Recently, the introduction of the car market makes lots of independent parts manufacturers expand. They offer assemblies for that domestic automobile business. A number of them become suppliers who offer products for well-known worldwide enterprises. Following a lengthy duration of accumulation, these businesses are not convinced using the present status. They would like to enhance their market competitiveness through going public. Included in this, there are lots of transmission and equipment manufacturers.
A lot of companies are get yourself ready for going public. For instance, in June, Hangzhou Advance Gear box Group Co., Limited. approved the IPO (initial public choices). The corporation focuses on producing all sorts of gear drives, including automotive transmission. Besides, additionally, it designs and manufactures powder metallurgical products. It’s reported that Hangzhou Advance Gear box Group promises to issue 101 million shares on Shanghai Stock Market. The elevated funds will mainly be committed to four projects, including intends to invest $ 30 million Yuan within the technology development and research projects of automatic transmissions.
Transmission companies seek listing positively meanwhile, gear information mill a little way behind. For instance, a business in Zhejiang Province which focuses on automotive gears intends to issue $ 30 million shares on Shenzhen Stock Market and lift about 400 million Yuan. It promises to with funds around the expansion project about gear replenishment.
The prosperous automobile market accelerates the popularity of going public. Chen Jianxing stated there are three companies within the automotive parts business. Aside from one company that is producing automotive transmission, another two information mill in producing wheel hub unit and shocks.
There are other and much more auto parts enterprises make an application for going public in comparison to the same period in the past years. You will find maybe two reasons. The first is that automobile industry plays a increasingly more important part within the national economic development. Some competitive enterprises within the automobile parts industry have become mature with the introduction of the car industry. Another is the fact that sales of numerous parts enterprises achieve significant growth. It’s a good possibility for individuals companies which plan to go public.
Raising funds is an essential objective for businesses to visit public. However the report on enterprises isn’t restricted to this. It’ll have much effect alternatively facets of companies.
Additionally to financing, going public can enhance the mechanism system and control over enterprises. Most parts companies within the domestic market are private enterprises. Generally, their scale is small , the management is quite unscientific. Your opportunity will offer you new needs for the organization management. Additionally, following the listing, the business’s market position, brand image, and market acceptance is going to be further enhanced.