Initial public offering means that an enterprise sells its shares to the public for the first time.
Usually, the shares of listed companies are sold through brokers or market makers according to the agreed terms in the prospectus or registration statement issued by the corresponding CSRC.
Generally speaking, once the initial public listing is completed, the company can apply for listing on the stock exchange or quotation system. [1] A limited liability company should be changed into a joint stock limited company before applying for IPO.
Listing is a term in the securities market. In a narrow sense, initial public offering (IPO) refers to the process that 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.
Under the environment of China, the listing is divided into two parts: China company is listed on China Shanghai Stock Exchange and China Shenzhen Stock Exchange; China companies directly go public on non-Chinese mainland stock exchanges (such as Hongkong Stock Exchange, new york Stock Exchange, Nasdaq Stock Exchange and London Stock Exchange). ).
China companies indirectly set up offshore companies overseas and listed on overseas stock exchanges in the name of offshore companies (red chips).
From 20 1 1, the State Council clearly proposed to build a multi-level capital trading market with the framework of a primary main board, a small and medium-sized board, a secondary growth enterprise market, a third-level national share transfer system for small and medium-sized enterprises (the New Third Board) and a fourth-level regional equity trading market.
It can also be clearly seen in the documents issued by the local government that "the reserve resource pool of listed companies should be improved, and the market optimization mechanism should be established to promote the listing and financing of start-ups in Shenzhen Stock Exchange, the National Small and Medium-sized Enterprise Share Transfer System (referred to as the" New Third Board ") and regional equity trading markets." Attention.
Therefore, broadly speaking, listing includes not only the public (non-directional) issuance of shares by companies, but also the listing and trading in China multi-level capital market and the release/launch of new products or services in the market.