What is a Direct Public Offering?

A public offering is a way for an issuer to sell securities to a large number of investors in the securities market through a securities underwriter. It can be divided into two ways: negotiation and public bidding. (1) Negotiated public issuance refers to the issuer's previous experience in issuing securities, similar issuance reports, and assistance from related parties. It directly negotiates transaction conditions with securities underwriters or investment banks. Under the conditions of market conditions, determine the best issuing conditions. (2) The public issuance of public bidding refers to the issue of securities by the issuer through public bidding to determine the price and rate of return of securities, etc., to reach a securities issuance contract without negotiating the terms of issue of securities directly with the securities underwriter. Issuing securities through public bidding is very beneficial to the issuer of the securities. The issuer can not only freely determine the conditions for issuance, but also obtain the highest issue price. Public issuance generally requires high social credibility, and it is more complicated in terms of legal and related procedures. In order for an issuer to understand its business conditions, the issuer must provide the company's various financial statements and information, which is not conducive to keeping the company secret. ^[1]

publicly issue

Publicly issued shares do not necessarily require listing. But listing must require

Article 23

When the situation described in Article 61 of the Regulations occurs, the listed company shall immediately clarify within at least the same scope, and immediately notify the Securities Regulatory Commission and the securities trading venues where its shares are traded.

Article 28 Individuals and institutions that violate these provisions shall be dealt with in accordance with the relevant provisions of Chapter VII of the Regulations.

Article 29 The interpretation of these rules is the responsibility of the CSRC.

Article 30 : Any provisions in local regulations that conflict with these rules shall prevail.

Article 31 These rules shall come into effect on the date of promulgation.