Enterprises can not only raise a considerable sum of money when they go public, but also refinance after listing, and use the shares of enterprises as financing for mergers and acquisitions. Public listing is the most attractive long-term financing form for enterprises, which can fundamentally solve the capital needs of enterprises. There is no doubt about the refinancing ability of Hong Kong's capital market. In addition, the financing costs of banks and financial institutions will also be reduced.
2. Listing is conducive to improving the corporate governance structure of the company, clarifying the company's own development strategy and pragmatic enterprise development foundation.
Listing has a series of strict requirements, especially the corporate governance structure and information disclosure system. In order to meet these requirements, enterprises must improve the transparency of operation and the level of corporate governance structure, so that enterprises can gradually evolve from a "rebellious enterprise" and a "family company" to a modern enterprise.
The process of enterprise restructuring and listing is the process of defining the development direction, improving corporate governance and realizing standardized development. Before the enterprise is restructured and listed, it is necessary to analyze the internal and external environment, evaluate the advantages and disadvantages of the enterprise, find the correct positioning and clarify the development strategy of the enterprise. In the process of restructuring, sponsors, law firms, accounting firms and many other professional institutions give advice to enterprises, and through a series of processes such as assets verification, help enterprises to clarify property rights relations, standardize tax payment behavior, and improve corporate governance and accounting firms.
In order to conform to the corporate governance structure of listed companies, external directors and strategic investors can be introduced, which can be used by the company and can also supervise and guarantee the company's operation and management.
After the company goes public, it should fulfill the strict information disclosure system and other legal requirements, which will increase the transparency of the company's operation, help prevent the occurrence of "insider control" and improve the efficiency of enterprise management.
3. Enhance the brand value and market influence of the enterprise, and enhance the company's position in the eyes of customers, suppliers and banks.
Public offering and listing has a strong brand communication effect, which plays a great role in brand building of enterprises, directly enhances the company's industry visibility and will get more attention. Because the operation of listed companies is quite transparent and standardized, it is more reassuring than that of non-listed companies, and customers, suppliers and banks will have more confidence in listed companies. Companies will be more likely to attract new customers, suppliers will be more willing to cooperate with you, and banks will give higher credit lines.
Listing makes the company more attractive to employees.
Listing on the exchange will make enterprises more attractive to high-quality employees and help enterprises recruit satisfied senior talents. In addition, after listing, the company's equity incentive plan will be more attractive to employees, which is conducive to attracting and retaining the best employees. When the company provides a dividend plan to outstanding management employees, the benefits of the company will be linked to the interests of enterprise managers, and the enthusiasm of employees will be improved.
5. Enhance the company's competitive advantage.
Companies with excellent performance, good growth and integrity will maintain their share prices at a high level. Not only can we raise a large amount of capital at a lower cost and expand the scale of operation, but we can also use stocks as a merger and acquisition tool to further cultivate and develop competitive advantages and strength, enhance development potential and stamina, and enter the channel of sustained and rapid development.
6. Benefits of the boss of a listed company
You can get rid of the private guarantee.
The withdrawal mechanism of investors. If the boss doesn't want to continue to run the company, he can quit directly by selling shares in the open market. At present, the shell price of listed companies is very attractive in the market.
Promote the property management of shareholders-through the establishment of family trust funds.
The level of contact with shareholders has improved.
Increase the liquidity of shareholders' assets. After listing, shareholders can increase asset liquidity through securities market transactions.
Reduce the boss's business risk. The company's business risks are shared by the public in the form of scattered shares, rather than the boss taking all the business risks alone.
The double growth effect of wealth.