Rebirth starts from e-commerce

Chapter 589 Stock Pricing
The first step to go public is to carry out the shareholding system reform and transform it into a joint-stock limited company.

The world's first joint-stock company was the Dutch East India Company.

In the age of great voyages, European countries set up sea adventures, explored world geography, and developed overseas business opportunities.

When they arrived in the East Indian Ocean trade zone, they found that the prices of commodities there were low, especially pepper, spices and other goods, as long as they were transported back to Europe, they could immediately earn huge profits.

Westerners are so obsessed with spices that it was once a luxury with a price comparable to gold.

In 1560, a group of Dutch businessmen sent Hautemann to Portugal to spy on business conditions, and then the group of businessmen set up a company to use this information to develop in the East Indies.

Because this business was too profitable, the Netherlands successively established 14 companies focusing on East India trade.

No matter what kind of business, when there are more competitors, and each other lowers prices, profits will inevitably decline.

Due to fierce market competition, East India trade has gradually become a high-risk and unprofitable business.

Later, the leaders of these 14 companies gathered for a meeting and decided to merge and become a joint company, which is the world's first joint-stock company - the Dutch East India Company.

The Dutch East India Company is a company that can organize mercenaries, issue currency, and is allowed to colonize and rule other countries and regions.

At its peak, it had an army of more than 150 merchant ships, 40 warships, 5 employees, and 1 mercenaries.

They used their own armed forces to buy and sell by force, plunder and colonize.

For Asian countries, they can be said to be a pirate who can do business.

For the Dutch, it is a gold mine that can make money day by day.The annual return on equity is as high as 40%.

At that time, the Dutch, as long as they held a few shares of Indian companies, they could rely on dividends to live comfortably.

Most of the early capital groups carried out primitive capital accumulation by means of plunder, colonization, and slave trade.

Their wealth is built on the squeeze of black slaves, on the piles of human heads, full of the stench of blood.

On the contrary, after completing the accumulation of capital, it has begun to become a saint.

But our company has not gone through such a stage, and can only rely on the blood and sweat of the workers to accumulate wealth bit by bit, and gradually become today's world factory.

……

The shareholding restructuring of Pinru Group is not too difficult.

Because a large part of the company's early financing was cheated from the father-in-law, and they were all from our own people.

Now Luo Xiu only needs to do one thing, and that is to remove sensitive business.

For example, the payment business, which is related to the national financial security, must be separated and independent.

Keep it for listing in the country alone in the future, or never go on the market again.

At the same time, the news that Pinru Group formally applied for listing on the New York Stock Exchange came out, instantly occupying the headlines of major media.

The difference between Luo Xiu and other low-key and pragmatic entrepreneurs in China is that he often shows his face in front of the media.

Not only is it frequently searched, but he also controls many social platforms.

Coupled with his legendary entrepreneurial journey, it can be said that every move can arouse heated discussions among netizens.

"Didn't Luo Xiu say before that he would never go public? Why did he suddenly apply for listing again?"

"I still can't help but want to go public to make money!"

"I don't know how much the market value can go to."

"Super Baidu is inevitable, it depends on how far you are from Shuangma."

"My dad told me last night that our family is just doing a small business, and we dare not compare with the two horses."

"Upstairs, when did my husband have an illegitimate child like you?"

"Luoxiu is your husband? Who is this lying in my arms?"

……

Regarding the sudden announcement of Pinru Group going public, different people have different opinions.

Some people are concerned about whether Luo Xiu can become the new richest man in China, while others are calculating how many millionaires Pinru Group will have.

Those investors are guessing at how the stock will eventually be priced.

The issue price of the stock determines the market value of the company and also determines how much money the company can raise in this IPO.

For example, Ali, which created the largest IPO on the New York Stock Exchange, determined the issue price at US$68 per share, issued a total of about 3.2 million shares, and raised more than US$250 billion, setting the highest IPO in the global stock market at that time.

At the beginning of Ali's listing, Lao Ma's personal assets reached more than 200 billion U.S. dollars, making him the richest man in China in one fell swoop.The company has 11000 employees who hold shares, and each person can cash out an average of US$422 million, or about RMB 2590 million.

At that time, Luo Xiu was standing beside him, watching him attain the Tao by himself and ascend to heaven.

This kind of moment can be said to be the ultimate ideal of every entrepreneur.

Now that Pinru is planning an IPO, it also faces pricing issues.

You have 10 billion shares, priced at $10 per share, then the market capitalization of the company is $100 billion.Priced at $100 per share, the company's market capitalization is $1000 billion.

Theoretically, if you underprice, you'll raise less money and lose a lot.

If it is too high, investors and shareholders will feel that the value of your company is not that high and will not buy your stock, then the listing will fail.

Of course, pricing does not mean that you can set as much as you want.

Different securities markets use different pricing methods.

Before Luo Xiu was reborn, as a company executive, he also experienced the preparatory work before the company went public.

During that time, investment companies came to do due diligence every week.

On the one hand, they will send financial personnel to check every income and expenditure of yours, calculate your actual revenue and profits in the past two or three years, and set prices based on these financial data.

If the company can achieve 50% or even 100% revenue and profit growth for several consecutive years, it shows that the company has great potential for future development, and a higher PE can be given.

In addition, they will also talk to the company's management and technical backbone.

Whether a company is competitive and has huge potential is inseparable from the company's management and technical backbone.

If they find that the employees in your company are mediocre, generally too old, and unable to compete in greater market competition during the due diligence process, they will also not give a high PE.

Listing on the US stock market requires roadshows to find investors.

In order to convince investors of the value of your company, listed companies need to hold a "road show" to fully communicate with investors.

Promote the development prospects of listing to investors, deepen investors' understanding of companies to be listed, and understand investors' investment intentions, discover demand and value positioning, and ensure the successful issuance of securities.

This so-called road show is actually telling a story.

Now Luo Xiu is sitting in the study, his hands are beating rapidly on the keyboard, making up a story that sounds very funny for the company.

It's like Shaolin Kungfu plus football.

(End of this chapter)