Private Enterprises Listed Way Analysis

Since China's openness to outside world, privately owned enterprises have been developing quickly with continuously increasing market share and the ongoing growth of their weight in national economy. Stastics shows that POE contributed to 65% of GDP of China, 70% of financial income of local government, 80% of employment optunities.However, this does not mean there in no trouble during the development. Even though many POEs have their own technologies and potential market, they face great demands for funds. Under such circumstances, some POEs adopted direct listing (IPO), or shell, a reverse merger way of acquiring financing channels on the motherboard. Others are finding their financing solutions in overseas stock markets. More POEs are facing the difficulty to find a listing strategy appropriate for themselves due to lack of in-depth analysis and understanding of a variety of listing approaches.The purpose of this article is to help POEs to find appropriate listing approaches of their own. This author firstly introduced the development of POEs and its funding problems, and agreed to take listing as an effective solution. Then the author reviewed the history of evolution of listing approaches for POEs, listed and analyzed conditions and scopes of various funding approaches for them. After this, the author introduced MR's story successful listing, deliberated on how to choose appropriate listing approaches for POEs. Finally , the author pointed out that the decisions on when and where to take the listing for POEs mainly depend on their development phase, their financing scale, their purpose of being listed, their structure of stock ownership, and their long-term strategic plan.