What is IPO?
Initial public offering (IPO), referred to as IPO. Refers to the first time that an enterprise or company (joint stock limited company) publicly sells its shares to the society. Generally speaking, once the initial public offering is completed, the company can apply for listing on the stock exchange or quotation system.
Benefits of IPO:
For enterprises, IPO listing can raise funds and attract investors, which is very helpful to improve liquidity. Enterprise visibility and employee identity have been improved, enterprise system has been improved, and enterprise management has become more convenient. However, IPO listing is also a complicated work, and the preparation is as short as one year and as long as three years.
Enterprise IPO listing process:
-When an enterprise has the idea of going public, it must first set up a preparatory group. Enterprises need to hire securities companies, accounting firms, law firms and research institutions, among which the leading institution for listing enterprises is securities companies. Among them, the securities company is responsible for sponsorship and underwriting; An accounting firm issues an enterprise audit report; After the law firm issues a legal opinion, the company to be listed needs to go through five levels.
1, reorganization and establishment of joint-stock company
Before listing, some companies to be listed operated in the form of limited liability companies. In order to meet the requirements of subject qualification in China, enterprises need to change their organizational form into joint stock limited companies.
2. Due diligence and consultation
Due diligence is a process in which intermediaries investigate the enterprises to be listed from three aspects: business, finance and law, with the purpose of evaluating whether the enterprises meet the listing conditions. Then help enterprises meet the regulatory requirements of issuance audit through listing counseling.
3. Preparation and application of application documents
After determining that all indicators meet the listing requirements, enterprises and intermediaries should make various application documents (issuance application prospectus, etc.). ) according to the requirements of the CSRC.
4. Examination of application documents
After that, there is an intense review process, which usually takes 3-9 months.
5. Issuance and listing
Whether the enterprise can successfully pass the review including sustainable profitability, related party transactions, financial issues, compliance issues, project rationality, customer trust issues, etc. , it can start pricing, subscription and other processes, waiting for the final listing.