① Different definitions
Initial public offering (IPO), in a narrow sense, refers to the process in which an enterprise issues shares to investors for the first time through a stock exchange in order to raise funds for enterprise development. When a large number of investors subscribe for new shares, they need to draw lots for allotment, which is also called drawing new shares. Investors who subscribe expect to sell at a price higher than the subscription price.
2 issue stocks.
The public offering of shares shall be examined by the China Securities Regulatory Commission. The public offering of shares is to produce goods or factories, so it is also called the primary market, and listed companies are audited by the exchange. Listing is a transaction, commodity is a market, and the transaction after listing is called secondary market. After the public offering of shares, the qualifications of enterprises are recognized. At this time, enterprises generally require listing.
③ shares
The shares of listed companies are sold through brokers or market makers according to the terms agreed in the corresponding prospectus or registration statement issued by China Securities Regulatory Commission. Generally speaking, once the initial public listing is completed, the company can apply for listing on the stock exchange or quotation system. A limited liability company should be changed into a joint stock limited company before applying for IPO.
IPO is just a way for companies to go public. IPO is a narrow sense of company listing. Broadly speaking, the listing of a company includes not only the public (non-directional) issuance of shares, but also the release/launch of new products or services in the market.
China companies have three ways to go public:
(1) China companies (A shares or B shares) listed in China or Shanghai and Shenzhen stock exchanges.
② China companies go directly to overseas stock exchanges (such as new york Stock Exchange, Nasdaq Stock Exchange and London Stock Exchange). (h shares).
(3) China companies indirectly set up offshore companies overseas and listed on overseas stock exchanges in the name of offshore companies (red chips).