What is the significance of listing?
1. Using the capital market can promote the standardized development of 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 enterprise is restructured and listed, it is necessary to issue listing standards around the capital market, and strive to achieve "reaching the standard" and "continuously reaching the standard". At the same time, the risk of delisting after listing and the risk of being merged 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, and the financing of corporate bonds and external equity is insufficient 1%, so China enterprises are facing a serious direct financing bottleneck. Direct financing by issuing stocks can break the financing bottleneck, obtain long-term stable capital funds and improve the capital structure of enterprises; You can use the unique mechanism of "risk * * *, income * * *" in equity financing to 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. Since then, it has raised a total of 5 1 100 million yuan through six refinancing, and developed from a little-known company into a real estate giant with total assets of nearly 10 billion, in which the continuous and stable supply of funds has played a huge 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 money in R&D, and the listing of enterprises will effectively enhance the motivation and ability of enterprise entrepreneurship and innovation.
3. The listing of enterprises 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-private relations). In fact, public offering and listing have a stronger brand communication effect. Entering the capital market shows that the growth, market potential and development prospect of the enterprise are recognized, which is itself a symbol of honor. At the same time, the restructuring and listing has a great effect on the brand building of enterprises. Roadshows and prospectuses can publicly display corporate image; The daily trading situation, the rise and fall of the company's stock, has become a must-see company advertisement for millions of investors; The media's follow-up reports on the new business expansion and 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. Listed companies can find the value of the company and realize the appreciation of the company's equity. Listing of shares is equivalent to providing a trading platform for the company's "securitized" assets, enhancing the liquidity of the company's shares, helping to discover the company's value through open market transactions, realizing the appreciation of the company's equity, 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 it has also become an important driving force for the company's mergers and acquisitions, effectively motivating the company's management. Companies with excellent performance, good growth and integrity will maintain their share prices at a high level. Not only can we raise a large amount of capital at a lower cost and expand the scale of operation, but we can also use stocks as a merger and acquisition tool to further cultivate and develop competitive advantages and strength, enhance 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.