The Rebirth of the Male God Starts From Playing Games

  Chapter 351 348. Ready to go public

   March 14, 2007.

  It was a sunny morning. Although the weather was still cold and the temperature in the Imperial Capital was 1-2 degrees below zero, some willow trees in front of the company had already sprouted.

  After a while, you will be able to see the scene of flying cats all over the city.

  Some people like the scene of catkins flying in the imperial capital, because it is like the snow in the sky, every catkin is soft and looks really romantic.

  But Cao Yang doesn't like it very much, because once this season, he has intensive phobia, especially when the catkins fly in front of him, he always feels that he will be inhaled, causing him to cough constantly.

  So in the season when the catkins are flying, Cao Yang can not go to the streets without going to the streets, and can not open the windows without opening the window.

  On such a sunny morning, Cao Yang invited Chief Strategy Officer Liu Zhiping to his office and made the second most important decision in his life except for marriage.

   "I decided to go public." Cao Yang said.

   "Huh?" Liu Zhiping's eyes lit up.

   Didn’t expect that Boss Cao would agree to one day?

  He has been waiting for Cao Yang's words for a long time.

  Even Liu Zhiping himself felt that he might not have heard Cao Yang’s words about listing in his entire life. He was also planning to propose a spin-off and listing of the company. For example, Bomi Literature was listed separately and Bomi Music was listed separately...

  This is actually beneficial for the company to raise funds.

  It's just that the volume must be much smaller than the overall listing of Bomi.

   Judging from the current volume of Bomi Music, unless QQ Music is also included, the valuation will be at most US$1 billion.

  If the Bomi Group goes public as a whole, the valuation can be a horror, especially after the Bomi smartphones are sold, the valuation will have to rise a lot.

The last time Liu Zhiping approached Cao Yang to talk about listing 7 months ago. At that time, his valuation of Bomi was about 70 billion U.S. dollars. Now, when Bomi smartphones are on sale, Liu Zhiping’s valuation of Bomi should be calculated at 1,000. To around $110 billion.

Of course, this is not just the credit of Bomi’s smartphones. In fact, the release of Wandering Earth has achieved good box office results. Although it is a loss, the box office has broken records, and the capital is very optimistic about the future development of Bomi Pictures, especially in 3D special effects, so the valuation will increase instead.

   Then add Bomi’s own growing business, games, QQ, music, information platforms, literature...Even if the mobile phone business is taken away, Bomi’s current valuation is at least US$80 billion.

  Bomi has grown into a giant after such a long time.

  Whenever he thinks of this, think of the fields and businesses that Bomi Company is involved in, Liu Zhiping has a shuddering feeling.

  ……

  Then, to this day, I can actually hear the words [listing] from Boss Cao’s mouth. Liu Zhiping’s first reaction is—

  A miracle happened!

"Okay."

  Liu Zhiping was taken aback for a moment, then pulled the chair away and sat down in front of Cao Yang.

  Because of excessive excitement, when he sat down, he accidentally knocked over the tea cup on the table.

  Fortunately, there is no water in the teacup.

  He hurriedly tidied up the desktop, and then started to boil hot water skillfully next to him.

   "So... how are we going to go public?"

  In fact, during this period of time, Cao Yang himself has considered a lot.

  He wants to be listed at this time, there are several very important reasons:

  First, it must raise funds to relieve Bomi’s expansion pressure.

  Listing within this year is the best, so as to raise enough funds before the outbreak of the financial crisis in 2008.

  This money can help Bomi do many things.

Second, it is more in line with the interests of employees. After the listing, Cao Yang is going to put out a part of the equity as a reward pool. At the same time, it will also issue a certain amount of options to the current employees of Bomi, which can then be purchased at a relatively cheap price. Specified amount of Bomi stock.

  This method will make employees richer faster than giving out bonuses.

For example, the company earns 40 billion a year, of which only 1 billion may be used to give bonuses to employees, but when the company conducts an IPO, the entire company suddenly receives a large influx of funds, and employees can also rely on their own The shares in hand have gained a lot of wealth accumulation.

Third, to provide the company's influence and credibility. After the listing, the valuation of Bomi's volume directly exceeded 100 billion U.S. dollars, which is shocking all over the world. That is to say, the day when the company went public was quite Yu declared to the world--

  In the east, a dragon has risen.

  The name of this giant dragon is 【Bomi】

  Now Bomi’s valuation is a lot higher than Apple.

  A valuation of US$100 billion has already allowed Bomi to be the number one player in the world.

  In fact, it’s normal to think about it. The current Bomi is equivalent to Penguin + half an apple + half Google + V agency + Alpha + reading + Netease...

  What terrible monster is this?

  So the valuation of 100 billion US dollars is already considered a conservative estimate.

  ……

  During this time, Cao Yang has done a lot of homework for the listing.

  First of all, after a long period of thinking, Cao Yang believes that going public is definitely going to be listed, and that the entire Bomi Group should be listed, so that the funds raised are the largest.

  In the future, if the subordinate company develops to a certain size, it is also feasible to split it out and go public separately.

  Splitting and listing is also due to the needs of money and the development of high-level branch companies.

  Because there are so many equity in the head office, you want to attract more high-end talents to enter the market. I am sorry to split the equity of the head office and use the subsidiary to go public. It is also necessary to maximize the benefits of these new talents.

  Then is based on the overall listing of Bomi Group. Before that, Cao Yang had several concerns:

  The first one is whether it is possible to not be listed in the U.S., but put the stocks on the U.S. market to sell, so that you can cut a wave of leeks in the U.S.

   Liu Zhiping told him about this problem before.

  Listed in Hong Kong, it can be sold on the U.S. market through ADR, and more funds can be raised through U.S. stockholders.

  Regarding supervision, we still rely on our motherland. Compared with listing on Nasdaq, the risk is much smaller.

  It is very important to rely on the motherland. Bomi can enjoy the relevant policies and also has a huge protective umbrella.

  The second issue that Cao Yang is more worried about is--

  When the company goes public, will it be eliminated due to the dilution of the founder’s shares, or the company’s control right is not in its own hands?

  It’s also very complicated to say——

  One thing about China’s listing is not so good, that is, there is no different rights to the same shares, which is the legendary AB share mechanism.

  The company divides the stocks into two levels: A shares and B shares. The A shares issued by external investors only have 1 vote, while the B shares held by the management have N votes per share.

  For example, many high-tech listed companies in the United States mostly adopt AB shares, and N usually takes 10, so that the founding team has 10 times the voting rights of its shareholding ratio, thus firmly controlling the management voice of the company.

  However, Class B shares cannot be publicly traded. If you want to transfer, you must first convert into Class A shares with "one share, one vote".

  Although Class A shares have suffered a loss in voting rights, they are often compensated in terms of profit distribution and priority compensation.

  Because the founder is the soul in many companies, and the purpose of investment by many capital tycoons is only to obtain substantial returns, and does not need to obtain control of the company, AB shares have been used in many high-tech innovation companies.

  Therefore, in order to maintain their control, the founders of many companies choose to list on the US Nasdaq, such as Baidu, JD...

  Listed on the Nasdaq, it is possible to have the same share different rights mechanism.

  JD Group CEO Liu Qiangdong owns 15.8% of the shares, but has 80.2% of the voting rights, because he basically holds B shares, and B shares have a higher proportion of voting rights.

  ……

  Now that it has been decided not to list in the U.S., but to Hong Kong, then the AB share method cannot be used.

  So Cao Yang decided to take the Ma Yun route.

  Ma Yun, who was the boss of Ali Group in the previous life, after the company went public, with the continuous dilution of the shares, Ma Yun only accounted for 8.9% of the company's shares.

  Executive Vice Chairman Cai Chongxin accounts for 3.6% of the shares;

  Yahoo and SoftBank hold 22.6% and 34.4% respectively

  Other Alibaba executives account for 30.5%

  SoftBank has a large holding, but Ali is not in charge of Sun Zhengyi, there is a lot of knowledge in it.

  In general, Alima has done quite well on four levels.

  First is the control of equity. Ma Yun adopts voting rights delegation and concerted action agreement, and then adopts comprehensive control methods for different objects.

   Aiming at Ali’s eighteen arhats, that is, Ali’s first 18 founders, Ma Yun adopted the voting power delegation method, and concentrated all the voting rights of the entire eighteen arhats in Ma Yun alone.

  In this way, Ma Yun has the highest decision-making power, and he can exercise his own decision based on the [voting rights delegation] agreement.

   Then for external investors, Ma Yun signed a concerted action agreement with them.

  What is a concerted action agreement?

  When the company encounters a major decision, these investors who have signed a concerted action agreement need to be consistent with Ma Yun’s opinions.

  The second is the control of the board of directors.

  First, it is the control of the board of directors. Before Alibaba went public, there were a total of four board seats, two of which were controlled by Ma Yun's team, and the other two were held by SoftBank and Yahoo.

  Even if Yahoo has a 40% stake in Ali, it only has one board seat.

  So Ma Yun's team accounted for half of the number of director seats.

  Then there is the famous lakeside partner system. This system has a very core content——

  Partners have the power to nominate directors.

  And it will be formally implemented after voting by the general meeting of shareholders.

  If the director resigns early, the partners will nominate the interim director until the next general meeting of shareholders.

What does that mean?

  As permanent partners, Ma Yun and Cai Chongxin have the right to nominate directors. In other words, who is the director of the board of directors must first be nominated by the two of them, and they agree.

  So they have the right to nominate directors.

  The directors nominated by them need to be approved by the general meeting of shareholders.

  Then because of the previous concerted action agreement, it is equivalent to Ma Yun as long as they agree, then Yahoo and Softbank must agree with Ma Yun, and this nominee will definitely pass.

   is equivalent to Ma Yun controlling the entire board of directors.

  In other words, regardless of the equity level or the board level, the number of nominees for the board of directors is firmly in the hands of Ma Yun.

The third management power control, Ma Yun's team has control of daily operations and management at the company level, especially Ma Yun, all company executives, and even everyone below him can be appointed, the initial team is Ma Yun's own direct line Everyone in the team listens to Ma Yun.

  So, whether it is Yahoo or SoftBank, these external investors want to participate in the company's control is basically impossible.

  Fourth is Ma Yun’s personal charm, also known as soft power.

  For a long time, people mentioned that Ali would only think of Ma Yun. It is hard to think of any other soul figures in Ali.

  Compared with Alima, Xiao Ma is a bit too low-key.

Especially the boss of Perfect World, Chi Yufeng, many people don’t know what his name is or who the boss of Perfect World is. They can’t even remember the impression. Compared with these Internet bigwigs, Chi Yu Feng is simply a transparent person.

  In fact, holding and controlling rights are two different things, and the partnership system is used to firmly control Ali’s power in his own hands. Although SoftBank and Yahoo are major shareholders, they have no decision-making power, and participation in decision-making events is almost zero, so Sun Zhengyi is just an investment.

  Now, Cao Yang plans to adopt the same method.

  Ma Yun used several conditions to control the company.

  Now Cao Yang has the following two items:

   which is--

  Cao Yang has the right to appoint and remove the personnel of Bomi Group.

  His prestige in the Bomi Group is very high.

  Bomi’s initial team was brought up by Cao Yang. Most people agree with Cao Yang, but he is the first to look forward to it.

  At the same time, a series of major decisions made by Cao Yang in recent years have allowed the company to maintain rapid growth.

  Except for film and television, the decision made by Boss Cao has basically not lost any money. Moreover, Boss Cao's big picture and super far-sighted vision can be matched by no one.

  In society, Cao Yang also has a wide range of influence and has a very strong personality charm.

  So now Cao Yang only needs to fix the first few items.

  "First of all, I want to use a voting rights delegation agreement to allow the company's current shareholders to delegate the voting rights to me after the future listing." Cao Yang said, "This is the first point."

  "Then, the company plans to have external investors in the future. If the share of the stock exceeds 5%, it must sign a concerted action agreement with us."

   "Huh? A concerted action agreement?" Liu Zhiping asked suspiciously.

  Cao Yang explained it to him, and Liu Zhiping suddenly realized it.

   "Awesome, this agreement for people acting in concert can basically guarantee the control of our team."

  Liu Zhiping had been worrying about this matter before, because there is no AB shares when listed in Xiangjiang, that is, the same shares have the same rights. As many shares you own, you have as much voting rights.

  It now appears that Cao Yang has solved this problem.

  Liu Zhiping really admired Cao Yang.

  Then Cao Yang told Liu Zhiping about the board of directors seats, the related nomination system, and the partnership agreement...

  Liu Zhiping was stunned.

  Who would have thought that Cao Yang had figured out so many things in so many months?

  About half an hour later, Liu Zhiping heard Cao Yang's narration completely and couldn't help but pat his thigh.

  "Great, this way, no matter what happens, we have a firm grasp of the control."

  To be precise, it was Cao Yang who held the control firmly.

  Everyone in the company has great admiration for Boss Cao. I believe that the major shareholders will sign these agreements, and the cohesion within the team is very strong.

  It is really lucky for everyone to be able to ride the wind and waves with a great helmsman like Boss Cao.

   "And more importantly, we can release a large number of stocks and raise more funds." Liu Zhiping said.

  According to the normal listing process, Cao Yang had to hold more than 67% of the company’s equity in order to firmly grasp the control.

  Now because after adopting such a complete and rigorous control method, even if Cao Yang's share is not the largest, he can still have the highest control.

  Even if Cao Yang's shares are diluted to 10%, he can firmly control the Bomi Group under 7%.

  The shares released will naturally raise more funds.

so amazing!

  Liu Zhiping thought, Cao Yang's articles are really intertwined and wonderful. It is difficult for ordinary people to come up with such a tight control agreement.

  ……

  Since the discussion of control rights is no longer a problem.

  The rest is related to the future listing.

  "First of all, the equity structure," Cao Yang said, "Now I own 78% of the company's shares."

  For the remaining part, Xiao Ma has the highest proportion, with 7.2%. After all, he is the earliest partner of Cao Yang, the founder of the company Penguin. In order to keep Xiao Ma, Cao Yang still divided a lot of shares out.

   Then Liu Zhiping accounted for 3.4%, Liu Guangran 3.8%, Ai Xiaomi 2.4%, Liu Qiang 2%, Zhang Zhidong 1.2%...

"The company’s valuation is at 100 billion U.S. dollars. If it’s converted into Hong Kong dollars, it’s about 800 billion Hong Kong dollars. Regarding the valuation and issue price, you can calculate and deal with it, and then when you talk to the underwriters, As far as possible, the valuation should be reported higher within a reasonable range."

   "Okay." Liu Zhiping nodded.

  "My idea is that when an IPO is made, 50% of the company’s shares will be diluted equally by all shareholders for the issuance of shares, and a total of 2 billion shares will be issued.

  The valuation per share is around US$50. "

  There is no way, because the volume of Bomi is really too big, so in order to prevent the issue price from being too high, it is so high that people are afraid to buy it, so the problem can only be solved by expanding the number of issues.

  But 50 US dollars is already quite high, and even according to Cao Yang's idea, the price should be cut below 25 US dollars, which is a reasonable range of 200 Hong Kong dollars. In this way, Bomi is equivalent to directly issuing 4 billion shares.

  This number is quite scary.

  According to Liu Zhiping’s previous vision, in order to control the company, it is more appropriate for Cao Yang to retain at least 70% of the equity in his hand, then the total dilution ratio will not be too much, which is expected to be about 10%.

  Then the amount of issuance can be much smaller than the current figure, about 160 Hong Kong dollars, 500 million shares, and a total of 80 billion Hong Kong dollars have been raised. Equivalent to 10 billion U.S. dollars.

  But the several control agreements that Cao Yang just proposed have basically decoupled his control from equity, and naturally Bomi can raise more funds.

   is 10 times more directly, which is simply an astronomical number.

  Liu Zhiping smiled bitterly, unable to accept this reality for a while.

  This means that Bomi can become extremely rich all at once.

  As long as it goes public, Bomi’s raised funds can reach the terrible US$100 billion, and doing anything with this money is like throwing a big bomb.

  "But...for such a large IPO, I don't know which underwriters would dare to take this job." Liu Zhiping said with some awkwardness.

  Stock underwriter refers to a securities business institution that exclusively underwrites or takes the lead in organizing an underwriting syndicate in stock issuance.

  Internationally, stock underwriters are generally held by merchant banks, investment banks and large securities companies with good reputation and strong strength.

  In my country, generally qualified securities companies or trust and investment companies that also operate securities are responsible.

  The law requires securities underwriters to assume responsibility for guarantees.

  To a certain extent, the reputation of a first-class securities underwriter guarantees the securities it underwrites.

   Therefore, the status of securities underwriters will actually greatly affect investors.

  Ordinary investors believe that first-class securities underwriters will not underwrite bad securities, and that the securities they underwrite will be suitable for the public to hold, and the issuance of securities must meet their underwriting standards.

  Therefore, for large companies like Bomi with a valuation of more than US$100 billion, there are not many underwriters in the world who dare to follow.

   "It is estimated that in the end, we should find multiple underwriters to do this together." Liu Zhiping said.

  According to the volume of Bomi,

  The price is high, the risk is high, and no underwriter has done such a large-scale IPO so far

  It is impossible for one or two or three underwriters to contract. Only multiple underwriters can cooperate to help Bomi to raise the funds they want.

  Only underwriters can get their own corresponding remuneration.

  "We can bid globally," Cao Yang said, "you can handle it."

  Cao Yang didn't worry about this problem at all.

  Because Bomi’s revenue capacity lies here. Bomi mobile phones, games, communications, information platforms... all are extremely profitable departments. Last year, Bomi’s turnover reached a terrible 42.3 billion.

  Bomi’s revenue this year, led by mobile phones, is hopeful to break the 100 billion mark.

  Now that the first quarter is not over, Bomi smartphones have brought in more than 15 billion revenue.

  If other suppliers can be found this year, Bomi’s revenue from mobile phones alone may exceed 60 billion.

  Investors must have full confidence in Bomi, and now the capital is very optimistic about Bomi.

  So Cao Yang does not worry about whether anyone will buy the stock after listing.

  ……

  "Okay." Liu Zhiping nodded, "I will prepare the materials when I go back today, and then send out the bidding information tomorrow, and prepare for the listing process at the same time."

   Generally speaking, it takes about 6 months to 3 years for a company to go public for the first time.

  Preliminary preparations from 3 months to a year are normal.

  Of course, in addition to the green light of Didi, companies that took only 20 days from submitting an IPO application to successfully listing are excluded.

  Fortunately, Liu Zhiping himself has been doing relevant preparatory work for a while. He didn't expect to be able to use it today. Otherwise, the listing of Bomi would have to be delayed a lot.

  According to Liu Zhiping’s estimation, given him about one month, he will be able to sort out the information and submit the IPO application to the relevant departments. If the entire process is fast, the goal of listing can be achieved in the fourth quarter of this year.

   is what it looks like in November or December.

   "If it can be done within this year, it will be done within this year." Cao Yang said, otherwise it will be delayed until 2009 before listing.

   "Huh?" Liu Zhiping looked at Cao Yang a little strangely, didn't understand what this meant?

  Do you skip 2008 directly?

   "Hmm." Cao Yang nodded, "I'm afraid of being affected by the U.S. side. I was reading news related to the U.S. financial industry recently. I found that there is a crisis that may not be taken seriously by people."

  The U.S. subprime mortgage crisis began to have some small clues in February this year.

  According to the development of previous lives——

  About the end of this year, the subprime mortgage crisis will break out in the United States, and then quickly affect the world, causing a global financial crisis.

  At that time, even China will be affected.

  By July 2008, China had changed to “proactive fiscal policy and moderately loose monetary policy”.

  This is a 180-degree turn, which is forced by the situation and is a last resort.

  At the end of 2008, in order to cope with the impact of the financial crisis and at the same time to cope with the United States’ flood and the global launch, China released 4 trillion yuan.

  The impact of this financial crisis is very far-reaching.

  It will cause the stock prices of many companies to fall sharply, for example, Lenovo is one of them.

  Especially the real estate industry in the U.S., it was cut in half at the beginning.

  People wake up every day to find that housing prices have fallen again.

   "I am mainly afraid of being affected." Cao Yang said, walking to his desk, turning on the computer, and showing Liu Zhiping some recent news reports from the United States:

  “On February 13, 2007, HSBC Holdings increased US$1.8 billion in bad debt provision for subprime mortgage business in the United States

  U.S.'s largest subprime mortgage company CountrywideFinancialCorp reduces lending

  NewCentury Financial, the second largest subprime mortgage lender in the United States, issued a profit warning

  March 13, 2007

  NewCentury Financial declared bankruptcy

  US stocks fell sharply, the Dow fell 2%, the S&P fell 2.04%, and the Nasdaq fell 2.15%"

  Cao Yang frowned and said, “I am worried that these loan businesses in the United States will accumulate to an unmanageable level, which will cause a large-scale financial collapse.”

  The subprime mortgage crisis is very complicated and simple to explain:

In order to stimulate the economy, the bank adopted a very loose lending policy, and then allowed many people to get high loans at a very small cost. Some of these people have relatively low credit and may even have the ability to repay debts. No.

  But the relevant lenders turned a blind eye to these situations, because at this time the United States advocated that using future money to enjoy the current life is a very conducive way of capital operation.

  You are equivalent to directly exploiting the wealth of most people in the next ten to twenty years.

  So loans are very common and large-scale.

  At that time, because of the high housing prices before, the bank believed that even though the loan was given to the subprime credit borrower, if the borrower was unable to repay the loan, it could use the mortgaged house to repay the loan, auction or sell it and recover the bank loan.

  But due to the sudden drop in housing prices and the borrower is unable to repay, the bank sells the house, but finds that the funds obtained cannot make up for the loan + interest at the time, or even the loan amount itself, so the bank will lose money on this loan.

  It is okay for one or two borrowers to have such a problem, but due to the increase in interest on installment payments, and these borrowers themselves are sub-prime lenders, this has resulted in a large number of borrowers who cannot repay their loans.

  Because there are too many people taking loans, and many of them are borrowers with lower credit, they are unable to repay the interest, so ——

  Banks repossessed houses, but failed to sell them at high prices, resulting in large losses, triggering a subprime mortgage crisis.

  After this, it is like a domino, you gently push a piece, causing a chain reaction.

  From the previous life to August 2007, the US subprime debt crisis spread and the European Central Bank intervened. Central banks around the world injected more than US$326.2 billion in 48 hours to rescue the market. The Federal Reserve injected US$38 billion into banks three times a day to stabilize the stock market.

  It is impossible for the United States to let the rice stocks collapse, because this is fate.

  So I can only release water.

After    until 2009, the world can only respond to this financial tsunami by releasing water on a large scale. There is no other way.

  Because the rice dollar is the world currency, most countries’ foreign exchange is linked to the rice dollar. Once the goods go wrong, you will suffer.

   is equivalent to the problem of the United States, let the whole world take the blame.

  China was also forced to release 4 trillion yuan at the end of 2008.

  After Cao Yang's analysis of some clues that have been revealed at present, he also throws out some predictions about what may happen in the future.

  Liu Zhiping was a little frightened.

   "I'll study this."

  If, as Cao Yang said, the U.S. loaned too many subprime credit incapable repayments, then it might really trigger a financial tsunami.

  And according to Liu Zhiping's hunch--

  This time the financial earthquake will be more serious than the disaster caused by 9/11.

  At that time, there will be a full-scale spread, and it may be really risky to be listed in Xiangjiang.

  ……

  At this moment, Liu Zhiping finally understands Boss Cao’s good intentions.

  Because he was uncertain whether a financial crisis would break out, he had to urge Liu Zhiping to go public soon.

  In this way, before the financial crisis reaches China, enough funds can be raised through the stock market.

  Once the funds are raised, the money will not change with the fluctuation of stock prices on the stock market.

  The funds are actually lying in Bomi’s warehouse.

  ……

  After Liu Zhiping left, Cao Yang gritted his teeth and showed an imperceptible smile on his face——

  For those who foresee disasters, maybe this is an excellent opportunity, maybe?

  ……

  ————————————————————————————————

  There is no update today.

   begging for a reward

  Thank you all

See you tomorrow

  (End of this chapter)