholders is dispersed to a certain extent.

  17. Anonymous users2024-01-23

    Enterprises can get more funds when they go public, which can be used to expand their production scale, develop operations, and after listing, they will enhance their brand awareness, and the company can also use ** or options to attract and retain talents and improve its loyalty.

  18. Anonymous users2024-01-22

    The successful listing highlights the achievements of the entrepreneur and makes the company hope to achieve leapfrog development. Most of the Fortune 500 companies in the United States are publicly traded companies.

    Benefits: From the company's point of view, it can promote the enterprise to improve the corporate governance structure, enhance the corporate image, and motivate employees.

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