Research On Enterprise Back-door Listing

Back-door Listing is one means of Merger and Acquisition and is also considered another indirect way for enterprise listing. Since "Bao Yan Event" in 1993, more and more enterprises became listed in the way of back-door, which becomes a special phenomenon in the field of Merger and Acquisitions. As buying shell to be go public is very common in Chinese Security Market, the operation itself becomes a hot topic among academic and practical circle.In China, getting listed directly is scarce resource due to its special historical system background. The central government will favor state-owned enterprises when allocating the quotas. It's hard for private companies or high-tech enterprises to get listed. In this case, buying shell becomes another necessity for financing by listing. Stock option allocation reform, as one of the most significant step in the systematic transformation of Chinese Securities Market, brought tremendous investment opportunities to the stock market. With most listed company finished its share reform, our security market welcomes the stock-entire-circulation times, which will probably influences a lot the behavior of enterprises buying shell to go public. We're convinced that buying shell to go public will be very prosperous in the security market in the near future.This essay firstly makes a theoretical analysis to the reason, mode and operation of buying shell to go public, and also to its risk and integration afterwards. Based on the analysis above, it further demonstrates the theory to be more specific with the case study on Suning Universal Group Back-door *ST Ji Lin Sheet. Good lessons can be introduced after all the analysis on this successful operation of buying shell to go public and will be good guidance for other enterprises in their way of going public by buying shell after reforming of stock share allocation.