IPO Financing Dilemma Of XL Company And Research On Resolving Strategy

SME financing is a social problem, the problem of financing is a common phenomenon in the Agro-chemical companies too. Most of Agro-chemical companies enterprises in the early days rely on primitive accumulation and investment of shareholders,when the company has a certain size,they can get limited bank loans to help businesses developing, very few can take advantage of the capital market to boost business development. With the increase of listing Corporation,more and more mergers and momentum within the industry, The unlisted small and medium sized enterprises fear to be acquired. They are tired of smaller projects, but lack funds on larger projects. With the increase of environmental supervision,enterprises need to increase investment in environmental protection,capital markets just can help solve these problems. Therefore, dozens of unlisted companies put IPO in to the strategic long-term planning. However, listing is not everything is going smoothly, the successful listing companies are few finally.2013 NationalEquities Exchange and Quotations System(The Third Board) was expanded to the whole country.It provides a new trading platform. However, due to asymmetric information and other reasons,few small-scale enterprises understand the the new board. Large enterprises Had started IPO are against listing on The Third Board. They lost the chance to visit the capital market and obtain development funds by using The Third Board.XL is a set of pesticides, pesticide intermediates research and development, production and sales in one of the national pesticide-Fixed point enterprises. Companies using advanced technology, excellent product quality, founded more than a decade has been the main business revenue and net profit of more than 20% of the speed of development, the financial indicators have reached the A-share listing requirements. Due to various reasons,it has been unable to success to list on A-share. After starting IPO. Founders did not want to go to The Third Board However, with the rapid development of The Third Board in 2014, it become More and more small gap with A-share market. The Third Board become More and more attractive. The purpose of writing this article-to analysis Feasibility of listing on The Third Board And develop a plan to help XL companies through equity financing, to achieve new leaps.In this paper, through using the enterprise life cycle theory and asymmetric information theory, and the method of comparative analysis and case analysis to Analysis on the current situation of the status quo and the listing and financing of XL company, concluded that XL is difficult to listing and the problem of IPO can’t solve in the short term. Secondly, combined with the actual situation of XL company and The Third Board listing requirements, to conclude that XL company landed in The Third Board is entirely feasible. Once again, the combination of the actual, put forward a plan of listing on The Third Board. Finally, puts forward the proposal to the company after listing on The Third Board to help businesses develop.The contribution of this paper and innovation is to palygorskite pros and cons of The Third Board to preparation of A shares of listed companies, especially agricultural enterprises. According to the actual situation of enterprises to implement the listing strategy and market strategies, rather than separate The Third Board with IPO, This paper can provide the theory and practice of case, support for the struggling enterprises to be listed on The Third Board, to provide new ideas for the financing of small and medium-sized enterprises.