Difference between Main Board Listing and Growth Enterprise Market Listing
The main board 1 requires the company to make profits for three consecutive years. As long as the expected market value of GEM is not less than 5 billion yuan and the revenue in the latest year is not less than 300 million yuan, they will not ask for profit.
The listing of the main board requires that the accumulated operating income in the last three fiscal years exceed 300 million yuan. As long as the net profit of GEM is positive in the last two years, it has accumulated at least 50 million yuan, and there is no revenue requirement.
The listing of the main board requires enterprises to have a certain cash flow, while the GEM has no relevant regulations.
It can be seen that the conditions for listing on GEM are more flexible and the threshold is lower than that in the main board market, which is good for listed companies, but for investors, the probability of choosing stocks with poor fundamentals has also increased. In GEM investment, investors should pay more attention to the value of listed companies.
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Listing is a term in the securities market. In a narrow sense, initial public offering (IPO) refers to the process that an enterprise issues shares to investors for the first time through a stock exchange in order to raise funds for enterprise development.
When a large number of investors subscribe for new shares, they need to draw lots for allotment, which is also called drawing new shares. Investors who subscribe expect to sell at a price higher than the subscription price.
In the domestic environment, the listing is divided into two parts: the listing of China companies on China Shanghai Stock Exchange and China Shenzhen Stock Exchange; China companies go directly to non-Chinese mainland stock exchanges (such as Hongkong Stock Exchange, new york Stock Exchange, Nasdaq Stock Exchange, London Stock Exchange, etc.). ) and China companies indirectly set up offshore companies overseas and listed on overseas stock exchanges in the name of offshore companies (red chips).
Listing process
Reorganization stage
The problems involved in enterprise restructuring, issuance and listing are extensive and complex, and are generally completed with the assistance of professional institutions hired by enterprises. Enterprises should first identify brokers and choose other intermediaries as soon as possible with the help of brokers. The main intermediaries involved in the share reform are: securities companies, accounting firms, asset evaluation agencies, land evaluation agencies, law firms, credit reporting agencies, etc.
Work content of relevant institutions
Companies to be reorganized
Enterprises to be restructured generally need to set up a restructuring team, and the main person in charge of the company will make overall planning. The team consists of people from the office, finance and familiar with the company's history, production and operation. Its main work includes:
Comprehensively coordinate the relationship between enterprises and provincial and municipal departments, industry authorities, dispatched offices of CSRC, intermediaries, listing on the main board of enterprises and listing on the small and medium-sized board of enterprises, and comprehensively supervise the work flow;
Cooperate with accountants and appraisers to audit accounting statements, prepare profit forecasts and evaluate assets;
Cooperate with lawyers to handle legal affairs related to listing, including writing articles of association, underwriting agreement, various related party transaction agreements, sponsorship agreements, etc.
Responsible for the examination and approval of investment projects and provide project feasibility study reports;
Complete all kinds of board resolutions and company documents, apply for approval from the competent authorities, and be responsible for news propaganda and public relations activities.
broker
To formulate the reorganization plan of the joint-stock company;
The total share capital, ownership structure, initial public offering financing, new share placement, issuance plan formulation, business guidance and business services of the joint-stock company;
Recommend other intermediaries with securities qualifications, coordinate the business relations, work steps and work results of all parties, and act as the overall planner and coordinator of the whole process of company restructuring and stock issuance and listing;
Draft, summarize and submit a complete set of application materials;
Organize A-share underwriting and undertake the organization of A-share issuance and listing.
accounting firm
Check the capital contribution and actual situation of each promoter and issue a capital verification report;
Responsible for assisting the company to adjust the relevant accounts to make the company's financial treatment conform to the regulations;
Assist the company to formulate the financial accounting system and financial management system of the joint-stock company;
Review the company's operating performance in the first three years, and review the company's profit forecast.
Check the company's internal control system and issue an evaluation report on the internal control system.
Assets evaluation office
When necessary, evaluate the assets invested by the promoters and issue an asset evaluation report.
Land evaluation agency
Evaluate the land use right incorporated into the share capital of the joint-stock company.
law firm/office
Assist the company to write articles of association, sponsor agreement and important contracts;
To be responsible for reviewing the stock issuance and listing documents;
Drafting legal opinions and lawyers' work reports;
Provide legal advisory services for stock issuance and listing.