First, the significance of listing enterprises
Joint-stock system is a kind of enterprise organization form that has appeared since modern times, and it is the product and requirement of the development of market economy. Compared with other organizational forms such as family business and partnership business, it has obvious advantages: through equity diversification, it effectively disperses the huge risks brought by centralized investment; By accumulating scattered capital into huge capital, it meets the needs of socialized mass production; Through the free trading of stocks, the flow of capital and the optimal allocation of resources can be realized.
1. Using the capital market can promote the standardized development of small and medium-sized enterprises.
The process of enterprise restructuring and listing is the process of defining the development direction, improving corporate governance, consolidating basic management and realizing standardized development. Before the enterprise is restructured and listed, it is necessary to analyze the internal and external environment, evaluate the advantages and disadvantages of the enterprise, find the correct positioning and clarify the development strategy of the enterprise. In the process of restructuring, sponsors, law firms, accounting firms and many other professional institutions give advice to enterprises, and through a series of processes such as assets verification, help enterprises to clarify property rights relations, standardize tax payment behavior, improve corporate governance and establish a modern enterprise system. After the reorganization and listing of services, we will strive to achieve "standardization" and "continuous standardization" around the capital market. At the same time, the delisting risk and merger risk after listing can make executives more honest, diligent and conscientious, and promote the sustainable and standardized development of enterprises. After listing, enterprises can establish a perfect incentive mechanism with equity as the core, attract and retain core managers and key technical talents, and lay the foundation for the long-term stable development of enterprises.
2. Using the capital market can enable enterprises to obtain long-term and stable funds. The research of the International Finance Corporation of the World Bank shows that most of the development funds of private enterprises in China come from owner's capital and internal retained earnings, while corporate bonds and external equity financing account for less than 1%. China enterprises are facing a serious bottleneck of direct financing. Direct financing by issuing stocks can break the financing bottleneck, obtain long-term stable capital funds and improve the capital structure of enterprises; The unique mechanism of "risk * * * bearing and income * * * bearing" in equity financing can maximize the return on equity capital; Low-cost sustainable financing can also be achieved through various financial instruments, such as rights issue, additional issuance and convertible bonds. For example, when Shenzhen Vanke 1988 was listed for the first time, the financing amount was 28 million yuan. Since then, through six refinancing, * * * financing 5 1 100 million yuan. From a little-known company to a real estate giant with total assets of nearly 10 billion, the continuous and stable supply of funds plays an important role. Different from indirect financing methods such as bank loans, direct financing does not have the pressure of repaying principal and interest. Enterprises will be able to invest more research and development funds, and the listing of small and medium-sized enterprises will effectively enhance the motivation and ability of entrepreneurial innovation.
3. Listing can effectively enhance the brand value and market influence of enterprises. Traditionally, there are three main ways for enterprises to spread their brands or images: word of mouth, advertising and marketing (or public relations). In fact, the brand communication effect of public offering is stronger. Entering the capital market shows that the growth, market potential and development prospects of small and medium-sized enterprises have been recognized, which in itself is a symbol of honor. At the same time, restructuring and listing plays an important role in brand building of small and medium-sized enterprises. Roadshows and prospectuses can publicly display corporate image; The daily trading market and the rise and fall of the company's stock have become the company advertisements that millions of investors must watch; The media's follow-up reports on the new business expansion and new trends of capital market operation of listed companies can attract the attention of thousands of investors; Real-time investigation and industry analysis by institutional investors and securities analysts can further tap the potential value of enterprises.
4. The listing of enterprises can discover the company's value and realize the listing of value-added shares, which is equivalent to providing a trading platform for the company to "securitize" assets, enhancing the liquidity of the company's shares, helping to discover the company's value through open market transactions, realizing the value-added of the company's shares and bringing wealth to the company's shareholders and employees. The change of stock price after listing has formed a market evaluation mechanism for the company's performance, and has also become an important driving force for the company's merger and acquisition, which has formed an effective spur to the company's management. For companies with excellent performance, good growth and integrity, their share prices will remain at a high level, which can not only raise a large amount of funds at a lower cost and expand the business scale, but also use stocks as a merger and acquisition tool to further cultivate and develop the company's competitive advantage and strength, enhance the company's development potential and stamina, and enter the channel of sustained and rapid development. For companies with poor management and poor performance, under the guidance of the price mechanism, capital flows to good companies and gradually eliminates poor companies. The falling stock price makes the company face the fate of being acquired at any time.
Second, the advantages of listing of domestic enterprises
1. First, the issue price and refinancing advantages, the domestic issue risk is relatively low. The relationship between supply and demand in domestic and foreign markets is very different, and domestic stocks can be actively subscribed by domestic investors. Small and medium-sized enterprises, in particular, often have the risk of insufficient subscription by investors when issuing shares abroad, and may even fail to issue shares. Second, local investors have a better understanding of the company's operating environment and products, and the value of the company's shares can be easily and truly reflected. Third, local investors' understanding of the company is conducive to improving the liquidity of the company's shares, so the average daily turnover rate of domestic companies' shares is much higher than that of overseas listed China companies. Fourth, the price-earnings ratio of small and medium-sized enterprises in the domestic market is generally around 15 ~ 20 times, and the issue price is about twice that of overseas markets. Moreover, due to strong liquidity, the average daily turnover rate of small and medium-sized board companies is 4.95%, and the average price-earnings ratio of the secondary market is about 30 times, so it is easy to refinance with listed companies.
2. Cost advantage First of all, the initial public offering cost is low. According to the charging standard of China's issuance and listing, the underwriting fee of securities generally does not exceed 3% of the financing amount, and the overall listing fee generally does not exceed 5% of the financing amount. Although the securities underwriting fee exceeds the charging standard, it is still lower than the overseas market as a whole. Moreover, the securities underwriting fees charged by domestic brokers are gradually decreasing. Second, the annual continuous payment is relatively low. The audit fees and listing fees paid by domestic listed companies to the exchange are far lower than those paid to overseas markets. Moreover, the maintenance cost of listing in overseas markets is high, and it is necessary to pay a lot of fees to information disclosure contacts and local financial controllers.
3. Financing advantages 1. Domestic IPO has the advantage of financing amount. Due to the differences in market conditions and investor recognition, the price of domestic issuance is relatively high. Secondly, it has the advantage of refinancing. Because of the good liquidity and high price-earnings ratio of domestic listed stocks, it has created conditions for the company to refinance. And because of the high share price, under the same financing amount, the number of new shares issued is small, which is conducive to ensuring the controlling position of the original shareholders.
The advantages of advertising will greatly enhance the company's popularity in China. First of all, domestic listing is an important part of corporate brand building. Becoming a domestic listed company is itself a symbol of honor. The domestic capital market requires higher assets quality, scale and profitability of enterprises. Companies that choose to go public should be companies with good quality and promising prospects, which can show the competitiveness of enterprises to a certain extent and will undoubtedly greatly enhance the image of enterprises. Secondly, there are nearly 80 million investors in China. For enterprises whose product market is mainly in China, listing in China can let more people know about the company and its products, build trust and bring convenience to the company's various business activities.
Third, small and medium-sized enterprises should bear more social responsibilities when they go public.
After becoming a listed company, small and medium-sized enterprises are related to the interests of hundreds of millions of investors, the stability of the securities market and even the stability of society, so they must be subject to more constraints and assume more social responsibilities. The social supervision of the capital market requires enterprises to accept the supervision of investors, regulators and the public, and operate in the sun to reduce the randomness of the company's operation; The continuous supervision of sponsors requires enterprises to accept the continuous supervision of sponsors and urge enterprises to earnestly fulfill their commitments; The information disclosure system requires enterprises to disclose periodic reports and interim reports in a timely, accurate, complete and true manner to realize financial standardization and transparency; The price mechanism of the stock market requires enterprises to continuously improve their investment value, constantly optimize their development strategies, and improve their competitiveness and sustainable development potential; Integrity management mechanism requires enterprises to strengthen constraints, stress integrity, operate according to law, and standardize operations. There are advantages and disadvantages for enterprises to go public. Therefore, before listing, enterprises must analyze the advantages and disadvantages of listing and seriously consider whether listing conforms to the enterprise development plan.