Why do some companies like to go public? What are the benefits of listing?

Generally speaking, companies choose to go public for several reasons:

1, issue shares

When stocks are issued, investors can buy them independently, and the money they buy is equivalent to the money borrowed by enterprises, which is used to make better products.

This operation doesn't sound like a bank deposit. Bank deposit is to absorb people's deposits, then make full use of funds, and then allocate money to the accounts of people who need to borrow money.

Therefore, it is beneficial for enterprises to go public, which can help enterprises to raise funds and make big plans.

2. Financing

At present, the stock market is the best channel for direct financing. Enterprises can issue shares to the secondary market in exchange for funds and enrich cash flow. In addition to issuing shares for the first time, they can also raise funds through a series of channels such as issuing additional shares. With capital, enterprises will continue to expand their business and integrate the industrial chain.

3. Enhance brand influence

The listing of an enterprise is a sign of its growth to a certain extent, and its corporate image will be greatly improved. After listing, it will be supervised by the public, which is conducive to improving enterprise management.

4. Policy support

After successful listing, enterprises will get many local preferential policies and subsidies.

Extended data:

According to the provisions of Article 50 of the Securities Law of People's Republic of China (PRC), a joint stock limited company applying for stock listing shall meet the following conditions:

(a) approved by the the State Council securities regulatory authority for public offering. ?

(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.

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