Reinventing the Millennium.

Chapter 246 Making Investing Great Again ([-] in [-])

Just when Yike made a gratifying breakthrough in the domestic market, Fang Zhuo in New York encountered two troublesome problems.

The process of finding a shell for private equity funds was very fast, and all procedures were completed at the end of December.

The business scope is the CDO and CDS of Chinese concept stocks and subprime loans. The former is a very small field at present, because there are not many Chinese concept stocks in Nasdaq. The latter needs to be treated with caution and will not be launched immediately. .

Therefore, this type of MIGA fund, whose name is abbreviated as MIGA Fund, is considered a private equity fund.

Fang Zhuo named the fund without much discussion. Its full name is Make Investment Great Again, which means "make investment great again".

Kong Yu was a little confused about this, why did he add Again?How is it again?No previous investment experience.

Fang Zhuo's explanation is - I am the boss, so listen to me.

Kong Yu was relieved. MIGA was better than MIG in terms of pronunciation alone. The former could be transliterated into Mijia, but the latter could not even be spelled in pinyin. The boss got up well.

However, as an investor, Li Xinyue learned that NetEase was a stock she wanted to buy when she was concerned about fund investment. After a simple inspection, she asked a question: "Mr. Fang, isn't NetEase suspended? Buy it What's the reason?"

Only then did President Fang Da of the Mega Fund know that the NetEase stock he had handpicked was suspended on Nasdaq, and it had been suspended for five fucking months...

Fang Zhuo's back was sweating at that time, and he was so busy every day that he really didn't notice this detail.

Fortunately, the president with rich experience did not change his face. He started talking about the reasons why the fund will buy this stock from the impact of the Internet bubble and the development of the domestic industry, and finally expressed his firm attitude that he should believe in his own professionalism.

Li Xinyue went from being half-believing to 0.8 believing to 0.2 doubting to understanding eyes full of wisdom, all of which were seen by Kong Yu.

Kong Yu is a project manager from the domestic 3i Group. In China, a region with a weak venture capital base, he is usually responsible for analyzing whether a specific company is worth investing in. In the past few days, he has followed the process of foreign private equity, and has a deep understanding It turns out that Fang Zhuo is a layman more than himself.

It seems that in the eyes of this president, as long as he points out the direction, the subordinates can wait to make money by operating and buying.

Unfortunately, the only investor that has been raised can still maintain trust.

What's the matter?

On the other hand, Fang Zhuo was very satisfied with Kong Yu, who said he needed to learn a lot, and he was quite good at popularizing some professional terms.

"Mr. Kong, why did you say that NetEase has suspended trading?" Fang Zhuo waited until the investor who questioned him left before he was full of worries.

"Mr. Fang, I thought you knew...I thought you meant to wait for it to resume trading before buying...NetEase was suspended because of a problem with its financial report." Although Kong Yu's last job was a The initial investment of start-up companies can also easily know the situation of several domestic companies going public in the United States.

"Then when will the deal resume?" Fang Zhuo was very troubled.

Kong Yu was silent.

After a while, he asked cautiously: "The situation of NetEase looks very bad, Mr. Fang, should we consider other stocks more? The stock price of NetEase before the suspension seems to be less than US$1, and it is likely to be delisted by Nasdaq risk, this time may not be the right time to start."

Delisting means that the stock is terminated from listing.

"It's less than 1 dollar, it's really cheap." Fang Zhuo only has this feeling. As for delisting or not, he can be sure that the risk is very low. If there is any butterfly effect affecting here, then he will admit it.

Kong Yu soon found out the specific data. NetEase's stock price is now US$0.68. Its listing price last year was US$15.5.

According to Nasdaq's regulations, if a company's stock price falls below $30 for 1 consecutive trading days, it will receive a 90-day warning period. If it cannot return to $10 for 1 consecutive trading days during this period The company will be delisted.

"Then wait for NetEase to resume trading. I guess Ding Lei should be worried because it's less than $1. It's just a gift for him." Fang Zhuo made a decision without hesitation.

As far as NetEase's stock is now, the money from the Mega Fund can easily boost the stock price.

The market value of the entire NetEase on NASDAQ is just over 2000 million U.S. dollars... The 1000 million U.S. dollars raised by a grass-roots team like Mega Fund is enough to buy half of NetEase.

Of course, enough to buy and whether you can buy it are two problems.

All in all, NetEase stock is the epitome of several Chinese stocks currently listed in the United States, and it cannot be more miserable.

——As a Chinese, how could Fang Zhuo sit idly by and watch this situation, of course he generously donated money to help.

Kong Yu felt that this reason was more reliable than the boss's optimism about the stock price increase.

Soon, on the last day of 2001, the Nasdaq Stock Market Management Committee announced that it would resume NetEase stock trading at 2002 a.m. Eastern Time on January 1, 2.

Kong Yu felt bad when he heard the news.

Fang Zhuo was very happy. The trouble of not being able to buy NetEase stocks will be resolved in two days. Isn't this the will of God, oh no, isn't this the will of God?God let me buy stocks on Nasdaq.

"Mr. Fang, do you really want to buy NetEase at this time?" Kong Yu expressed his opinion tactfully.

"Really, there is nothing to hesitate. Although I don't understand the stock market and operations, I know value investing, and that's what we have to do." Fang Zhuo had a good reason again, "Portals such as Netease and Sohu are popular in the market." There is a considerable value in the country, which is ignored by the Americans, $0.68, which is simply white whoring.”

Kong Yu felt that he had done his best, so he had no choice but to follow the boss's "value investment" intention and start making preparations for buying after the resumption of trading.

Two days later, NetEase resumed trading on time at 10 am, and the tradable shares could be traded again.

January 1nd was the first sale of MIGA Fund. The target was Netease, one of China's four major portal websites, whose stock price was $2 for more than five months.

At the end of the day, NetEase’s stock price opened at $0.68, with a maximum of $0.92 and a minimum of $0.66. The trading volume was 125000 shares, and the stock price closed at $0.84, an increase of 23.53% from the closing price of the previous trading day.

The price of NetEase stock is too low, and a slight fluctuation can be called a big rise.

Although the MIGA fund is newly established and most of the recruits are newcomers, buying stocks with money is an operation that even interns can complete. Everyone is not in a hurry to raise funds quickly to avoid raising costs.

For the next few days, the trading volume of NetEase stock was around 15 shares, but even so, its stock price quickly rose to more than $1 and remained stable.

截止到1月15号，MIGA基金已经花费180万美元买入了网易的152万股，占网易总股本5.05%。

On this day, Kong Yu had to find Fang Zhuo, who had been in contact with IDG America for two consecutive days, and reported a piece of news to him.

"Mr. Fang, uh, NetEase's stock fluctuated a little yesterday. Our buying volume has increased a little bit, touching the 5% mark line. We have to notify the US Securities and Exchange Commission and NetEase for an announcement."

According to Nasdaq's requirements, the exchange and listed companies must be notified when the purchase of more than 5% of the tradable shares is purchased, and at the same time, the notification must be continued for every 1% more.

"Announcement, needless to say about our specific situation, is that MIGA Fund has become a shareholder of NetEase, and we help him raise the stock price, and it is not a hostile takeover." Fang Zhuo is very calm about this matter, MIGA Fund is registered in the Cayman Islands , passing through two Xiangjiang companies in the middle.

Because the Cayman Islands does not register the information of directors and shareholders, it is difficult to find out the owner of the offshore company and the relationship between the company and the foreign trade company. Of course, this is not absolute.

"Then should we continue to buy? The price of NetEase is still rising." Kong Yu asked.

"Buy, buy as much as you can, buy as much as you can, NetEase has a total of 15% of the outstanding shares, how much can you spend." Fang Zhuo gave instructions.

Kong Yu nodded in understanding.

According to this posture, NetEase, one of the four major portals in China, will receive a File notice from the US MIGA private equity fund every two days.

In fact, with only the current 5.05%, it has become one of the top ten shareholders of Netease, and it is necessary to disclose information in the annual report.

After these days of buying operations, Kong Yu was already wondering whether the boss had communicated with Ding Lei of Netease, or simply had some insider trading. Otherwise, how could he buy so mindlessly?

Could Mr. Fang, who is not afraid of gasoline, dies in venture capital, and working hard for his foundation, be so brainless?
If the answer is no, then he must have deep reasons for doing things.

Kong Yu thought he could already guess the reason.

Therefore, he also quietly bought some NetEase shares yesterday, as a way to verify whether the boss has any fucking brains.

"Look at the situation at NetEase. Please report to me the latest operation. In two days, you can buy Sohu at the same time." The brainless Fang Zhuo released a new task.

Kong Yu made a joke: "President Fang, don't you want to buy all the major domestic portals? When you get off the plane back home, let the chairman of these companies pick you up?"

"No, Sina doesn't buy it, it's very chaotic now." Fang Zhuo shook his head, frowning, expressing emotion, "The boss of the company can't be a fool, otherwise the founder Wang Zhidong who was expelled by Sina is the most vivid example. "

Kong Yu knew that the boss had been in contact with IDG USA for the past two days, so he was moved and asked, "Is there a problem with IDG?"

Fang Zhuo said concisely: "The lion opened its mouth wide."

Kong Yu guessed something about the situation, but he saw that the boss had no intention to continue, so he didn't ask. He just talked about the funding situation of the MIGA fund and left.

He took the elevator downstairs to the hotel and ran into Pan Ben who was in a hurry. He said hello, looked at the other person's face, and didn't say much. Now, he has completed the triple jump from VC to enterprise to PE...

Although the process of this jump is a bit strange, the work tasks are indeed completely different from before.

Pan Ben also didn't chat with Kong Yu. He knew that this guy was helping Mr. Fang with the stocks, so he didn't want to deal with it more in his heart.

"Mr. Fang, how are you doing?" Pan Ben saw Fang Zhuo with a dignified face, and asked about his second meeting with Miller at the IDG headquarters.

He followed him during the first appointment, and the conversation didn't go well at that time, and it didn't seem to go well this time either.

Fang Zhuo shook his head: "IDG wants to take too many shares. They are really rich if they are rich. They want to take 30% directly in this round. Is it because I want to talk?"

Pan Ben frowned.

Fang Zhuo smiled, and continued: "IDG Huaxia already holds 13% of Yike Technology's shares, and IDG America wants 30% of the entire A round, and set up an option pool. What do you IDG want to do?"

Pan Ben felt that he had suffered a disaster for no reason, Mr. Fang, Mr. Fang, you and I are "we", shouldn't it be tacit understanding.

He felt that Xiong Xiaoge was kind to him, so he still said: "Mr. Xiong is more independent, and he probably won't rush to hold shares..."

"Mr. Xiong is a person who has learned from the past." Fang Zhuo's mouth was raised, but there was no smile in his eyes.

Don't look at the special flight from Beijing to Shanghai to attend the banquet, don't look at the IDG executives from Xiangjiang who were invited to participate in the company's meeting. When it comes to the critical moment, how can the venture capital boss who has ever forced the palace be easily trusted?
Wang Zhidong of Sina was also happy at the beginning, but later he left Sina in embarrassment.

From the point of view of ordinary people, even if he leaves Sina, Wang Zhidong is still rich and free, but from the point of view of the company president, his career is undoubtedly a failure.

Fang Zhuo had every reason to consider the issue of controlling shares. Even if the A round did not meet the requirements of IDG America and Xiong Xiaoge, what about the subsequent B round? If IDG teamed up with other companies to stage a power-grabbing show...

Then Xiong Xiaoge, who suffered a loss once, had to have everything ready to stand in front of him?
At that time, the other party can still say "the best laugh is the last laugh".

Fang Zhuo could already imagine this scene.

"Mr. Pan, you didn't tell Mr. Xiong about my specific contact with Miller, did you?" Fang Zhuo recalled the previous instructions and wondered how they were carried out.

Pan Ben shook his head again and again: "I just don't know if Mr. Xiong has contacted Miller."

"Everyone is so busy, so they may not be able to contact each other. They claim to be independent. Besides, my contact with Miller was earlier than the agreed time." Fang Zhuo's thoughts surged, and the resources on IDG's side can be used as soon as they agree, but The issue of equity is really a big deal, and it seems that we still have to consider introducing a number of venture capital.

But other companies don't have the endorsement of Huaxia District like IDG. If you want to talk, you still have to show results.

In this way, it still falls on sales.

Fang Zhuo controlled his emotions and looked at this matter objectively.

……

China's NetEase office.

first day.

"Mr. Ding, Mr. Ding, our stock price has risen!"

the next day.

"Boss Ding, Boss Ding, our stock price has risen again!"

Day three.

"Uh, Mr. Ding, there is an American MIGA private equity fund that continues to drive up our stock price!"

Nth day.

"Well, Mr. Ding, MIGA Fund has announced that it has become our top ten shareholders...sent us a letter..."

Ding Lei went from joy to surprise to bewilderment to shock.

"What does this private equity company want to do? It doesn't want to hostilely acquire NetEase, right? Naive!"

(End of this chapter)