What are the benefits of listing? What are the requirements for listed companies?

The positive effect of a company going public is 1. Realize the value enhancement of original investors: From the world rich list to China rich list, those rich people at the top of the list have one thing in common, that is, most of their assets are shares of listed companies. Once an enterprise goes public, it can bring double benefits to the original investors. The first income is book income. For example, China Medium-term Investment Co., Ltd. had a total share capital of 300 million shares before listing, with total assets of 654.38 billion yuan, total liabilities of 600 million yuan and net assets of 400 million yuan. It is estimated that the profit will be 200 million yuan next year. You hold 50% equity of China Medium-term Investment Co., Ltd., and your original investment value at this time is-400 million yuan * 50% = 200 million yuan. China Medium-term Investment Co., Ltd. issued 654.38+billion shares after listing, calculated according to the market price-earnings ratio of 20 times, that is, the earnings per share was 0.5 * 20, the issue price per share was 654.38+00 yuan, and the raised funds were 654.38+00 billion yuan. At this time, the overall market value of China Medium-term Investment Co., Ltd. is-total share capital * price per share =400 million shares * 10 yuan/share = 4 billion yuan (assets soared from 400 million before listing to 4 billion after listing). At this time, the book value of your shares rose from 200 million yuan to1500 million yuan, which is the book income brought by the listing of enterprises. Secondly, the original investor transfers the shares. For example, if the market price of your stock reaches a high of 15 yuan per share, you will reduce your holdings by 20 million shares and gain 300 million yuan in cash. According to your original investment, only 20 million shares were invested, and your cash income reached 280 million. Measured by the return on investment, the return on investment has reached 14 times (from 20 million yuan to 280 million yuan). 2. The development of low-cost financing enterprises needs sufficient capital, and how to obtain capital has become the primary problem for entrepreneurs to think about. There are three ways for enterprises to obtain capital: one is to accumulate their own profits, the other is to borrow money from creditors, and the third is to raise capital from investors. Raising equity from investors is the lowest cost financing method. First of all, in terms of time cost, equity financing saves more time than profit accumulation. Secondly, in terms of financial cost, equity financing does not reduce the company's pre-tax profit. From the perspective of the whole company, the financial cost of the company is much lower than the cost of debt financing. Therefore, the listing of enterprises can enable companies to obtain low-cost financing. 3. Gaining a strong purchasing power in the capital market The development of enterprises depends not only on mergers and acquisitions between enterprises, but also on different motives. For example, the merger of Mercedes-Benz and Chrysler, the merger of Gome and Yongle Electric, and some are aimed at eliminating competitors, such as the merger of Boeing and McDonnell Douglas. Some of them are for the healthy development of enterprises, such as the merger of China Yahoo and 372 1. In any case, enterprises need the strength of capital, talents, technology and other aspects to make acquisitions, and the listing of enterprises will enable enterprises to obtain strong acquisition capabilities in the capital market. The standardized capital market operation modes such as stock exchange acquisition, private placement and tender offer have greatly enhanced the attractiveness of the acquirer to the acquired party. 4. Improving enterprise credit Enterprise credit is the basis for enterprises to conduct foreign transactions in market economy activities. Enterprises with strong credit, such as foreign borrowing, supply and cooperation, are more likely to conclude transactions, reduce transaction costs and gain stronger competitiveness. Because of the standard corporate governance, scientific management and easy financing, it is easy to obtain a higher credit evaluation. 5. Enhance enterprise cohesion The competition of enterprises is essentially the competition of talents. The sense of belonging and honor of enterprise employees will be improved, and their confidence in the enterprise will be greatly increased. That is, to stabilize existing employees and attract talents. Therefore, the listing of enterprises is conducive to enhancing the competitiveness of talents of enterprises. 6. Enhance the visibility and reputation of the enterprise. The popularity and reputation of enterprises are also important aspects of enterprise competition. It can increase the image and brand competitiveness of enterprises, win the favor of consumers and improve the relationship between the public and the public. The listing of large state-owned enterprises such as China Petroleum and Bank of China, as well as private enterprises such as Baidu and Suning, greatly enhanced the visibility of enterprises, established a good public image and became valuable assets of the company. The listing risk of the company is 1, and the control right of the company is weakened. The essence of listing a company is to obtain investors' capital investment by transferring the company's equity. Therefore, the listing of the company will make the original shareholders' shareholding ratio of the company decline, which will lead to the weakening of the original shareholders' control. The original shareholders changed from simple control of the company or absolute control to relative holding. On the other hand, due to the pressure of mergers and acquisitions in the capital market, the shares publicly issued to the public may be acquired by the acquirer, which may lead to the competition for control with the original controlling shareholder and even make the acquirer gain control of the company. The weakening of control rights is a problem that every enterprise entering the capital market should consider. 2. The company needs to pay the listing cost. Listing a company is not only a process of financing, but also a process of constantly paying costs. This kind of cost mainly comes from three aspects: on the one hand, the cost that the company spends to meet the listing conditions mainly includes the cost of asset-liability restructuring, the cost of hiring professional managers, the increased upfront financial cost to meet the performance requirements of enterprises, and the cost of standardizing the establishment of corporate governance structure. Secondly, the direct expenses incurred by the company for listing include financial consultancy fees of investment banks, sponsorship fees of sponsors and lead underwriters, legal consultancy fees of lawyer affairs, audit fees of bookkeeping affairs, evaluation fees of assets appraisal affairs, public relations fees of financial public relations companies, audit fees paid by securities regulatory authorities, listing fees paid to exchanges, printing fees of printing companies, and media announcement fees. Most of these expenses need to be paid by enterprises in order for the company to obtain successful financing. Third, the expenses incurred by an enterprise to maintain its listing include the annual listing expenses paid to the exchange, the expenses of hiring perennial legal advisers and auditors, the expenses of holding regular meetings, the expenses of issuing announcements and the expenses incurred to meet the changes in listing requirements. These expenses increase the cost of the company and should be calculated reasonably by each listed company. 3. Increased supervision caused by the listing of companies In order to protect the interests of investors, the legislatures of various countries have formulated complete laws and regulations to supervise the listing of companies, and established a series of supervision systems including securities regulatory agencies, stock exchanges and investor litigation. Three. Conditions for listing securities The types of securities permitted to be listed by law mainly include stocks and bonds. Except for exempted securities such as government bonds, which can be directly traded on the exchange according to the notice of the competent authority, the listing of stocks and corporate bonds must meet the statutory conditions, and can only be listed after an application is submitted by the issuer, reviewed by the exchange and approved by the competent authority. 1. Conditions for listing of shares According to Article 152 of the Company Law of China, a joint stock limited company applying for listing of shares must meet the following conditions: (1) The stock has been approved by the securities management department of the State Council and has been publicly issued to the public. In other words, the prerequisite for a joint stock limited company to become a listed company is that the company's shares have been publicly issued to the public, and it is a joint stock limited company established through fundraising. If it is a joint stock limited company initiated, it cannot directly become a listed company. (2) The total share capital of the company is not less than 50 million yuan. The total share capital here includes the sum of the voting rights issued to the public and the shares subscribed by the promoters and issued to specific investors, not just the shares issued to the public. (3) It has been in business for more than 3 years and has been making profits continuously in the last 3 years. Investors should analyze the companies they want to buy shares in order to understand the management, financial status and profitability of listed companies. At the same time, the securities management department should also check the company's situation. This is an analysis of his company for a long time. If the company has just been established, these situations will be out of the question. The opening time refers to the date when the administrative department for industry and commerce approves the establishment of the company. The profit standard is not stipulated, but it must be calculated continuously. For the special protection of state-owned assets, special provisions have been made for companies that were established after the original state-owned enterprises were rebuilt according to law or after the implementation of the company law, and the main sponsors were large and medium-sized state-owned enterprises. As long as the original state-owned enterprises and large and medium-sized state-owned enterprises as sponsors have made profits for three years, they can apply to become listed companies, and they are not limited by the opening time of more than three years. (4) The number of shareholders holding shares with a face value of more than RMB 65,438+0,000 is not less than 65,438+0,000, and the shares publicly issued to the public 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 shares issued to the public is above 65,438+05%. Listed companies are open economic organizations, whose purpose is to absorb social capital in many ways, and shareholders enjoy rights and assume obligations according to their shares in the company's total share capital. In order to prevent a few major shareholders from manipulating the company, realize the decentralization of listed companies' equity, and prevent major shareholders from infringing on the rights and interests of minority shareholders, it is necessary to stipulate the equity composition of listed companies. Therefore, the Company Law stipulates that the number of shareholders holding shares with a par value of 1 1,000 yuan or more is less than 1 1,000. The face value of the stock here is 1000 yuan, which is not limited by the price paid by shareholders when they buy the stock. At the same time, some shares of listed companies are publicly issued to the public, and some are subscribed by sponsors and issued to specific investors. Sponsors and specific investors often have an advantage over ordinary investors. Therefore, in order to safeguard the interests of ordinary investors, it is necessary to stipulate the proportion of shares between them. (5) The company has no major illegal acts in the last three years, and its financial and accounting reports have no false records. Listed companies should be enterprises with high reputation, and their production and operation should be carried out according to law. Illegal acts will lead to corporate crisis, so listed companies should have no major illegal acts. A major illegal act refers to an act that goes beyond the scope of business and operates by fraudulent means. These acts have to bear great legal responsibilities, such as warnings and revocation of business licenses. Of course, companies that have violated the law before can also become listed companies. Financial accounting report means that investors know about the company. If it is false, it is a major illegal act and a deception to investors. Investors can't know the real situation of the company, and naturally they can't become listed companies. (six) other conditions stipulated by the State Council. The State Council is the highest administrative organ in China, and has the right to formulate administrative regulations and stipulate other conditions for listed companies according to China's economic development and comprehensive consideration of the whole economy. When a company applies to the the State Council securities regulatory authority for stock listing, it shall submit the following documents: ① listing report; (2) Resolutions of the shareholders' meeting applying for listing; (3) Articles of association; ④ Business license of the company; (five) the financial and accounting reports of the company in the last three years or since its establishment, which have been verified by a statutory verification institution; 6. Legal opinions and letters of recommendation of the securities company; ⑦ The latest prospectus. After the application for stock listing and trading is approved by the the State Council Securities Regulatory Authority, the issuer shall submit the approval documents and the above-mentioned relevant documents to the stock exchange. A stock exchange shall, within 6 months from the date of receiving the above-mentioned documents submitted by the stock issuer, arrange the listing and trading of stocks. After the application for stock listing and trading is approved by the stock exchange, the listed company shall announce the approved stock listing related documents five days before the stock listing and trading, and place the documents in the designated place for public inspection. In addition to the above-mentioned listing application documents, the listed company shall also announce the following matters: a, the date when the shares are allowed to trade in the stock exchange; B the list of the top 10 shareholders who hold the most shares of the company and their shareholding amount; Names of directors, supervisors, managers and relevant senior management personnel and their holdings of company stocks and bonds. According to the provisions of Article 158 of China's Company Law, if a listed company has one of the following circumstances, the the State Council securities management department shall terminate its stock listing. Therefore, stock exchanges all over the world have made strict regulations on the listing of joint-stock companies. The listing of joint-stock companies generally requires strict qualification examination, which meets the listing standards and is qualified for listing after approval. The listing standards of joint-stock companies generally include: (1) The amount of capital generally stipulates that the paid-in capital of listed companies shall not be lower than a certain value. (2) The performance records that meet the requirements mainly examine the profitability of the listed company. If profitability is reflected by the ratio of after-tax net profit to total capital, the ratio shall not be lower than a certain value. (3) Solvency is generally reflected by the ratio of current assets to current liabilities in the latest year, and this ratio also has a specified value. (4) The number of shareholders of listed companies with decentralized shares shall not be less than a certain value. This provision is mainly to ensure the liquidity of stocks and prevent the situation that the major shareholders may infringe upon the interests of the minor shareholders when the stocks are concentrated in the hands of the minority shareholders. According to these standards and general requirements, companies applying for listing should provide the following information: ① the business nature and product catalogue of the company. (2) Company securities before the listing of shares. (3) Accounting statements reflecting the financial situation in the past few years. ④ A copy of the Articles of Association. ⑤ Statement of equity and corporate debt. Under strict regulations, joint-stock companies that can be listed on the stock exchange actually account for only a small part. In China, according to the relevant provisions of the Company Law of People's Republic of China (PRC) and the Interim Regulations on the Administration of Stock Issuance and Trading, a joint stock limited company must meet the following conditions when applying for stock listing: (1) The stock has been approved by the securities management department of the State Council and has been publicly issued to the public. (2) The total share capital of the company is not less than 50 million yuan. (3) The company must be established for more than 3 years, and it has been profitable continuously in the last 3 years. Where the original state-owned enterprises are reorganized and established according to law, or the newly established companies are reorganized and established as joint stock limited companies after the implementation of the Company Law of People's Republic of China (PRC), and the main promoters are large and medium-sized state-owned enterprises, the establishment time can be continuously calculated. (4) No less than 65,438+0,000 shareholders hold shares with a face value of more than 65,438+0,000 yuan, and the shares publicly issued to the public are not less than 25% of the total shares of the company; If the company's total share capital exceeds 400 million yuan, the proportion of shares publicly issued to the public shall not be less than 15%. (5) The company has no major illegal acts in the last three years, and its financial and accounting reports have no false records. (6) Other conditions stipulated by national laws, regulations and rules and the exchange.