Reborn in Hong Kong as a Tycoon

Chapter 551 IPO Fundraising, Preoccupied (Two in One)

"Thank you all for taking the time to participate in the fundraising activity of Galaxy Games Company today. My name is Lin Baicheng. You can call me Alan. It's a pleasure meeting you all."

"Galaxy Games, which I founded in 1977, and started to develop the first arcade game in July, it is "Xiangjiang Cube"!"

"Maybe someone knows "Xiangjiang Cube", maybe someone doesn't pay attention to the game, so they don't know it. If you are someone who doesn't know it, then I want to tell you that its sales have reached 10,000+ units, and it has spread across many countries in the world. The country, whether it is North and South America, Europe or Asia, has its presence.”

"In 1977, the company developed two arcade games, namely "Xiangjiang Square" and "Pac-Man", and these two games were very popular and popular in the market. A net profit of $1977 million."

"Really speaking, in 1977, the company only took half a year to generate a profit of 1.5 million U.S. dollars."

"In 1978, "Xiangjiang Square" and "Pac-Man" continued to sell well, and at the same time, the two games "Tank War" and "Donkey Kong" developed by the company in that year also achieved good results. The profit was $3 million, a 1977% increase from 100."

"It is already very rare for a company to maintain a high net profit, let alone a substantial increase. I think everyone should be able to imagine it."

"This year, although the sales volume of the four games that the company sold in the past two years has decreased, the sales of an arcade game have been golden for three years. Therefore, the two games "Xiangjiang Cube" and "Pac-Man" are expected to continue to grow this year. It can have about half of last year's sales, and "Tank War" and "Donkey Kong" can even have about 70% to 80% of last year's sales, bringing a lot of profits to the company."

"The company also develops new games this year. A total of five games have been developed this year. Although three games are not classics, they can also bring a lot of profits to the company. Among them, the arcade game "1942" developed by me is even better. It is a classic game that is very popular in the market and will bring high profits to the company in the next two to three years."

"The last game is not yet on the market. This game is also developed by me and will be sold before Christmas. I am confident that this game will become a classic and bring at least one piece to the company. $[-] million in revenue."

"The company's third quarterly report for this year has come out. As of the end of September, the company's profit was about 3.1 million US dollars, which has exceeded last year's 3 million US dollars profit. Christmas is the peak season for the company's arcade sales, and the company expects the fourth With a quarterly profit of US$1.3 million, it is expected that the company’s profit this year will reach US$4.4 million, an increase of nearly 50% year-on-year.”

“在1977年，公司的1.5亿美元利润只用了半年时间，如果按照一整年时间来计算的话，公司当年的利润也能达到3亿美元。1978年, 公司利润高达3亿美元；今年的1979, 公司利润预计不低于4亿美元。”

"That is to say, after the past three years, the company's annual average profit is not less than 3 million U.S. dollars, while the company's listing inquiry price is only 15.75 U.S. dollars per share, and the total market value is only 31.5 billion U.S. dollars, a price-earnings ratio of ten times."

"A company with stable and high profits every year must have a price-to-earnings ratio of more than ten times. You can just look for it in the US stock market. There is no such high-profit stock with a low price-earnings ratio."

"So, buying the stock of Xinghe Game Company now is tantamount to buying the bottom of a good company, and holding it for a long time will definitely bring you rich returns."

"."

Lin Baicheng said a lot, anyway, he picked up the good ones, and he would never tell investors about the negative news that the game industry may be boycotted by parents.

As long as parents in the two largest markets, the United States and Japan, do not boycott the game industry, causing damage to the game industry, and the company’s profits are greatly reduced, then the future of Galaxy Games is worth looking forward to.But if he is boycotted and severely injured, then it has nothing to do with Lin Baicheng. This is a 'black swan' event that no one can predict.

"Mr. Allen, when your company calculates this year's profit, has it calculated the profit of the game that has not yet been released according to the market explosion? If this is the case, once the response of the game is mediocre, will it be the fourth for the company? Quarterly and next year's profits have a significant impact?"

Next is the time for investors to ask questions. It is impossible for investors to just listen to Lin Baicheng, the chairman of the company, and list the data. There will definitely be people who will criticize and be responsible for the investors' own funds. Even the fund must be responsible for the invested money.

Lin Baicheng solemnly replied: "Among the many games that the company has already launched and sold, the four classic games that are popular in the market, namely "Xiangjiang Square", "Pac-Man", "Tank War" and "1942", are all developed by myself. The game that was not released for sale was also led by me, so I and the company management have considerable confidence in the sales performance of this game, and we don't think it will fail."

"Mr. Allen, I read the report. The profit of Xinghe Game Company is about 60% of the revenue. Can the company's profit ratio be kept so high? Once the product price is reduced or the cost of research and development is increased, will the company's profit be good? Will it be lowered?"

"If the situation that this gentleman said occurs, then the company's profit will definitely decrease, but this situation has not yet occurred, and the current assumption is meaningless at all. If it is to be assumed, the company will develop at least five games next year, If the company develops classic games next year and they are popular in the market, then the company’s profit next year will be at least US$5 million, and the company’s stock price will definitely soar.”

"Galaxy Games currently has a very high market share in arcade games. Is the company ready to face the challenges of latecomers? Since this industry is so profitable, I think there will definitely be many companies entering this industry, and the number of competitors will increase. It will definitely affect the company's profits, don't you think, Mr. Allen?"

"The company has no challengers now, and there will be no challengers in the future. The company will only do itself well, constantly surpass the past, create better results than last year, and bring profits higher than last year to the company."

"Mr. Allen."

"..."

Lin Baicheng seriously answered every investor's question, even if some investors asked critical questions, he could answer them with ease.

The fundraising event lasted more than an hour.

After the event, Galaxy Games held a party at this hotel and invited these investors to attend.

Except for some people who have already decided to subscribe for the shares of Xinghe Game Company, most investors have to think about it again, and Xinghe Game Company will give everyone time.

Although this is the last fundraising event in New York, the company still has ten days to go public, and investors have up to a week to consider and raise funds, which is still plenty of time.

At the party, Lin Baicheng found Wade Thomas and Deren Lawrence sent by Goldman Sachs and Citigroup to assist Galaxy Games in listing.

"The company's shares should all be subscribed, right?"

The reason why Lin Baicheng asked this question is because after the last fundraising event in Chicago, the 4000 million shares issued by Galaxy Games Company have been subscribed for more than 3470 million shares, leaving only a little over 13% of the shares unused. was subscribed.

And here is New York, the most economically developed city in the United States. The number of wealthy people here is definitely one of the cities with the largest number of people, and the funds for subscribing for stocks will definitely be more. Presumably, it should be more than the two cities of Los Angeles and Chicago. The subscriptions in these two cities accounted for more than 15%.

"almost."

Wade Thomas said: "Although there are still nearly a million shares that have not been subscribed, the number of people who have subscribed currently only accounts for a small part of the total number of people who came to participate in the event. There are still more investors who have not made a decision. Wait until tomorrow. Shares will be subscribed."

Deren Lawrence said: "If there is no accident, the shares of Galaxy Games will definitely be oversubscribed."

Lin Baicheng asked aloud: "Then if the stock is oversubscribed, how do you think it is better to deal with it?"

Wade Thomas said: "If there are not many oversubscriptions, it will remain the same. It will be listed according to the original plan. It can only be said that those investors who subscribed too late are out of luck."

Deren Lawrence took over the words: "Once the amount of oversubscribed funds is large enough to reach about 5% of the total funds raised by the issuance, the issue price can be increased and the company's listing time can be delayed. After all, the higher the issue price is for the The better the company is."

"In this case, let's wait until the results of the fundraising come out."

Lin Baicheng nodded slightly. If there are not many oversubscribed funds, there is no need to waste time.

Wade Thomas reminded: "Alan, you'd better stay here in the United States these days, and you can deal with the situation immediately. Especially when the company goes public, as the chairman of the company, you must go to the scene to knock Zhong, if you don’t go, there will definitely be bad speculation from the outside world, which will definitely have a great impact on the company’s stock price.”

"Thomas, don't worry, unless something extremely serious happens, I will stay in the United States during this time."

Lin Baicheng nodded with a smile. He came to the United States this time specifically for the listing of Xinghe Game Company, so unless there is a major event that he has to deal with personally, he cannot leave halfway.

"Hearing you say that, then I'm relieved."

Hearing what Lin Baicheng said, of course Wade Thomas would not say anything more.

Deren Lawrence said: "Alan, let's go talk to the investors."

Lin Baicheng nodded when he heard the words, waved to the waiter not far away, took a glass of wine, and accompanied Wade Thomas and Deren Lawrence to greet and chat with those investors.

These investors who are likely to subscribe for stocks do not mean that all of them are very rich, but each of them has at least a few million dollars in net worth, and there are tens of millions of dollars more, and some are even responsible for small and medium-sized institutions. If there are more people, the total subscription funds will be very considerable.

Lin Baicheng's mentality is very stable. Anyway, the shares issued now are almost fully subscribed. Of course it would be best to have a large amount of funds to oversubscribe, but if not, he doesn't care. He doesn't pursue perfection.

That night, Lin Baicheng went to Haruko Mori's residence, and spent the night at Haruko Mori's place tonight.

"Chengjun, how is the stock subscription going?"

Of course, Haruko Mori knew what Lin Baicheng was going to do in New York, she just didn't go to the hotel where the fundraising event was held.

"Essentially accomplished the goal."

Lin Baicheng said briefly: "Now it depends on whether there will be oversubscription, and if there is oversubscription, how much money can be exceeded."

Haruko Mori asked, "If it is oversubscribed, will the issue price of the stock be raised?"

Lin Baicheng nodded: "If there are 4000 to [-] million US dollars in oversubscribed funds, the issue price should be raised."

Haruko Mori said: "The higher the issue price, the higher the company's market value, and the higher the value of your shares, Makoto."

"That's right."

Lin Baicheng shook his head: "However, I don't have the idea of ​​selling shares in a short time, so the short-term fluctuations in stock prices have nothing to do with me. I might as well work hard to run the company when I have that time."

Haruko Mori reminded: "Mr. Cheng, you still personally hold 59% of the shares of Galaxy Games Company. After the half-year sales period has passed, it is best to sell some shares, at least on the surface. If Galaxy Games Company If it is very profitable, holding too many shares will only attract people's envy, which is prone to accidents."

"I understand what you mean, and I have similar plans."

Lin Baicheng nodded to express his understanding, and even said: "Not only Xinghe Game Company, but also Hutchison Whampoa, which has the largest market value in Xiangjiang, I will also reduce my holdings at that time. On the surface, I will only keep a maximum of 20 % of the shares. If one day the company’s market value can break through 10 billion Hong Kong dollars, I will even reduce my shareholding, leaving only [-]% on the surface.”

"Your Majesty, it's good that you have such a plan."

Haruko Mori is really worried that Lin Baicheng doesn't understand the truth of this. As the most ordinary people, even if people don't hate the rich, they don't have a good impression of the rich. Therefore, there is too much wealth on the surface, but it will attract hatred Yes, it will attract greedy eyes and cause trouble for yourself.

"Qingzi, if you have any suggestions, just tell me, don't worry about anything, there may be something I didn't think of, you have to check for me and make up for the omissions."

Lin Baicheng said very seriously, he knew very well that although he was a reborn person, he was just an ordinary person before, and there might be important things that he didn't consider, so he needed to listen to other people's good advice and not be blindly arrogant.

"Don't worry, Mr. Cheng, I will always remember."

Haruko Mori nodded to express her understanding. Now she can say that she and Lin Baicheng are both prosperous. Of course, she hopes that Lin Baicheng will get better and better.

(End of this chapter)