Secondly, the wealth of major shareholders of listed companies has greatly increased. Before the company went public, its shares were worthless. After public listing, the company's share price will rise dozens, hundreds or even thousands of times. Listing is a machine for major shareholders to make wealth. Before listing, the company's share price is one yuan per share, after listing, the company's share price is tens or hundreds of yuan per share, and before listing, the company's share price may still have water. Therefore, listing is the best opportunity for the company's major shareholders to gain huge wealth quickly. More importantly, after listing, the company's shares are more valuable, and other financial institutions will provide lower-cost financing and provide more financing, thus solving the fund problem of the company's development.
Third, the company's listing is conducive to the promotion of the company's image. Listed companies are more likely to gain social trust, market recognition and user recognition, which is conducive to the company's access to a larger market and development.
Legal basis: People's Republic of China (PRC) Company Law.
Article 13 The legal representative of a company shall be the chairman, executive director or manager in accordance with the articles of association, and shall be registered according to law. Where the legal representative of the company changes, it shall go through the registration of change.
Article 14 A company may set up branches. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have legal person status, and its civil liability shall be borne by the company. A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.