backdoor listing

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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 ?
We were pricing an IPO but in the end we performed a backdoor listing," says Ms Mei, who adds that a similar business culture in the US and Australia is a bonus.
Ltd, ("Meinian"), a leading 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.
Key Topics Covered: Policy on grain purchasing and subsidy implemented again Cooperation between seed enterprises and research institutes: undesirable GM foods rejected by most Chinese Beidahuang Kenfeng terminates cooperation with SOPO on backdoor listing Winall Hi-tech to establish three subsidiaries Oversupply in China's corn seed market and revelations from it Brief introduction of Guangdong corn seed market Analysis on corn variety Demeiya Analysis on China's cotton seed market from industrial chain perspective Inner Mongolia's grass industry confronted with challenges
But to achieve a backdoor listing through asset injections, Alibaba would have to overcome similar hurdles to an ordinary IPO through the front door.
Guangdong Zhenrong would have acquired the storage assets and become a public company through a backdoor listing.
The backdoor listing of ARC was thought to happen sometime in the first quarter of the year.
The ongoing reorganization of Shandong Huayang and Zibo Hongda now runs aground due to some reasons, such as most of the assets of Zibo Hongda are still under pledge period and this situation will continue in the near future, Chinese government may not approve mining company's backdoor listing, etc.
Reportedly, 39 Chinese real estate companies will go public through an IPO or backdoor listing, including Evergrande Real Estate Group, Rongqiao Group and Landsea.
had stated that contract could pave the way for a backdoor listing transaction, while LMG Chemicals, which is enrolled into trading of chemicals, has not set business plans.
Unlike the backdoor listing model, the WRASP process requires WestPark's client companies to undergo full SEC review and subject themselves to diligence by the respective exchange, before any trading in the stock is done.