Moms don't go public: IPOs aren't a way to grow a business

A statement
"old dry mother" did not go public, still created a proud performance;
the "old dry mother" brand hot sauce, Chinese consumers almost no one knows. Because of its unique flavor, "old dry mother" has become a commonly used seasoning in people's daily diet, and has even been out of the country. Just a few days ago, an online "old dry mother" founder Tao Huabi quietly withdrew from the company's report, the company and Tao Huabi has been in the past few years into our eyes. Tao Huabi, the founder of Old Mom, has given up almost all of her stake in the company to her son and stopped asking about the company's specifics.
, however, it was an old thing that happened three years ago. Only "old mother" is not a listed company, did not release relevant information to the market legal obligations, but to fulfill the relevant procedures of industrial and commercial registration, so it did not arouse people's general concern.
a product popular at home and abroad, actually is not a listed company, which is surprising. According to the description of China's capital market for enterprise listing, enterprise listing has many benefits, can open the door to financing to the market, can be stimulated by the market to achieve rapid development and so on.
, however, the family-owned company, which was registered in the early 1990s, has not been listed for more than 20 years, but has also made remarkable progress. Last year, in the difficult situation of many enterprises, the sales of old dry mother exceeded 4.5 billion yuan, 20 years of output value growth of more than 600 times. On average, 8 yuan a bottle of chili sauce is produced, 2.3 million bottles are produced every day, 45,000 tons of chili peppers are used a year, and more than 100,000 tons of vegetable oil are used;
for such an excellent enterprise, in more than 20 years, it is inevitable that the securities company's investors will cross the threshold. But the company's founder Tao Huabi adhered to her own "four no" requirements, "no tax evasion, no loans, no money, no listing", will be the various sayers out of the door. Tao Huabi believes, "listing, financing these things I do not understand, I only know that once listed, it may be dumped." Listing is cheating people's money, so I'm determined not to go public. According
the theory of modern market economy, her views are biased. However, these remarks also deeply touched on the inevitable side effects of corporate listing. The listing of enterprises, of course, can get huge financing, but this also means that the responsibility is increased, enterprises must be in accordance with the relevant laws and regulations for information disclosure, no longer have trade secrets to speak of;
, Chinese companies have maintained a strong enthusiasm for issuing shares and listing, so much so that Chairman Liu Shiyu's so-called "IPO is a lake". The emergence of this problem, in large part because the market only pay attention to the play of financing function, resulting in enterprises only see a large amount of money into the company's opportunities, while ignoring the risks posed by the listing of enterprises.
on the market policy side, only emphasize the IPO financing function, and for the market mechanism between the new and old shareholders, management to "pull the bias" to protect the interests of the company's original shareholders. It is this market atmosphere that has caused many companies to enter the IPO team without seeing the risk of going public. It is clear that both market management and market opinion have something to reflect on.
it is precisely because there are two sides to the listing of enterprises, so many overseas enterprises also insist on not listing, some family-owned 100-year-old shops can be passed down for generations, and this adherence is not untested. "Old Mom" did not go public, and still created a proud performance. Thus, IPO, listing, is not the development of enterprises, "Huashan road." In order to eliminate the current "IPO lake" and reduce the pressure on the capital market, the desirable way is not to speed up the pace of IPO approval, but to encourage more enterprises to learn from the "old dry mother", not only focus on the pockets of investors, but should work hard to do their business well. If enterprises really need funds, they can be issued corporate bonds and other ways to solve.
Zhou Junsheng (Financial Reviewer)