Study of the transaction structure design of backdoor listing, taking company A as an example of backdooring company B

Abstract

With the development of China's market economy becoming more and more perfect, companies with increasing demand will enter the securities market to seek financial assistance. Due to the cumbersome and time-consuming IPO process, many companies are in a critical period of development. In order not to miss development opportunities, some companies will choose to acquire listed companies and complete their listing through backdoor financing. This article takes company A's successful shell listing of company B as the starting point to explore how home furnishing enterprises can raise funds through shell listing. The case of company A's backdoor listing is representative and advanced in the home furnishing industry. Company A overcame the equity dispute and landed in the A-share market with the approval of the CSRC within one year, which shows that company A has a bright spot in the design of the transaction structure. Transaction structure design refers to the combination and adjustment of financial, asset, and personnel resources by the main companies between the two parties in the transaction process, in order to design a more favorable and mutually recognized solution for market transactions, which can enable both parties to quickly complete delivery during the transaction process.