Why do companies need share reform when they go public?

Investors generally know that new shares will be listed, but we all know that enterprises will be listed after the share reform. In fact, we just need to know what share reform is. So, what are the benefits of stock reform and listing? How long will it take for enterprises to go public after the share reform? The following is an introduction to the relevant content.

1. What does it mean to go public after the share reform?

Share reform refers to the share-trading reform of listed companies, which is a process of eliminating the differences of share transfer system in A-share market through the interest balance negotiation mechanism between non-tradable shareholders and tradable shareholders. The significance of share reform lies in the improvement of the status of shareholders of tradable shares, the rights of tradable shares are superior to those of non-tradable shares, the tradable shares get rich material returns and the company's material returns are improved.

Second, why do companies need share reform when they go public?

If an enterprise wants to go public, it must attract new shareholders to invest on a large scale. In the future, stocks will change hands frequently, and shareholders will change every day. In this business model, it is impossible to fully consider the relationship between shareholders, and what shareholders themselves look like, think and have, which has little impact on enterprises in theory. On the contrary, it is whether the shareholders' money is in place and the amount has a great influence on the enterprise. Obviously, the enterprise form of joint venture is more suitable for listed companies to raise funds publicly and trade the stock market on a daily basis.

Therefore, before listing, it is necessary to change from the enterprise system inclined to joint venture to the joint stock limited company system inclined to joint venture.

3. How long will it take to go public after the share reform?

After the share reform of domestic companies is completed, it is common to report to the local provincial securities regulatory bureau for "listing counseling". Generally, this time is 6- 12 months, the shortest is 3 months, and the longest counseling period is 18 months. Next, I will report the listing materials to the CSRC, and the materials will be reviewed by the audit committee. After the approval, I went down and listed. This time will take almost half a year.