backdoor listing

Backdoor listing

Back Door Listing

Informal for reverse acquisition. An act in which a private company purchases a publicly-traded company and shifts its management into the latter. This allows private companies to become publicly traded while avoiding the regulatory and financial requirements associated with an IPO. In order for a reverse acquisition to happen smoothly, the publicly-traded company is usually a shell corporation, that is, one with only an organizational structure and little or no activity. The two businesses can then merge the private company's product(s) with the public company's structure. It also makes initial trading less dependent on market conditions, a key risk in IPOs. However, it is important to note that a reverse acquisition only provides the private company with more liquidity if there is a real market interest in it.

backdoor listing

Acquisition and merger with a listed company by an unlisted company in order to gain a listing on a securities exchange.
References in periodicals archive ?
The general misconception is that finding a company for a backdoor listing is as simple as-forgive my crude analogy-paying a bar fine at your favorite Roxas Boulevard nightclub.
H20), widely expected to be a potential backdoor listing for one of the businesses under his fast-growing corporate empire.
75 million as a possible vehicle for backdoor listing for its hotel-casino project.
MANILA, Philippines Davao-based businessman Dennis Uy may embark on an initial public offering (IPO) or a backdoor listing for his planned casino in Cebu.
Holding went public in Shenzhen through a backdoor listing, according to data compiled by Bloomberg.
What a backdoor listing is in its worst incarnation is an opportunity to get a listed business, which wouldn't be able to go through the front door," David Graham, the chief regulatory officer and head of the listing division at Hong Kong Exchanges & Clearing Ltd, said.
HK)'s investment project Focus Media, China's largest outdoor advertising firm and one of the country's largest media companies, has completed the approval process for a backdoor listing on the A-shares market through Hedy Holding Co.
Ltd, a provider of preventive healthcare services in China, which recently became an A share listed company through the backdoor listing of Shenzhen-listed Jiangsu Sanyou.
Platinum Group Metals Corp (PGMC) is introducing its nickel business into Seacem, making the way for its backdoor listing in the local bourse.
23 percent, and allow a backdoor listing of Kakao shares on the Kosdaq.
But to achieve a backdoor listing through asset injections, Alibaba would have to overcome similar hurdles to an ordinary IPO through the front door.
The said deal fuels speculation that Uy may use H2O Ventures for the backdoor listing of his firm.