Going public is a rite of passage for a company. What are the benefits of going public and not going public?

The ancient Greek philosopher, mathematician, physicist and scientist Archimedes said: "Give me a fulcrum and I can shake the entire earth."

For enterprises, this fulcrum is restructuring and listing.

Through joint-stock reform and listing, outstanding companies can develop rapidly with the help of the capital market and become business giants and industry banners.

1. The significance of enterprise listing. Joint-stock system is a form of enterprise organization that has emerged in modern times. It is the product and requirement of the development of market economy.

Compared with other organizational forms such as family businesses and partnerships, its advantages are obvious: through equity diversification, it can effectively disperse the huge risks caused by concentrated investment; by accumulating dispersed capital into huge capital, it can meet the needs of socialized mass production.

; Through the free trading of stocks, the flow of capital and the optimal allocation of resources are realized.

1. The use of capital markets can promote the standardized development of small and medium-sized enterprises. The process of enterprise restructuring and listing is a process of clarifying development directions, improving corporate governance, consolidating basic management, and achieving standardized development.

Before a company is restructured and listed, it is necessary to analyze the internal and external environment, evaluate the company's strengths and weaknesses, find the correct positioning, and clarify the company's development strategy.

During the restructuring process, many professional institutions such as sponsors, law firms, and accounting firms provide advice to enterprises, and through a series of processes such as asset clearance and capital verification, they help enterprises clarify property rights relationships, standardize tax payments, improve corporate governance, and establish modern

Enterprise system.

After the services are reorganized and listed, we must focus on the issuance and listing standards of the capital market and strive to achieve "standards" and "continuous compliance".

At the same time, delisting risks and post-listing merger and acquisition risks can make executives more honest, diligent, and conscientious, and promote the sustainable and standardized development of enterprises.

After listing, companies can establish a complete incentive mechanism with equity as the core to attract and retain core managers and key technical talents, laying the foundation for the long-term and stable development of the company.

2. Using the capital market can enable enterprises to obtain long-term and stable capital funds.

Research by the International Finance Corporation of the World Bank shows that most of the development funds of China's private enterprises come from owner's capital and internal retained earnings, while corporate bonds and external equity financing account for less than 1%.

Chinese companies face serious direct financing bottlenecks.

Direct financing through the issuance of stocks can break financing bottlenecks, obtain long-term stable capital funds, and improve corporate capital structures; the unique "risk-only, return-taking" mechanism of equity financing can be used to maximize equity capital returns

; Low-cost continuous financing can also be achieved through various financial instruments such as rights issues, additional issuances, and convertible bonds.

For example, when Shenzhen Vanke went public for the first time in 1988, the financing amount was 28 million yuan.

Since then, through 6 refinancings, *** raised 5.1 billion yuan.

From a little-known small company to a real estate giant with total assets of nearly 10 billion, the continuous and stable supply of funds plays an important role.

Unlike indirect financing methods such as bank loans, direct financing does not have the pressure to repay principal and interest.

Enterprises will be able to invest more funds in research and development, and the listing of small and medium-sized enterprises will effectively enhance the motivation and ability of enterprises to start businesses and innovate.

3. Listing can effectively enhance a company’s brand value and market influence.

Traditionally, there are three main ways for companies to communicate their brands or images: word of mouth, advertising and marketing (or public relations).

In fact, public offerings and listings have stronger brand communication effects.

Access to the capital market shows that the growth, market potential and development prospects of small and medium-sized enterprises are recognized, which itself is a symbol of honor.

At the same time, restructuring and listing play an important role in brand building for small and medium-sized enterprises.

Roadshows and prospectuses can publicly display a company's image; the daily trading market and the rise and fall of company stocks have become company advertisements that millions of investors must see; the media's follow-up reports on new business expansion of listed companies and new trends in capital market operations,

It can attract the attention of thousands of investors; real-time surveys and industry analysis by institutional investors and securities analysts can further explore the potential value of enterprises.

4. The listing of enterprises can discover the value of the company and realize the appreciation of the company's equity. The listing of stocks is equivalent to providing a trading platform for the company's "securitized" assets, enhancing the liquidity of the company's stocks, and helping to discover the value of the company through open market transactions.

, realize the appreciation of the company's equity and bring wealth to the company's shareholders and employees.

Changes in stock prices after listing form a market evaluation mechanism for the company's performance, and have also become an important driving force for company mergers and acquisitions, forming an effective spur to the company's management.

For companies with excellent performance, good growth potential, and integrity, their stock prices will remain at a high level. Not only can they continue to raise large amounts of funds at lower costs and expand their business scale, but they can also use stocks as M&A tools to further cultivate

and develop the company's competitive advantages and strength, enhance the company's development potential and stamina, and enter a channel for 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 poor companies are gradually eliminated. The decline in stock prices makes the company face the fate of being acquired at any time.

2. Advantages of listing domestic companies 1. The first is the issue price and refinancing advantages. Domestic issuance risks are relatively low.

The supply and demand relationship between domestic and overseas markets is very different, and domestically issued stocks can be actively subscribed by domestic investors.

In particular, when small and medium-sized enterprises issue stocks overseas, they often run the risk of undersubscription by investors, and the issuance may even fail.