The so-called backdoor listing means that a company with strong assets but not listed on the market injects assets into a listed company with a lower market value, obtains the controlling stake of the listed company through acquisition, asset replacement, etc., and then uses it to go public. Corporate status, which enables the assets of the parent company to be listed. Normally, the shell company will be delisted.

There are good and bad companies, and naturally there are good and bad shells. The quality of the shell is generally determined by the following indicators:

1. Market value

For the backdoor party, the biggest cost is the sharing and dilution of the rights and interests of the original listed company after the backdoor transaction. The smaller the market value of the shell company, the higher the proportion of backdoor shareholders after the reorganization, the more market value wealth will be shared after the subsequent listing, and the greater the space for equity financing. The larger the market capitalization of the shell company, the opposite is true.

2. Size of share capital

Under the premise that the market value of the shell company is determined, the smaller the share capital, the better. The smaller the share capital, the higher the earnings per share after reorganization, the smaller the pressure on subsequent operations, and the greater the space for subsequent equity financing.

3. Is the shell clean?

A clean shell must first ensure that there are no liabilities or other risks, and secondly, it must be able to successfully divest. The cleanest shell is the shell vacated by the reorganization of listed companies under the central government. State-owned enterprises have no internal drive to do evil and have a strong parent company as a backer.

4. Whether it can be relocated

Whether it can be relocated is also a very critical matter, because many backdoor companies receive various supports from the local government, and the mayor very much hopes to provide them with A local listed company was added as a political achievement.

Benefits of backdoor listing

1. First of all, backdoor listing can shorten the time and cost of listing and achieve listing quickly. Backdoor listing not only has a fast cycle and eliminates the need to wait in long queues at the China Securities Regulatory Commission to build relationships and offer benefits, but it can also avoid some major flaws that cannot be avoided with an IPO.

2. Secondly, all companies that become shells are listed companies with long-term poor management and low valuations. Then, a backdoor investor can secretly buy a position before going public and buy a futures contract in the futures market. After the reorganization is successful, the backdoor buyer can settle the futures transaction through physical delivery or cash settlement, thereby obtaining a profit from it.

3. Thirdly, backdoor listing can provide the convenience of refinancing in the capital market, which can not only improve the company's own debt financing capabilities, but also broaden the company's equity financing channels, reduce financing costs, and thus achieve corporate development. the funds required.

4. Finally, a company listed through a backdoor transaction is often the focus of attention in the capital market. After gathering the attention of a large number of investors and attracting the attention of many investors, the company listed through a backdoor transaction will be listed again and again. Been hyped by investors. Soon after, the company's stock price rose sharply.

This is actually very helpful for the development of the company