A Case Analysis On Shentong's Backdoor Listing From IDC

With the rapid development of capital market,various ways of financing emerage in endlessly,as an important way of financing,listing enjoys high favor by many enterprises.With the advantages of low cost and high speed In the securities market,there are two ways to go public,which are IPO and backdoor listing.However,as China adopts the auditing system,the threshold for IPO issuance is relatively high,and the process of audit is complex,many start-up enterprises are difficult to meet the requirement of the IPO issuing conditions,and cannot get IPO qualifications.As a way of listing,which can bypass the strict censorship procedures of IPO,backdoor listing has provided many channels for non-listed company to meet the requirements of IPO.Non-listed company acquired control rights of listed companies by acquiring shares of listed companies,and further injected its high-quality assets into listed companies,so as to achieve optimal integration of resources and achieve the purpose of indirect listing.After borrowing the shell sucessfully,the listed company's main business and the actual controller will be a fundamental change.Therefore,the backdoor listing is essentially a special M & A transaction.More and more non-listed company have realized indirect listing by borrowing the shell,the academic research on backdoor listing has also become a hot topic,the researchers paid more and more attention to the process of backdoor,the reasons of backdoor and the mode of backdoor.However,the existing research is mainly based on the merger and acquisition,and the research of subdivision to the listing is not much.Meanwhile,the existing research is also mainly based on the macro level,and it is general research of all enterprises in the context of a large environment,and only a small amount of research is on the real estate industry and the securities industry,but most of the special studies in other industries are in a blank.Therefore,through combining theoretical analysis and case analysis,this paper analyzes the first listed express company in emerging industries,taking STO's backdoor listing with IDC as the main research object,it analyzes the case from the perspectives of the reasons of STO's backdoor listing,the reasons for IDC to sell shells,as well as the backdoor listing process and reasons of its success.At the same time,it further studies the impact of STO's backdoor listing on STO,and the impact of backdoor listing on IDC after STO's successful listing.This paper draws the following conclusions through the analysis of STO's backdoor listing with IDC:(1)Because STO can not meet the requirements of IPO issuance,it achieves the purpose of listing through borrowing shells conversely,themain reason for its listing is to raise the scale of the enterprise for financing;(2)The poor management is the main reason for IDC to sell the shell,the rise in management costs and the investment in sea salt investment projects led to a loss in operation in 2015,so as to avoid the merger and reorganization of the delisting,it introduced the high quality assets to realize the optimization and upgrading of the enterprise;(3)STO has introduced high-quality assets,which has effectively improved the solvency,profitability and development ability of enterprises after M & A transaction,and realized the optimal allocation of resources.Based on the above research and conclusions,the following inspiration could be drawn:(1)Backdoor listing is an important way for non-listed companies to enter the capital market;(2)To select the appropriate shell business is the prerequisite for the success of the backdoor listing;(3)The choice of the shell model is the key to the success of the backdoor listing;(4)Selling the shell is an effective mechanism for listed company to withdraw.This thesis is divided into five parts.The first part is the introduction,mainly introduces the research background and significance of the study.It also introduces the backdoor listing motivation,post-market performance and other related theories,and the corresponding review,and in the end,the overall framework of this thesis is put forward.The second part is the theoretical overview of the backdoor listing,which is the theoretical framework of this thesis.It mainly elabarates the concept,procedure and characteristics of the backdoor listing,the way of the listing,the motivation of the backdoor listing and the related theoretical explanations.The third part is the case study of STO's backdoor listing with IDC A-share listing,which is the case introduction of this thesis.The basic situation of the case company,the basic process of STO's backdoor listing,the motivations for STO to buy shell and reasons for IDC to sell shell are introduced in this part.The fourth part discusses the reasons for the success of STO's A stock listing and analyzes of the impacts on both parties,which is the case analysis of this thesis.It includes the reasons for the success of STO's backdoor listing,the influences of STO's backdoor listing on both IDC and STO.It also analyzes the performance of the company after the backdoor listing.The fifth part is the conclusion and enlightenment of the case study,which includes the conclusion of the case study,and revelations of backdoor listing from the current situation of the capital market in China are drawn.