The Research On The Failure Case Of Huatu Education Backdoor Listing

In our country,companies will get a good financing platform after listing,but the initial public offering(IPO)audit in our capital market is relatively strict and restrictive,which will consume a lot of manpower and material resources in the process.Many enterprises have chosen backdoor listing as a way to achieve financing.However,backdoor listing is risky.It may fail because of the irregular operation or inaccurate recognition of policies.It is also because companies are eager to go public and randomly select shell resources.Therefore,how to successfully backdoor listing has become a problem many enterprises want to understand.This paper chooses Huatu Education,which failed in two backdoor listings,as an example,hoping to play a reference role for the success of other enterprises.Firstly,this paper studies the domestic and foreign literature on backdoor listing,and summarizes the motivation and performance theory of backdoor listing.This paper collects information about Huatu backdoor from the company’s annual report and relevant documents issued by the state.This paper introduces the situation of the company and shell company,and analyses the listing process,structure and financial situation of the company.It is believed that Huatu is mainly driven by industry competition,the support of national policies,and its own needs,and so on.This paper uses case analysis,literature review and normative research to analyze the main reasons for the failure of Huatu education backdoor listing from internal and external aspects,respectively,because of improper selection of shell resources,shareholders can not reach consensus and incorrect understanding of policies and regulations.It is concluded that in the process of backdoor listing,appropriate shell resources should be selected,internal control of enterprises should be strengthened,and the mechanism of major decision-making should be strengthened.Hope to be able to play a reference role for the successful backdoor listing of other enterprises.Most of the existing studies on backdoor listing are successful cases in real estate and manufacturing industries.This paper mainly studies the related theory of backdoor listing of new third board education enterprises in China and the case of Huatu education backdoor listing.It analyses the reasons from the angle of failure of backdoor listing,in order to provide experience summary for successful backdoor listing of new third board education enterprises.From the new perspective of the failure of backdoor listing in practical significance,this paper analyses the risks of backdoor listing of new three-board educational enterprises,which enriches the research field of backdoor listing.