Why does the company want to go public? I think the purpose of a company to become bigger and stronger is to go public. Many companies take the successful listing as their ultimate goal. So do all enterprises want to go public? There are mainly the following reasons:
(1) Going public can improve the financial situation.
Because once an enterprise is successfully listed, it can raise a sum of money through the stock market, which can bring huge liquidity to the company, make the company have more funds to carry out business, and make the enterprise bigger and bigger, thus improving the capital structure of the enterprise and enhancing its financial strength. This is the main reason for the listing of enterprises.
(2) It can improve the reputation of the enterprise.
There must be a big difference between listed companies and unlisted companies. Listed companies are well-known, giving other companies different views is conducive to the company's business development. Therefore, once listed, high reputation and good reputation are one of the main reasons why enterprises want to go public.
(3) You can use stocks to buy other enterprises.
When an enterprise goes public successfully, it becomes a joint-stock enterprise, and the shares belong to securities, so the shares are valuable. The acquisition of other companies by similar listed companies is not all cash transactions. Listed companies can acquire other companies by issuing stocks or buying stocks through the secondary market, which is one of the reasons why companies want to go public.
(4) Listed companies can motivate employees through stocks.
The shares of unlisted enterprises are generally not guaranteed, but once the enterprise is successfully listed, the shares of the enterprise are valuable. And listed companies can use these shares as rewards for employees to hold shares, so that more employees think that efforts are also for themselves, which will make more employees work hard.
These four reasons are the real reasons why enterprises want to go public.
Let's talk about the benefits of listing.
The above also analyzes the four benefits of listing: promoting the company's financial improvement; Improve corporate reputation and reputation; Use joint-stock enterprises to acquire other enterprises; You can use shares to reward employees and so on.
Of course, in addition to these four benefits, the real benefit of listing a company is that it can finance the company, which is the biggest benefit of listing a company. The second advantage is that there is an additional channel for cashing out, and major shareholders can cash out in case of emergency. The third advantage is that enterprises can mortgage loans, which belongs to a series of benefits such as secondary financing.
In short, it is very normal for enterprises to want to go public, because there are many advantages of listing, and the advantages outweigh the disadvantages. This is the reason why enterprises really go public.