What are the key stages that a company needs to go through for financing and listing?

With the development of the economy and the prosperity of the capital market, more and more enterprises are turning their attention to the capital market, hoping to achieve rapid expansion and capital accumulation through the listing of enterprises. But the path of corporate IPO is not very easy. As is well known, corporate financing and listing is an extremely complex, time-consuming, and expensive process. According to reporter statistics, over a hundred companies have voluntarily withdrawn their IPO materials and terminated the listing process since the beginning of this year. In addition, 12 companies have not passed the company listing review, and nearly 20 companies have postponed or cancelled the review. Faced with such a phenomenon, we have to think: What are the key stages that enterprises need to go through in financing and listing? Today, we will delve into the key stages that a company’s IPO needs to go through in depth with experts.

The Five Stages of Enterprise Financing and Listing

Generally, a company’s financing and listing process involves the following five stages:

● The preparation stage for enterprise IPO: Conduct preliminary investigation, understand the market environment, conduct financial integration, and develop listing strategies.

● The execution stage of a company’s IPO: Start specific listing operations, such as preparing materials and determining the underwriting team.

● The approval stage of a company’s IPO: submit a listing application, wait for regulatory review and approval.

● The issuance stage of an enterprise IPO: After approval is completed, the public offering of stocks begins and the final listing price is determined.

● The trading stage of enterprise IPO: go online on the exchange and start stock trading.

Which of the five major stages of corporate financing and listing is the most important?

Throughout the entire process of a company going public, from the material preparation stage to the application review stage, and then to the issuance and listing stage, it can be as short as a few months or as long as a few years, and the intermediate process requires a lot of effort and cost. Taking the IPO of the Hong Kong Stock Exchange as an example, the preparation stage of materials (including preliminary planning work, preliminary approval, and listing preparation) is undoubtedly the most important. Why do you say that? Many cancellation cases of listed companies frequently occur, one of the important reasons is that the company has made sufficient preparations in the early stage, and internal control, compliance, finance, taxation and other issues have become obstacles in the company’s listing process, ultimately hindering the IPO process. Especially in the preparation for initial approval and listing, financial review is very important. In the “Digital White Paper on Growth Enterprise IPOs” jointly released by SAP and Yiou Think Tank, it was pointed out that financial issues are an important focus of IPO review. According to incomplete statistics, approximately half of the time a company spends on financial review during the IPO process.

How can we help companies accelerate their IPO process and successfully go public?

Looking at the listing of enterprises, research has shown that there are generally three main reasons for whether a company is listed or not: abnormal financial indicators, flawed information disclosure, and doubts about independence. Therefore, many companies are starting to worry that they are also stepping into such a pit, which will affect the IPO process. In fact, there is no need to worry at all. In recent years, more and more enterprises have undergone digital transformation, such as through SAP S/4HANA CIoud and other SAP cloud ERP systems, to help enterprises establish digital platforms, promote efficient internal auditing and control, and enhance the standardization of enterprise management; Establish an integrated and comprehensive risk and compliance management platform, unify risk insight, automate monitoring and early warning, and achieve embedded control.

For an upcoming IPO company, SAP S/4HANA Cloud can assist in preparing and managing the IPO process in multiple areas such as financial management, risk and compliance management, supply chain management, data analysis and reporting, human resource management, mobile office, and collaboration. For example, IPO review is the most closely related, and the financial management, risk and compliance management that enterprises are most concerned about:

Financial Management: SAP S/4HANA Cloud provides powerful financial management functions, including accounting, financial analysis, cost accounting, and more. This is very important for financial preparation and audit before IPO, which helps to ensure the accuracy of the company’s financial data and meet financial regulatory requirements.

Risk and compliance management: During the IPO process, enterprises need to comply with various regulations and compliance requirements. The SAP S/4HANA Cloud can help businesses monitor risks, ensure compliance with regulations, and provide relevant reporting and auditing capabilities.

More suggestions on corporate financing and listing

For companies hoping to go public, a comprehensive understanding of the various stages of corporate financing and listing, as well as a deep understanding of the key and difficult points of each stage, has become the key to coping with IPO approval and ultimately achieving successful listing. For more detailed information or suggestions on corporate listing, corporate financing listing, and corporate IPO, please click on the link below to obtain more exciting and detailed information and professional advice.

SAP S/4 HANA Cloud

This article "What are the key stages that a company needs to go through for financing and listing?" by AcloudEAR. We focus on business applications such as cloud ERP.

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