Initial public offering (IPO) means that an enterprise or company (joint stock limited company) sells its shares to the public for the first time (IPO means that a joint stock company makes an initial public offering to the public).

Initial public offering (IPO) refers to the process that an enterprise issues additional shares to investors for the first time through a stock exchange to raise funds for the development of the enterprise. Usually, the shares of listed companies are sold through brokers or market makers according to the terms agreed in the prospectus or registration statement issued to the corresponding stock exchanges. Generally speaking, once the initial public listing is completed, the company can apply for listing on the stock exchange or quotation system.

Basic requirements for IPO issuance of SMEs;

1. The issuance shall adhere to the principles of openness, fairness, justice, efficiency and economy, and maintain the stability of financial order and social security.

2. The lead underwriter shall assist the issuer in selecting the issuance method and drawing up the issuance plan (including the issuance expense budget).

3. Before the stock is issued, the lead underwriter shall be responsible for publishing the announcement of issuance in the designated newspaper. The announcement of issuance shall specify the issuance method, time, place and related matters.

4. During the issuance period, the underwriter shall post or announce the prospectus and issuance announcement in other forms at the distribution outlets. When there are major problems in effective activities, the lead underwriter shall immediately report to the China Securities Regulatory Commission.

5. After the stock issuance, the lead underwriter shall immediately announce the issuance results, fax the issuance feedback form to the China Securities Regulatory Commission, and report the issuance summary report, capital verification report, notarization report and subscription placement as official documents to the China Securities Regulatory Commission, and send a copy to the dispatched office of the China Securities Regulatory Commission.

6. After the expiration of the underwriting period, unsold securities shall be handled separately in accordance with the underwriting or consignment method agreed in the validity agreement.

7. If the underwriter violates relevant laws and regulations in the underwriting process, the China Securities Regulatory Commission will punish him according to the seriousness of the case until he is disqualified from underwriting stocks.