Research On The Market Timing Of Backdoor Listing

In recent years,backdoor listing has become one of the financing models for many companies to avoid IPO.On the one hand,due to the strictness of China’s IPO laws and the auditing system;on the other hand,due to the backdoor listing can accelerate to enter the capital market and reduce the financial costs of the listed company.In addition,China is in a period of deepening the reform of mixed ownership.The state encourages enterprises to reorganize,reform,and improve the efficiency of asset restructuring.Therefore,backdoor listing has an important impact on the country as a whole.This paper takes backdoor listing of Greenland Group as a case,and sorts out related materials and literature of the market timing,financing and backdoor listing.Focusing on the market timing theory,respectively from the backdoor environment(industry,debt rate,IPO,government regulation environment),shell resource selection,and payment control,the analysis show the rationality of Greenland Group’s using Jinfeng Investment as its shell resource and its backdoor listing.By the research of the Greenland Group,we can comes to some conclusions:The company must solve the following problems if it wants to succeed in backdoor listing.Firstly,the backdoor enterprise should always pay attention to the backdoor listing environment.Secondly,the backdoor enterprise should choose shell resources reasonably.Generally,they should choose shell resources with clear equity structure and relatively undervalued value.Thirdly,the backdoor listing often involves replacement of asset and private placement to purchase assets.Under the premise of laws and regulations,listed companies can lock in the lower issue price through the selection and suspension of the benchmark day for the additional targets to obtain more shares,thus promoting the completion of major asset restructuring.Backdoor listing can speed up the entry into the capital market,reduce the pressure on listing costs,and obtain good performance response.According to the conclusion,this paper mainly offers three proposals:focusing on the backdoor environment,selecting the shell resource and locking the payment consideration.At the same time,it also proposes the possible research directions of the topic.