Research On The Way Of Listing Of The New Three Board Companies

In China,the successful listing of companies can become a direct financing platform.It is in this interest that,in recent years,successive three-tier listed companies have attempted to pass IPO or backdoor listings.Regarding two different ways of listing,many new three-tier companies do not know which of the listed approaches is more conducive to the purpose of achieving their own listing.Many companies also hesitated before taking both approaches and lost good timing.Some of the companies also made preparations for both backdoor and IPO listings.However,in February 2018,the China Securities Regulatory Commission issued the “Relevant Questions and Answers concerning the IPO's Participation in Restructuring Transactions of Listed Companies as the Subject Asset by the Company as the Subject Asset.” At least three years before they can plan for a backdoor listing,which means that companies must choose between IPOs and backdoors.Therefore,it is very important to help the New Three Board companies to seek a suitable listing approach at this point in time and provide reasonable advice for the listing of the new Three Board companies.This article first elaborated the status quo of the new three board market and found that more and more companies in the new three board market have strong demand for listing in recent years.Then it compares the IPO and backdoor listing channels in detail,and considers that both the listed channels have their own advantages and disadvantages.There are no obvious advantages or disadvantages in terms of the two listed channels.Companies need to combine two types of listings according to their own characteristics.Advantages and disadvantages of each way to choose reasonably.Afterwards,this article analyzes Huatu Education's four cases of seeking listing within five years and summarizes the reasons for the failure of Huatuo Education's every listing.At the same time,in February 2018 Huatu Education analyzed the H-share application for IPO,and it is considered that Huatu Education is more likely to be listed on the market.Finally,the lessons learned from the failure of Huatuo Education's listing have provided some suggestions for the listing decision of the new three board companies.They believe that companies should take appropriate time to go public and recommend different listing channels for different companies.Enterprises with poor operating performance should not be blindly listed.Those with the ability and vision to integrate upstream and downstream resources or those eager to finance expansion are more suitable for listing through backdoors.Companies with better financial status and stronger operating capabilities are more likely to go public through IPOs.