The advantages of listing on the New Third Board are: First, IPO, that is, initial public offering; Second, the appreciation of wealth, enterprises will have a price-earnings ratio after listing on the New Third Board, which is where wealth lies; The third is the realization of value. When you need money after hanging the card, you only need to sell part of the equity, and so on.
1, transfer to IPO
When it comes to the benefits of listing the New Third Board, we have to mention IPO. For entrepreneurs with listing dreams, this is the greatest attraction and the greatest value to the enterprise. Although the specific rules of IPO transfer of the new third board listed companies have not yet come out, it is very clear that it is necessary to build a transfer mechanism between the two to provide a green channel for the new third board listed companies. It is precisely because of the emphasis on the IPO of the transfer board that the relevant institutions, together with financing and private placement, list it as a key concern when designing the listing plan of the New Third Board for enterprises. As a part of the multi-level capital market, the "New Third Board" has the function of docking the main board and the Growth Enterprise Market, and is a green channel leading to a higher level capital market. It is beneficial for enterprises to meet the requirements of listing on the main board faster. To discuss the benefits of the listing of the New Third Board, we have to mention the transfer IPO. For entrepreneurs with listing dreams, this is the greatest attraction and the greatest value to the enterprise. Now the competent authority of the New Third Board has been changed from China Securities Association to China Securities Regulatory Commission. Although the specific details of the IPO of the New Third Board listed companies have not yet come out, it is very clear that it is necessary to build a transfer mechanism between the two to provide a green channel for the IPO of the New Third Board listed companies. It is precisely because of the emphasis on the IPO of the transfer board that when we design the listing plan of the New Third Board for enterprises, we list it as a key concern together with financing and private placement.
2. Wealth appreciation
Before the listing of the New Third Board, how much the enterprise is worth is not fair. However, after the company goes public, the market gives the company a valuation and there will be a price-earnings ratio. Now the average price-earnings ratio of the New Third Board is around 18 times. Why are all the people on the rich list so rich? This is because the value of the assets they own has been magnified. Zoom in on what It is the price-earnings ratio of the capital market.
Step 3 attract investors
One of the biggest difficulties for small and medium-sized enterprises is financing, and the first difficulty encountered in financing is how to attract and contact investors. A company landed on the New Third Board and obtained the implicit credit guarantee of brokers, accountants, lawyers and share transfer companies. Since the company's information has been publicly displayed on a national platform, if the company is well managed, it will undoubtedly be powerful for it to find investors. The exposure of enterprise information on the public platform means accepting the supervision of the public. Will investors easily doubt you at this time? At least your trust is much higher than that of non-public companies. The current situation is that many PEs have included the new three-board enterprises in the project source. Once they found the opportunity, they didn't even wait to go public. Some enterprises get investors' investment because they want to go public before listing. In this case, the enterprise can obtain funds earlier, and the price for investors to enter the enterprise is lower, which is beneficial to both sides.
4. Value realization-discover the value of listed companies and realize the value of shareholders' wealth.
Business owners need to borrow money before listing, and when they need money after listing, they only need to sell part of their shares. After the implementation of the market maker system in August, this kind of transaction will become more and more convenient. Because of the price-earnings ratio, you will get a big premium when trading. In addition, the New Third Board also facilitates the withdrawal of the original shareholders. Partners and employees can easily sell their shares in the market and realize a premium exit.
Of course, the premise is that the sales restriction period has passed. We can bring ourselves some wealth gains through cash flow. Of course, the CSRC has regulations. For example, bosses, executives and directors of a company can release their shares at different times and in different proportions. Most of the cash in circulation now is transferred by agreement. As a national OTC market, shares of joint-stock companies can circulate freely in the New Third Board. Listed companies have gained a liquidity premium, and the valuation level will be significantly improved compared with that before listing. With the increase in the number of new third board listings, more venture capitalists and P listed the new third board in the database to be invested, and even special new third board investment funds and M&A funds appeared.
Providing an efficient and orderly transfer platform for enterprise shares is conducive to improving the liquidity of shares, realizing the function of value discovery, perfecting the capital structure of enterprises, and improving their own anti-risk ability and development potential. The share trading market is the company's share-trading market. Through trading behavior, we can discover the enterprise value and provide a convenient platform for investors to enter high-quality companies and shareholders to flow and quit. Before listing, the value of an enterprise is difficult to be discovered by the outside world. Even if the enterprise has a very good development prospect, only people who are closely related to the enterprise have a certain understanding, and the outside world has no way of knowing it, and it is even more difficult to find its value. Through the extensive publicity of listing and capital market platform, the core value of enterprises can be tapped, and the true value of enterprises will be widely recognized by society. After listing, the measurement standard of shareholders' equity has changed.
The original owned assets can only reflect the value through the price of asset appraisal, and after securitization, the shareholder value is usually directly reflected through the price of secondary market transactions, and the shareholder value can be reflected to the greatest extent; Li Ka-shing has been the richest man in Asia for many times, and its listed "Hutchison Whampoa" has contributed greatly. Mr. and Mrs. Lee quickly became the richest man in China through listing on the Shanghai Stock Exchange, which also highlighted the magic of revaluation of the capital market.
5. Property rights financing
Financing should be said to be the biggest role and benefit of the New Third Board for listed companies. The New Third Board is a "board" that allows enterprises to conduct equity transactions. It does not require enterprises to provide mortgage or sign gambling agreements. More importantly, it can not only help enterprises to complete financing quickly, but also have the largest capital market credit for financing. For most private enterprises, capital is a major problem, so the biggest advantage of listing is financing. In the process of going to the New Third Board, financing is divided into two parts: equity financing and debt financing. Equity financing is mostly fixed, that is, some investment institutions can invest in our company. This is tantamount to opening up a new financing channel.
The second financing method is debt financing, because most of us now get bank loans through mortgage. But after you go public, you can get credit loans, and through the third board, we can also increase credit to banks. In addition, the creditor's rights can also be used as equity pledge to realize equity and creditor's rights financing. After listing, enterprises can directly finance specific objects according to the needs of business development. Bond financing, listed companies can carry out debt financing in the national OTC market through corporate bonds, convertible bonds and private debt of small and medium-sized enterprises. With lower-cost bank loans, the equity valuation of the company after listing will be significantly improved, and the bank's awareness and attention to the company will also be significantly improved. It will be easier to obtain loans from commercial banks at lower interest rates, and financial institutions will recognize the market value of equity, thus obtaining financing facilities such as share mortgage loans.
6. Private placement-Enhance borrowing capacity and realize high-quality private placement.