Benefits:
1. Shares can be circulated to realize financing. To go public, the essential purpose should be to trade stocks. For example, it turned out that a small technology company had core technology, but was short of money, so it asked the bank to borrow money. Banks only look at your assets and total income scale, of course, he has no advantage. He can be listed, so investors in the New Third Board can pay for his shares if they are optimistic about the company. He can get money by transferring a little equity, which is convenient for enterprise financing.
2. Improve corporate governance. Because to go public, we must first meet a set of requirements of the exchange. Therefore, the companies to be listed will be sorted out from the inside out by the sponsoring brokers, and all annual reports, legal relationships and asset relationships need to be audited by securities companies, accounting firms and law firms. In this way, small companies that used to be mom-and-pop stores can sort themselves out from the inside out, and the board of directors and board of supervisors system that might not have existed originally was established. Although these regulations are lower than the motherboard, they are similar in type. After this baptism, even if the enterprise enters the capital market, it will be easier to go to the main board IPO if it develops well in the future.
3. Improve credit and attract banks, PE. Although the New Third Board Exchange (the national share transfer system for small and medium-sized enterprises) said that it does not require listed enterprises to make profits, but only requires enterprises to operate in a standardized manner and have clear business, it is still a set of audit procedures of the CSRC, which is still relatively strict. At least the listed companies here are less likely to make false accounts or have poor operating conditions, so that once the companies come to the market, banks will take a high look. Many banks will stare at the New Third Board, and which company will be listed on the New Third Board. Banks that didn't like to take care of these enterprises will take the initiative to come to them, hoping to provide them with some loan services, which also solves the capital needs of enterprises from another level. Similarly, if the quality of these enterprises is good enough, PE will feel that there is hope for future IPOs, and will take the initiative to apply for shares, which will also bring funds to enterprises.
Disadvantages:
1, with cost. After all, there are some costs to listing. Although the transaction of the New Third Board is based on the principle of service, and the fees charged are much lower than those of the main board, there is still a listing fee of 30-65438+10,000 yuan, and the listing fee is 30-65438+10,000 yuan per year. In addition, when listing, it will cost hundreds of thousands of accountants and law firms to audit, and there are still costs.
2. The financing function is limited, but it is exposed to stricter supervision. At present, the New Third Board cannot publicly issue new shares, but can only issue them in a targeted way, far from the ability of IPO to make money. However, there are many requirements for information disclosure and auditing of enterprises, so it is more difficult to make some false accounts and avoid some taxes. And information disclosure may also make some enterprises feel uncomfortable. While listing enhances popularity, it may also attract the attention of the media and society. This is a double-edged sword. If it is handled well, it may bring benefits to the enterprise, but if it is not handled well, it may also bring public relations crisis to the enterprise. Of course, in theory and in the long run, standardizing governance and strict auditing are what enterprises should do.
From: Hundred Funds and Three Boards Encyclopedia