1, standardize the company's equity. In fact, the restructuring process of the New Third Board has turned the company into an enterprise that meets the most basic requirements of the capital market. Therefore, compared with non-listed companies, if listed companies buy, the financial data of the New Third Board Company is true and the basic work is basically done. In contrast, the risk of information asymmetry is actually much smaller.
2. Have certain financing ability. Many institutions have told enterprises that loans can be obtained through equity financing in the Third Board, and shareholders can also pledge equity financing, but the reality is often not so good. It is true that there are many financing cases of the New Third Board and billions of large-scale financing, but the financing ability still depends on the company's own operating conditions rather than whether it is in the Third Board. The third board is undoubtedly helpful to the amount and cost of financing, but it does not mean that enterprises with loose conditions will definitely get financing if they hang up the board.
3. Provide price discovery. Of course, for those enterprises that basically meet the statutory requirements of GEM or even higher, the valuation premium provided by the Third Board is undoubtedly valuable. The M&A consideration of listed companies in non-three-board enterprises is generally below 1.5 times, which is higher in a few better industries, while the M&A consideration of three-board companies is obviously higher than that of non-listed companies in the same industry.
4. Raise awareness. And investor visibility. The company landed on the Third Board, and obtained the implicit credit guarantee of brokers, accountants, lawyers and stock transfer companies, which made investors feel more convenient. Since the company's information has been displayed on a national platform, it is undoubtedly beneficial for the company to find investors under the premise of good operating conditions.
5. As a test of IPO. You can test the company team through the whole process of the New Third Board, test the service level of intermediaries, and see the market's awareness of the company. Compared with non-listed companies, the auditing intensity of companies listed on the New Third Board is definitely different, especially after auditing the following exchanges.
legal ground
The definition of listed companies in Article 120 of People's Republic of China (PRC) Company Law. A listed company as mentioned in this Law refers to a joint stock limited company whose shares are listed and traded on a stock exchange.