Rebirth: The Era of Hong Kong Tycoon

Chapter 165 [Preparing for Listing]

Modern newspaper.

Lin Rongheng convened a group of high-level executives and held a meeting, mainly to discuss the matter of going public.

Currently, Modern News has four newspapers and magazines——"Modern Daily", "Modern Evening News", "Economic Daily" and "Modern Weekly". Among them, "Modern Daily" has a global sales volume of 33 copies, and "Modern Evening News" has a sales volume of 8 copies in Hong Kong and Macau. The global sales volume of "Economic Daily" is 9 copies, and the weekly sales volume of "Modern Weekly" is 7 copies.

In this way, an average of 51 people read the publications of the modern newspaper every day, which is half of Lin Rongheng's goal.

The monthly profit of Modern Newspaper is about 120 million Hong Kong dollars, and the annual profit is 1500 million Hong Kong dollars.

In terms of scale and profitability, Modern Newspaper, which has been established for more than two years, has surpassed Sing Tao Newspaper.

Lin Rongheng looked at the nine senior executives of Modern Newspaper, all of them had a look of excitement on their faces, because everyone held a lot of shares in Modern Newspaper.

The current stock situation of Modern Newspaper is: Lin Rongheng owns 700 million shares, Huang Renqi owns 170 million shares, and employees hold 130 million shares; The average price is 20 Hong Kong dollars per share, which is so cheap that Lin Rongheng can make a lot of money.

Lin Rongheng first said: "From now on, Modern Newspaper will launch the listing plan and strive to go public in August!"

Everyone immediately beamed with joy, and finally heard the boss make a decision!
Luo Zhaoyou said, "Which financial company will you choose?"

Lin Rongheng thought for a while, and then said, "Let's just talk to the chief executives of Huodoli Finance Company and Sun Hung Kai Finance Company!"

To list a company, you first have to entrust an underwriting company, and then the underwriting company drafts a listing application, prepares the company's articles of association, prospectus, company performance, various accounts and other attachments.

Evergrande Real Estate went public in 1970, and it took only one month of preparatory period before listing; with the booming stock market, the number of listed companies is increasing day by day, and various tasks for listing have also become more, so generally two months Time is no problem.

Although the preparation time has become longer, the requirements for listing have not increased the difficulty. Even restaurants can be listed, as long as the company's assets reach 2000 million Hong Kong dollars.

At the same time, Lin Rongheng also announced his plan to prepare for listing at the high-level meeting of Universal Pictures.

The shares of Universal Pictures are as follows: Lin Rongheng personally holds 90% of the shares, and the original team of Golden Harvest Original holds 10% of the shares.

In the meeting room, Lin Rongheng said: "Over the past year and a half, Universal Cinemas has invested a total of more than 1000 million Hong Kong dollars in the establishment of new cinemas, but these cinemas are all branched in Hong Kong, and overseas cinemas have not yet been involved. , but our movies have a high box office overseas, so we urgently need to own theaters. So, General Manager Zou, go talk to Cathay Pacific, we want to acquire their Southeast Asian theater business, see if there is any hope?"

At this time, only one Bruce Lee film was screened overseas, and it has already achieved huge box office results, and there are still five films to follow; It can recover a large part of the investment.

The senior executives were a little surprised, and Zou Wenhuai said directly: "Cathay Pacific is a large theater chain in Southeast Asia. If it wants to buy it, I'm afraid it will cost about 5000 million Hong Kong dollars! What does the boss mean by using the stock market to complete this transaction?"

Lin Rongheng nodded and said confidently: "If Universal Pictures goes public in August and September, it will be no problem to raise 25 million Hong Kong dollars with 5000% of the public shares! If there is still a funding gap, we can use loans and issue new shares to complete the follow-up This deal."

Zou Wenhuai, He Guanchang and other members of the original Golden Harvest team discovered at this time that after Golden Harvest was acquired by Huanyu, it was more like entering a capital society; of course, these people are still only in charge of the film business, but as the boss, Lin Rongheng is really good at capital The game is over.

Originally, everyone thought that after being merged into Universal Films, they could enjoy dividends every year. Now it seems that the company has money to pay dividends. Universal Studios needs money to build, and Universal Cinemas also needs money to build; In addition to these two projects, Universal Pictures still owes a huge debt of 2000 million Hong Kong dollars.

Of course, if these people want to get cash, they can also do it through cashing out stocks; but after cashing out stocks, it must be a one-time report, which cannot be compared with annual dividends.However, if the stock is cashed out after listing, based on the diluted 7.5% shares of the Golden Harvest team, the original team of Golden Harvest can cash out at least 2000 million Hong Kong dollars (the stock price rose by 0.5 times on the day), which is comparable to the cost of 1970 Hong Kong dollars when Golden Harvest was founded in 30 , a full 70 times increase.

Anyway, Zou Wenhuai and others are still satisfied with the current situation and do not regret their original choice!

Zou Wenhuai nodded and said, "En! Then I'll go talk to Zhu Guoliang!"

Lin Rongheng said: "If we don't want to or the price is too high, we don't want to consider buying. We can choose to go to Southeast Asia to build it ourselves; we don't have to buy all of them, and we can buy more than 60% of the shares!"

Even if he acquires Cathay Pacific's theaters in Southeast Asia, Lin Rongheng will continue to invest in theaters in Southeast Asia; of course, it is equivalent to investing in real estate.

Lin Rongheng's Modern Newspaper and Universal Pictures are preparing to go public almost at the same time, and the financial companies they have chosen are also the same-Huatoli Finance Company and Sun Hung Kai Finance Company.

But when the two companies were just preparing to go public, a false alarm happened:

Hang Seng Bank was listed on June 6, and it was issued to the public at a price of HK$12 per share, with a premium of HK$100 on that day. Originally, this was good news that would stimulate the stock market, and it was true. The Hang Seng Index rose by 35 on that day point.

But a week later, Hong Kong's financial market began to be chaotic, banks stopped listing exchange rates, and the Kowloon Stock Exchange also needed to suspend operations.

The reason for this is that there is a big factor. The British government announced that the British pound will be free floating, so what will happen to the Hong Kong dollar linked to the British pound has become a suspense, so the bank stopped pegging the exchange rate.Fortunately, this situation was stabilized in early July. First, the Hong Kong government announced that the Hong Kong dollar was pegged to the U.S. dollar, and the exchange rate was 7 Hong Kong dollars per U.S. dollar.

The Xiangjiang stock market quickly digested these negative news. Shareholders believed that these were only problems of individual small-scale exchanges and companies. Since mid-July, the stock market has returned to an upward trajectory.

During this period, some high-level executives asked Lin Rongheng to suspend consideration of the listing plan. Lin Rongheng said confidently: "The stock market will continue to rise soon, so there is no need to worry!"

The result was really like this, which made the senior management admire Lin Rongheng's foresight even more.

Monday, May 8.

Modern Newspaper was listed on the stock market, with a total share capital of 5000 million shares, and 4 million shares were sold to the public at a price of HK$1250 per share.On the same day, Modern Newspaper closed at 6.4 Hong Kong dollars per share, a premium of 6% on the day.

The total market value of Modern Newspaper is 3.2 million Hong Kong dollars, and Lin Rongheng holds 52.5% of the shares (2625 million shares), worth 1.68 million Hong Kong dollars.

Monday, May 8.

Universal Pictures went public with a total share capital of 4000 million shares, and sold 5 million shares to the public at a price of HK$1000 per share.On the same day, Universal Pictures closed at 7.5 Hong Kong dollars per share, a 5% premium on the day.

The total market value of Universal Pictures is 3 million Hong Kong dollars, and Lin Rongheng holds 2700 million shares, worth 2.02 million Hong Kong dollars.

(End of this chapter)