What Does Mean for a Company to Go Public?

Listing is a term for the securities market. Narrow listing is Initial Public Offerings (IPO) refers to the process of a company's initial public offering of shares to investors through a stock exchange in order to raise funds for corporate development. When a large number of investors subscribe for new shares, they need to allocate shares in the form of lottery, also called new shares. Investors who subscribe are expected to sell at a price higher than the subscription price. Under the Chinese environment, listing is divided into Chinese companies listed in China or Shanghai and Shenzhen Stock Exchanges (A shares or B shares), and Chinese companies go directly to overseas stock exchanges (such as the New York Stock Exchange, NASDAQ Exchanges, London Stock Exchanges, etc.) (H shares) and Chinese companies indirectly by setting up offshore companies overseas and listing them on overseas stock exchanges (red chip stocks) in the name of the offshore company.

[shàng shì]

Listing is a term for the securities market. Listing in a narrow sense

Restructuring phase

Under the Securities Act 2006:

Article 48 To apply for the listing and trading of securities, an application shall be submitted to the stock exchange, which shall be reviewed and approved by the stock exchange according to law, and signed by both parties.

Production of application materials

One year after the establishment and operation of a joint-stock company, if the local dispatch agency of the China Securities Regulatory Commission meets the conditions for acceptance, it can produce formal application materials.

The application materials are

(1) The shares have been publicly issued upon approval of the securities administration department of the State Council;

(2)

advantage

1 Improving the financial situation

Funds obtained through stock listing do not have to be repaid within a certain period of time. On the other hand, these funds can immediately improve the company's capital structure, which allows the company to borrow loans with lower interest rates. In addition, if the new shares are listed with great success and the market trend is very strong in the future, the company may have better prices in the future.

At the beginning of the new year, many new stocks can't wait to prepare for listing in Hong Kong. It is said that Chinalco Mining (Chinalco), Shijibao, Pan Asia, etc. will launch IPO plans in the short term.

Oriental Daily reported that Chinalco Mining has made a comeback and plans to start listing and listing in the first half of the year, raising 300 million to 400 million US dollars. In fact, there were many new stocks listed in June. At that time, Chinalco Mining also made a recommendation and entered the final straight path. The fundraising amount reached up to 1 billion US dollars, but the listing plan was finally postponed. By October, the plan for listing was re-planned and the financial data was updated to the Hong Kong Stock Exchange, but the amount of funds raised was greatly reduced to US $ 400 million.

Chinalco Mining is spun off by Chinalco's parent company and owns the Toromocho copper mine in Peru. It is mainly engaged in infrastructure construction and engineering design services for mineral projects.

Time Watch, which is engaged in the production and sales of low-end watches, has also reportedly launched a stock offering and plans to raise about $ 100 million and list it next month. It is understood that Shijibao owns two own brands "Tianwang Watch" and "Baige", with an average selling price ranging from 1,500 yuan to 5,000 yuan, more than 1,500 sales points in China, and revenue of nearly 1 billion yuan. It is also reported that Pan Asia, an aluminum sheet company, is also planning to raise shares this month, raising 100 million to 200 million US dollars.

As for Galaxy Securities, listing applications have been submitted to the regulatory authorities in China and Hong Kong respectively, with plans to list simultaneously in Hong Kong and Shanghai with "A + H" shares. Galaxy Securities has submitted an application for listing at the end of 2012. In reviewing the information, it is expected that the results will be announced in January. The amount of fundraising is more than the US $ 1 billion previously marketed, or as high as US $ 1.92 billion. Billion to 6 billion yuan. ^[3]

As of September 2018, 46 private A-share listed companies have announced the acquisition of state-owned capital. Conservative estimates involve an amount of 30 billion yuan, and 24 of them are transfers of controlling shares. Among them, 14 companies have disclosed the intention of major shareholders to transfer equity to state-owned assets. ^[4]