Listing Services is a business owned by American Software Capital Group
Author:American Software CapitalSource:American Software Capital
Listing Services is a business owned by American Software Capital Group, which can provide a fast and efficient way for companies to go public.
These are the profits a company can gain from listing:
1.Get more financial support. Companies that need to raise funds can get a lot of money through listing. Via the public offering of shares, a company can raise funds that can be used for a variety of purposes, including growth and expansion, debt liquidation, marketing, research and development, and corporate mergers and acquisitions. Furthermore, once a company is listed, it can raise more money from the public market again by issuing bonds, refinancing equity, or additional private placement.
2.Improving image and prestige. With the publicity of the company's listing, the marketing effect of its products and services will be greatly improved. Moreover, getting more attention will promote the formation of new business or strategic alliances, attracting potential partners and merger targets. The shift from private to listed companies will also enhance the international image of the company and provide customers and suppliers with confidence in long-term cooperation with the company. A company listed in international capital markets will gain significant brand recognition in China.
3.Reassessment. Listed companies tend to be more valued than private companies and immediately bring liquidity to shareholders, thus increasing the value of the company. For example, when Industrial and Commercial Bank of China wasn't listed, the cost Goldman Sachs bought a portion of its stake was 1.22 times the book value of ICBC, while when ICBC went public, its stock market value reached 2.23 times the book value and its valuation almost doubled.
4.Increased liquidity. Private ownership is often illiquid and difficult to sell, especially for minority shareholders. Listing creates an open market in which the company's shares are much more liquid than private equity, with investors, institutions, builders and owners all gaining liquidity, making buying and selling more convenient.
5.More competitive compensation and human capital. Listed companies can use stock and stock options to attract and retain talented employees, and stock ownership improves the loyalty of employees and prevents employees from leaving the company to become competitors.
6.A higher level of the management of the company. Private companies that decide to go public need to re-examine their management structure and internal controls, and the establishment of internal norms and procedures, and the improvement of corporate governance standards will eventually lead to higher levels of management, and companies that enforce internal controls and adhere to strict corporate governance standards will receive higher valuations.
7.Mergers and acquisitions. Once the stock market and valuation of listed companies are established, they have the advantage of buying other companies by trading stocks, which is more convenient and cheaper than other ways. With the ability to refinance in the open market, listed companies have a stronger ability to provide financial support for cash acquisitions. Listing also makes it easier for other companies to notice the company and assess potential integration and strategic relationships with the company.
8.Realize the free transfer of wealth. The open market in which company shares are located also provides liquidity and exit strategies for initial investors and owners. Listing also makes it psychologically easier to identify with the company's financial success, which can increase the personal net assets of the company's stockholders, even if the shareholders of the listed company do not cash in immediately, publicly traded stocks can be used as collateral for loans.
Common Methods of Investment Consultant:
1.Initial Public Offerings. Also known as the initial public offering of shares. Initial public offering refers to the process of issuing additional shares to investors through the stock exchange in order to raise funds for the development of enterprises. Usually, the shares of a listed company are sold through a broker or market maker in accordance with the terms agreed in a prospectus or registration statement issued to the corresponding securities association. In general, once the initial public listing is completed, the company can apply for listing on the stock exchange or quotation system.
2.Reverse Takeover. It means that the shareholders of a non-listed company control the company by acquiring the shares of a shell company (listed company), and then the company reversely acquires the assets and business of the non-listed company and makes it a subsidiary of the listed company. The shareholders of the former non-listed company can generally obtain the controlling right of most of the listed companies so as to achieve the purpose of indirect listing.
3.SPAC ：Special Purpose Acquisition Corporation
Special Purpose Acquisition Corporation is the innovative financing method of backdoor listing. The difference is that SPAC build their own shell, that is, first set up a special purpose company in the United States, which has only cash, no industry and assets. The company will invest in target companies that want to list. The target company will quickly achieve the purpose of listing and financing through mergers and acquisitions with the listed SPAC.