Listing is the initial public offering, which refers to the process that enterprises issue additional shares to investors for the first time through the 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. Companies want to go public for the following reasons: First, going public can reduce excessive dependence on bank loans. After listing, the company obtained capital from the capital market, and the asset-liability ratio was greatly reduced. Dependence on bank loans will be reduced, and the credit rating in banks will be improved. When the policy suddenly stops, we will not be too worried about the shortage of capital chain. The second is financing and refinancing, which brings the multiplier effect of funds. Vanke was the first to resell pig feed and gained many development opportunities through refinancing. Third, after listing, scientific corporate governance must be introduced in accordance with the regulations, and a set of standardized management systems and financial systems must be established to promote the management level of the company to a certain extent. The stock market is like a magnifying glass. Whether it is done well or not, it will cause a strong reaction. Listing can increase the flexibility of corporate governance, and the listing of family businesses can move from a closed family system to an open family system.
Legal objectivity:
Article 50 of the Securities Law of People's Republic of China (PRC) * * * A joint stock limited company applying for listing its shares shall meet the following conditions: (1) The shares have been publicly issued with the approval of the securities regulatory authority in the State Council; (2) The total share capital of the company is not less than 30 million yuan; (3) The publicly issued shares account for more than 25% of the total shares of the company; If the company's total share capital exceeds 400 million yuan, the proportion of publicly issued shares is more than 10%; (4) The company has no major illegal acts in the last three years, and its financial and accounting reports have no false records. A stock exchange may prescribe listing conditions higher than those prescribed in the preceding paragraph, and report them to the the State Council securities regulatory authority for approval.