The listing of enterprises is a highly professional work and a complex system engineering. In the process of listing, many tasks are carried out at the same time, and more than 40 kinds of documents need to be compiled. After the approval of dozens of competent institutions and departments, any slight deviation in any link will affect the whole listing process, so we must treat the whole listing process with caution.
In the process of enterprise share reform and listing, it is an important content of enterprise share reform and listing to hire financial advisory institutions, which is also an international practice. Professional "listed financial consultants" institutions are not expert consultants in accounting, but institutions that provide investment banking services for enterprises in capital operation. Its main responsibility is to assist enterprises to make investment and financing decisions and capital operation of enterprises. Financial advisory institutions assist enterprises to complete the planning, research and operation of strategic activities such as investment, financing, private placement, merger, reorganization, public relations, financial management and tax planning, so as to ensure the implementation of the overall development strategy of enterprises. High-level and high-quality financial advisory institutions are important intermediaries to meet the successful listing of enterprises.
A listed company refers to a joint stock limited company whose shares are listed and traded on the stock exchange with the approval of the securities administration department authorized by the State Council or the State Council. The so-called unlisted company refers to a joint stock limited company whose shares are not listed and traded on the stock exchange. A listed company is a joint stock limited company, which must meet certain conditions besides being approved to be listed and traded on the stock exchange.
There are many reasons why a company meets the listing requirements but does not go public. Personally, it is mainly the cost of listing (intermediary fees such as investment bank/law firm/accounting firm, the cost and time cost of company restructuring, etc. ) and the cost of maintaining listing (continuous information disclosure and supervision).
If the company has sufficient cash flow, diversified financing channels and is unwilling to disclose too much operating and financial data, it is a wise choice not to go public.