news

A must-read for new IPOs | A major new change for companies planning IPOs!

2024-08-07

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

Since the beginning of this year, as the regulatory authorities have tightened the listing process, some companies that had attempted to go public have begun to seek "new ways out." Among them, being acquired by a listed company has become a new option for some companies that are planning to go public.

According to incomplete statistics, six A-share listed companies have issued announcements for the first time this year on the acquisition of controlling stakes in IPO companies, which is roughly the same as the number for the whole of last year. Industry insiders believe that some of the companies to be listed are high-quality assets that are attractive to listed companies, and it is expected that such M&A cases will continue to increase this year.

It is worth noting that this is also a major new change for companies planning to go public in recent years. In the context where it is rare for companies planning to go public to "change lanes" and go public through backdoor listing, many companies have been "favored" by listed companies for the purpose of industrial synergy and have chosen to enter the capital market through "being acquired."

In an environment of stricter regulation, the phenomenon of "marriage" between IPO companies and listed companies is increasing. This trend reflects the flexibility and diversity of the capital market and also provides companies with a new development path.

However, the success of M&A and restructuring depends not only on the willingness of both parties, but also on the market environment and regulatory policies. Securities investment bankers pointed out that the M&A market is highly uncertain and multiple factors need to be considered comprehensively. The uncertainty in the M&A process also reminds market participants that they need to more carefully evaluate the feasibility and risks of M&A.

In the above-mentioned acquisition cases, plans of listed companies such as Dengyun Holdings and New Power to acquire companies planning to go public were aborted halfway.

In general, with the tightening of the IPO market and favorable M&A policies, it is expected that more companies planning to go public will choose to enter the capital market through "mergers and acquisitions" or "being acquired" in the future. This not only provides listed companies with opportunities to acquire high-quality assets, but also provides a new development path for companies planning to go public.