What Is Backdoor Listing?

Generally speaking, a listed company bought by a company is a company that has some difficulties in its main business. After purchasing a listed company, in order to achieve the purpose of financing in the stock market, a large part of the quality assets are usually injected into the listed companies, so that their performance can meet the standards of participating in the rights issue stipulated by the management level.

In addition, the better the performance of a listed company, the higher its allotment price will be, and the more capital the company will raise.

Backdoor listing is an incomparable advantage of direct listing.

The most prominent advantage is that the shell company has made great profits in the stock market because of its asset replacement, and its value in the stock market is likely to increase rapidly. Therefore, the value of the shares purchased by the enterprise may also increase exponentially, so the profits that the enterprise gains may be very huge.

One of the typical cases of backdoor listing is Johnson group borrowing shell.

Johnson group has been restructured by Shanghai taxi company, and has large quality assets and investment projects.

In recent years, Johnson group has made full use of the shell resources of Pudong Johnson, a listed subsidiary of the holding company. Through the three rights issue fundraising, it has injected second and fifth subsidiaries of the group into Pudong Johnson to complete the backdoor listing of the plant group.

In practice, the general practice of backdoor listing is:

First, the group first divest a high quality asset.

The second step is to raise funds from the large share allotment of listed companies and inject the key projects of the group into the listed companies.

The third step is to inject the non key items of the group company into the listed companies by rights issue.