Backdoor listing

INTERPRETATION

Backdoor listing means that a parent company (group company) obtains a certain degree of controlling right by injecting assets into a listed company (Shell, shel) with low market value, and uses its status as a listed company to make the assets of the parent company be listed and reorganized, and the backdoor will become the new major shareholder of the listed company. Generally speaking, the review of mergers and acquisitions is looser than that of IPO.

for example

EXAMPLES

11 For example, if you run a tea shop, the tea shop is called "You Le Mei". Because business is good, you want to list your tea shop. However, the listing process is too cumbersome and the waiting time is particularly long.

At this time, you found a coffee shop "Xiaoxing Coffee" that has been listed through various relationship channels, but the business situation of the coffee shop is not good, and the stock price is extremely low. So you bought a lot of shares in this coffee shop at a low price and gained control of the coffee shop. After that, you add your milk tea to the menu of the coffee shop, which is equivalent to borrowing the shell of the coffee shop and making your milk tea shop successfully listed. Then change the name of "Lucky Coffee" to something like Yo Le Mei Holdings.

Just like SF Express, which we are familiar with, it was listed through the backdoor, and Dingtai New Materials was renamed as SF Holdings.

compared with ordinary enterprises, the biggest advantage of listed companies is that they can raise funds on a large scale in the securities market, so as to promote the rapid growth of the company's scale. Therefore, the listing qualification of listed companies has become a "rare resource", and the so-called "shell" refers to the listing qualification of listed companies. Because some listed companies have not completely changed their mechanism and are not good at management, their performance is not satisfactory, and they have lost the ability to further raise funds in the securities market. To make full use of this "shell" resource of listed companies, they must reorganize their assets. Buying a shell and listing by backdoor are two forms of asset reorganization to make full use of listed resources. One of the typical cases of backdoor listing is Johnson & Johnson Group's "mother" borrowing "child" shell.

as we said before, Chinese enterprises want to go public, which is like getting into kao. It's very difficult to get into the exam, but it's also very difficult to drop out. Some enterprises have gone public and developed poorly, but the qualifications of listed companies are still there. This listing qualification is very valuable. Enterprises that are called "shell" and are in a hurry to go public can use this shell to go public. It is a creative SAO operation.

illustration of backdoor listing transaction

small A

small A company

small V

listed company

before the transaction, small A and small V are all well

paying the shell fee

small A

small V

holding

reverse transformation

listing.