China
and North America IPO Info
Differences for
listing in China versus North America
The
problem for listing in China:
1.
With high costs in earlier stage, it usually costs about 20 million. When you
ask for help, usually end up with troubles or crooks. You would probably consume
too much time and has done too much useless work.
2.
Ability of financing after being listed is dim.
3.
It is still confined to the domestic market that the business of the listed
company is influenced; the influence to the outside is difficult to expand.
4.
It is more difficult for the investment capital stock of the big shareholder of
enterprise run by the local people of the company to cash on the secondary
market.
5.
The capital of the enterprise run by the local people will need fettering
seriously overseas investment in the future.
The
advantage for listing abroad:
1.
The formality is simple, so long as the company has better achievement or has
better projects and met the according listing condition. Do not need approval of
each.
2.
The listing expenses compared with China are small.
3.
Listing time is quick, general enterprises start the listing procedure, can go
on the market in about 8 months. Some need only half a year.
4.
Overseas listing enterprise's financing ability exceeds initial financing and
ability to finance again that are listed at home from far away.
5.
Overseas and listing enterprises have very great influence, the business to
enterprises, especially overseas business have great facilitation.
6.
Primitive investment of shareholder of listed company easy to cash in the
secondary market, the currency cashed has been changed into the foreign
currency; the advantage cashed from the secondary market can stay abroad, and
continue making the investment abroad. This has offered very great convenience
for the fact that the spouse and children in charge of personnel of enterprises
immigrate and study abroad overseas.
7.
After Chinese enterprises are listed overseas, the main directors of
enterprises can apply for the numerous round jobs visa abroad, it is very
convenient to enter and leave the border.
8.
The enterprise run by the local people after being listed overseas runs the
property with enterprises and is protected strictly by the law which is listed
the country where one stays.
Procedure
If
the main materials of Chinese enterprises have been got ready to issue to us, we
will be assessed by the expert immediately, make the decision to could be
listed.
Once
we think the company have listing potentiality, we will consult with listed
company and begin to enter and begin to merchandize the cooperative procedure,
sign the cooperative agreement, prepare the listing plan.
Our
company will send experts to come to the company to do the special investigation
afterwards, or ask chief leaders of the listed company to visit North America,
discuss the concrete problem with the listed company.
First, the Chinese cooperative venture find out about the basic situation of the
listed company and listing will.
Second, the Chinese cooperative venture offers the basic situation that plans to
come to the listing company of North America, including the following aspects:
1. The brief introduction of the
listed company and main business lines introduction.
2. Listing immediate objective, main
development projects and market potential.
3. The long-term goal of the company
and business developing direction.
4. Company financial statement for
most recent three years.
5. The capital stock structure of the
company, the brief situations of controlling shareholder and main administrative
staff
Third, expert's possibility listing to the listed company of our company carries
on the preliminary assessment, the expert assessing it includes:
1.
Certified accountant
2. Securities
lawyer is
3.
Representatives of securities traders
4. Invest
in the analyst
Fourth, decide, namely IPO is listed, purchase and listed backward.
Fifth, sign the cooperative agreement with listed company, paid some listing
service expenses by the listed company. Listed commonly Department's listing
expenses are difficult, the company can use share as the expenses to deal with.
Sixth, send experts to go to the Chinese company and investigate on the spot
that investigate, invite the Chinese listed company to manage mainly at the same
time in our company Personnel come to North America to investigate the
listing environment of North America.
Seventh, prepare the detailed listing prospectus and handle various kinds of
listing files.
Eighth, help the listed
company to set up the mechanism of management of the operation of listed
company.
Ninth, listed coaching to
listing management teams.
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Choices for Chinese enterprises to be listed in
North America
If
the company of China hopes to be listed on North America now, there are two
options:
First, IPO is listed, namely is listed through the securities trader issues the
new stock .
According to putting financing in right place in one step in the company, this
is a better method. But IPO is listed; the cost paid is very high. Company's
listing procedure is very complicated, it is very strict that the financial
affairs are examined; it is long to take time. This may be more suitable to some
Hi-Tech companies with very high popularity. The previous expenses are larger to
smaller company. The financing cost is relatively high. The time spent is long,
common people can not bear.
Second, purchase backward (Buy the shell) Listed.
Let
the company purchase the shell company already listed on NASDAQ or Canada
backward in North America first, borrow the shell and is listed, then finance.
The previous cost is very low to do it in this way. Listing is fast. The
financial affairs demand not to be so strict either. Begin the financing plan
immediately after being listed. If it is a smaller Hi-Tech company, financing is
easier after listed.
Going public through buying a shell has shells of NASDAQ, the shell of NASDAQ is
mainly OCT.BB (second board market), The Hi-Tech company hopes to be gone to
NASDAQ to list. There is a shell Company of Canada too, it is mainly a risk
market of Vancouver (TSX Venture) Shell Company. Besides buying the shelly
expenses, it is the expenses of financial audit and lawyer to list the largest
expenses. The expenses should be made according to the attendant¡¦s experience,
business relations and ability, there is no certain price.
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