The difference between Main Board listing and GEM listing mainly lies in the listing conditions, which mainly include the following points:
1 The Main Board requires companies to be profitable for three consecutive years to be listed on the GEM. If it is less than 5 billion yuan and the revenue in the past year is not less than 300 million yuan, there will be no profit requirement.
2 The main board listing requires that the cumulative operating income in the past three fiscal years exceeds RMB 300 million. The GEM does not have revenue requirements as long as the net profit in the past two years is positive and the cumulative total is not less than 50 million yuan.
3 Listing on the main board requires companies to have a certain amount of cash flow, but there are no relevant regulations on the GEM.
We can know from this that the conditions for listing on the GEM are more flexible and have lower thresholds than the main board market. This is a good thing for listed companies, but for investors, it is difficult to choose stocks with poor fundamentals. The probability has also increased. In GEM investment, investors should pay more attention to the value of listed companies.
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Listing is a securities market term. In a narrow sense, Initial Public Offerings (IPO) refer to the process in which companies issue additional shares to investors through the stock exchange for the first time in order to raise funds for corporate development.
When a large number of investors subscribe for new shares, the shares need to be allocated by lottery, also known as drawing new shares. Investors who subscribe expect to be able to sell at a price higher than the subscription price.
In the domestic environment, listing is divided into: Chinese companies are listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange in China; Chinese companies are listed directly on non-Mainland China stock exchanges (such as the Hong Kong Stock Exchange) , New York Stock Exchange, Nasdaq Stock Exchange, London Stock Exchange, etc.) and Chinese companies indirectly establish offshore companies overseas and list them on overseas stock exchanges in the name of the offshore company (red chip stocks). Way.
Listing process
Restructuring stage
The issues involved in enterprise restructuring, issuance and listing are relatively extensive and complex, and are generally completed with the assistance of professional institutions hired by the enterprise. Enterprises must first identify a securities firm and select other intermediaries as early as possible with the assistance of the securities firm. The main intermediaries involved in stock restructuring include: securities companies, accounting firms, asset appraisal agencies, land appraisal agencies, law firms, credit reporting agencies, etc.
Work content of relevant agencies
Companies to be restructured
Enterprises to be restructured generally need to set up a restructuring team. The main person in charge of the company will make overall coordination. The team will be assigned from the company's office, It is composed of financial and personnel familiar with the company's history, production and operation. Its main tasks include:
Comprehensive coordination between the enterprise and relevant provincial and municipal departments, industry authorities, dispatched offices of the China Securities Regulatory Commission and various intermediary agencies, The relationship between the listing of enterprises on the main board and the listing of enterprises on the small and medium-sized board, and comprehensive supervision of the work process;
Cooperate with accountants and appraisers to conduct accounting statement audits, profit forecast preparation and asset appraisal work;
Work with Cooperate with lawyers to handle legal matters related to listing, including the preparation of company articles of association, underwriting agreements, various related transaction agreements, sponsor agreements, etc.;
Responsible for the project approval of investment projects and providing project feasibility study reports;
Complete various board resolutions, company documents, apply for approvals from competent authorities, and be responsible for news reports and public relations activities.
Security firms
Formulate restructuring plans for joint-stock companies;
Consider the total share capital, equity structure, IPO financing, allotment of new shares, and issuance plans for joint-stock companies. Operational guidance and business services;
Recommend other intermediaries with securities qualifications, coordinate the business relationships, work steps and work results of all parties, and act as the overall planning and coordination of the entire process of company restructuring and stock issuance and listing. Personnel;
Draft, summarize and submit a full set of application materials;
Organize an underwriting syndicate to underwrite A shares and undertake the organizational work for the issuance and listing of A shares.
The accounting firm
verifies the capital contribution and actual arrival of each sponsor, and issues a capital verification report;
is responsible for assisting the company in making relevant account adjustments so that the company can The financial processing complies with the regulations:
Assist the company to establish the financial accounting system and financial management system of the joint-stock company;
Audit the company's operating performance in the previous three years, and review the company's profit forecast .
Inspect the company's internal control system and issue an internal control system evaluation report.
The asset appraisal firm
will evaluate the assets invested by each sponsor and issue an asset appraisal report when necessary.
Land appraisal agency
Evaluate the land use rights included in the share capital of the joint-stock company
Law firm
Assist the company in writing its articles of association , promoter agreements and important contracts;
Responsible for reviewing various documents for stock issuance and listing;
Drafting legal opinions and lawyer work reports;
Provide legal consulting services for stock issuance and listing.