This celebrity is too rich

Chapter 422 Backdoor Listing
"Guess?" Jiang Zeyu was a little puzzled.

"Ah."

Li Chuan nodded and didn't say much.

Although he is very clear about what will happen in the next few years, he has no way to explain this kind of thing to Jiang Zeyu, so he can only use "guessing" as an excuse to fool him.

These words, Jiang Zeyu sounded very uncomfortable.

He frowned slightly and said, "Guess, there must be a basis, you..."

"There is no basis."

Li Chuan immediately interrupted: "This is the experience I have summed up after living in China for more than 20 years. When you were a child, you went to school abroad. You may not know many things."

"I……"

Jiang Zeyu wanted to argue, but was interrupted by Li Chuan again.

"Okay, don't talk so much."

Li Chuan didn't want to get entangled in this topic, so he immediately made a decision: "This matter, just listen to me."

"This……"

Jiang Zeyu originally wanted to say something more, but after careful consideration for a moment, he finally chose to compromise.

"Okay, since you said that, let it be true."

Jiang Zeyu shook his head helplessly, then turned around and asked again: "Have you already decided to seek listing in the near future?"

"Yeah." Li Chuan nodded with a straight face.

"When are you going to (list)?"

"Preferably, before the end of the year."

"the end of this year?"

"Ah."

Jiang Zeyu frowned.

"what happened?"

Li Chuan asked: "Is there not enough time?"

"It's not enough, it's just..."

Jiang Zeyu organized his language a little bit, and said: "There are still about seven months before the end of the year, seven months, although a little nervous, but if everything goes well, there is still hope for completion.

However, this is only the most ideal situation.

The listing review conditions are very strict, and the process is also very cumbersome. Even a small problem may become a stumbling block, thereby delaying the time and pace of our listing.

Most companies will encounter various problems in the process of applying for listing. There are almost no companies that can go public smoothly without any obstacles. Even if there are, they are limited to state-owned enterprises or central enterprises. Private companies like ours are not a concept. "

Hearing this, Li Chuan couldn't help but frowned.

He paused and asked, "Then how long do you think it will take to complete the listing if we start preparing from now?"

"At least two years."

"Two years?!"

"Ah."

Jiang Zeyu explained: "We have been established for too short a time, and there are deficiencies in many places. It is not so easy to improve, and we still do live streaming.

Live streaming is an emerging industry in China.

Emerging industries have not undergone sufficient market testing, and in the eyes of many people, they are more prone to problems.

The China Securities Regulatory Commission focuses on stability and controls this aspect very strictly.

If we apply for listing, we will definitely face a lot of review pressure.

The audit pressure is high, and it will take a lot of time.

From this perspective, two years is already a very ideal result.

Under normal circumstances, we should fail to go public.

Because the ability of the China Securities Regulatory Commission is also limited, in many cases, they cannot accurately judge the impact that a company in an emerging industry will have on the society or the overall economic situation.

Once they are not sure, there is a high probability that our listing application will be rejected directly.

I would rather not do it than take risks... You should also understand this style of behavior. "

Jiang Zeyu's words were quite in-depth.

Li Chuan frowned even more after hearing this.

He lowered his head and thought for a while, then said decisively: "No! Our time is limited, we cannot accept failure, we must succeed in listing at one time! Two years, we can't wait, now is 2019, two years is 2021, at that time , Everything is delayed, I can only accept it for one year at most. "

"Then there is no other way."

"any solution?"

Li Chuan rolled his eyes and said, "Backdoor listing?"

"Yes."

Jiang Zeyu nodded and said, "This is basically the only way to complete the listing in a short period of time."

Li Chuan fell into deep thought.

"Backdoor listing" is a routine operation in the current financial market. Its method is very simple. It is to buy a listed company, then put the company you want to list in, and carry out business restructuring. After the restructuring, it becomes a listed company. .

The biggest advantage of doing this is that it can save a lot of time.

Backdoor listing also needs to be reviewed, but the review process is very simple and the regulations are relatively loose. Under normal circumstances, it only takes two to three months to get it done, and it will not exceed half a year at most.

Moreover, it does not require the signature of the sponsor representative, and the reorganization and listing cycle is also very short.

If the operation is good enough and no special circumstances are encountered, it can basically be completed in half a year.

Of course, backdoor listing also has certain disadvantages.

For example, the name is different.

Since it is a backdoor listing, the stock name must use the name of the shell.

The stock name is not the same as the business entity, which will bring some troubles to investors.

A spectator wanted to buy the shares of Sanmu Network, but opened the trading software, but could not find the stock information of Sanmu Network, because the stock name of Sanmu Network was not "Sanmu Network" at all, but a name that had nothing to do with Sanmu Network.

If this kind of thing is not done well, many investors may be lost.

Of course, it has a way around it.

Backdoor listed companies can carry out some publicity before the reorganization and listing. After the publicity, most investors will know about it.

In fact, all backdoor listing companies operate in this way in the early stage.

Later, they will seek to change the name.

The stock name can be changed, but it is more troublesome and usually takes several months to complete.

In addition, there are still some disadvantages in backdoor listing, such as the inability to withdraw funds in a timely manner, and there may be some risks in shell resources.

However, these shortcomings can be avoided, as long as the operation is done properly, it will basically have no effect.

On the whole, backdoor listing is indeed a particularly good choice.

Thinking of this, Li Chuan immediately made up his mind.

He looked up at Jiang Zeyu and asked, "Is there a suitable shell?"

"There should be, but we need to find it."

After Jiang Zeyu finished speaking, he asked again: "Where are you planning to go public?"

"This... I haven't thought about it carefully, what do you think? Where is better?"

"A shares or H shares."

Jiang Zeyu replied: "U.S. stocks, we definitely don't think about it.

In recent years, the relationship has deteriorated very quickly, and many companies that went public in the United States have already begun to transfer to China. Under such circumstances, we must not go against the current.

Therefore, US stocks should be excluded first.

Excluding U.S. stocks, there are only A shares and H shares, plus an S share.

S-shares have been on the rise recently, but they haven't been fully active yet. Moreover, the situation in Singapore is not clear enough, and investment risks are still relatively high.

For us, the best choice is A shares or H shares.

A-shares are the local market, the most familiar with our business, the investment tendency is very high, and the volume is large enough, the liquidity is also strong, and there are low efficiency and large-band opportunities.

However, A-shares have many restrictions, the degree of freedom is not high, and it is more troublesome to operate. This is its shortcoming.

H-shares are in Hong Kong, and they are relatively familiar with our business. The investment tendency may be a little lower, but it is not much worse.

Moreover, H-shares have an international market with a very high degree of freedom. For private companies, the conditions are better.

However, the size of H-shares is relatively small, and their liquidity is not strong. Especially now that companies listed in the United States have withdrawn on a large scale, its liquidity is very worrying. "

"Then what do you think we should choose A shares or H shares?"

"I think... it's better to choose H shares."

Jiang Zeyu hesitated for a moment, and said: "Although the liquidity of H shares is worrying, we are a private company after all, and we have relatively high requirements for freedom... Another point is that there are more shells in H shares, and the price is cheaper. Compared with A shares, backdoor listing in H shares is more cost-effective.”

Li Chuan thought for a while, and then asked, "Can you list A shares and H shares together?"

"Yes, but it's very troublesome... At present, there are many companies listed on A shares and H shares at the same time, but shell resources are very scarce. If we do this, there is almost no room for choice. Moreover, even if we find If you buy a shell resource, its price will definitely be very high, and from the perspective of cost performance, it is not cost-effective.”

"What should I do?"

Li Chuan was a little upset and said, "Can I only choose one?"

"My suggestion is to list on H-shares first. For A-shares, you can take your time and follow the normal procedures. In this way, there will be no delay."

"Well, that's fine!"

Li Chuan agreed very much: "Just do as you said. I will leave this matter to you. You used to be an investment banker and know a lot about this area. I won't talk about it. You go to find it first. A shell, talk to them, the sooner the better."

"it is good."

Jiang Zeyu nodded in response, then paused for a while, and then said: "What about those investment inquiries? Are we going public directly, or are we going to raise a round of funding before going public?"

"This...what do you think?" Li Chuan couldn't make up his mind for a while.

"I think it's better to raise a round of funding before going public."

"Oh why?"

"The main reason is that Douyin can't refuse... The purpose of Douyin's investment in us is to occupy a certain voice within the 'Sanmu Department'.

In this case, they will definitely ask for a director seat.

If they buy shares after listing, it is difficult for them to make such a request. Even if we make an exception and directly invite them to the board of directors, it is only symbolic and has no right to speak.

They will definitely not be satisfied with the board seats without the right to speak. Therefore, we should raise a round of funding before going public just to satisfy Douyin.

In addition to Douyin, we also need to take into account other interests.

Doing business in China requires a balance. Only in this way can we do business in the long run.

As far as we are concerned, we should absorb official forces, local forces, and some relatively powerful capital forces, and form a community of interests with them to ensure our subsequent development. "

"Ah."

Li Chuan thought it made sense, nodded immediately, and then asked, "How to get along? Do you have any ideas?"

"Let Douyin lead a group of capital to lead the investment, and at the same time let official forces and local forces participate, but don't mix them together, and the three parties invest independently."

"What capital does Douyin lead?"

"We don't have to worry about that."

Jiang Zeyu waved his hand and said: "We just need to tell Douyin the news, and they can bring whatever they want, as long as the conditions are suitable, we agree."

"How many shares should we give them?"

"It can't exceed 20%. Specifically, it depends on the situation. If there are more participating capital parties, we will give more; if the participating capital is relatively small, we will give less... The upper limit is 20%, the lower limit is 10%, and maintain Within this range, it’s basically about the same.”

"Well, what about the official forces and local forces?"

"It's all the same, 10% to 20%."

"Both together?"

"Yes, I think, based on our current situation, releasing 30% of the shares in one go is enough to express our sincerity, and any more is unnecessary."

"Ah."

Li Chuan nodded in agreement, and then continued: "How do you choose between the official power and the local power? We have some options for the local power. Fosun Group is a good choice, but the official power...send it here this time." In the investment inquiry letter, it seems that there is no official influence, right?"

"No."

"Then where do we find it?"

"Our company has it."

"what?"

Li Chuan was stunned for two seconds, then reacted, and said, "You mean... Qin Sheng?!"

"Yes." Jiang Zeyu nodded with a smile.

"How did I forget her!"

Li Chuan slapped his forehead and said, "What is the level of Qin Sheng's family?"

"I don't know too well, but I heard some rumors when I was in college. At that time, Qin Sheng's uncle should have retired now. However, Qin Sheng also has an uncle who is now working in the General Staff of the Army. The specific position Not sure, but as far as I know, Qin Sheng's mother's surname is Zhang..."

"I understand!"

Li Chuan raised his hand to interrupt, then took out his mobile phone from his pocket and said, "I'll call her right now."

The phone rang five times and was connected.

Qin Sheng: "Hello, Mr. Mori."

Li Chuan: "Huh? Where are you? Why are you so noisy?"

Qin Sheng: "I'm investigating on the side of ALS."

Li Chuan: "Investigate what?"

Qin Sheng: "Hope Elementary School, I told you before, have you forgotten?"

Li Chuan: "Oh~~, I remembered... when did you go there?"

Qin Sheng: "I just arrived yesterday, and today is the first day of inspection... By the way, the secretary of the alliance leader is right next to me, do you want to talk to him?"

Li Chuan: "No need, I'm looking for you, I have something else to do."

Qin Sheng: "What's the matter?"

Li Chuan: "That's right, the company plans to conduct a round of financing recently..."

Qin Sheng: "Financing?"

Li Chuan: "Yes."

Qin Sheng: "So suddenly?"

Li Chuan: "It's not sudden. We've been discussing it for a while, and we've already considered it maturely."

Qin Sheng: "Oh, do you need me to do anything?"

Li Chuan: "I don't need you to do anything, I just want you to ask, are your father and brother interested in participating?"

Qin Sheng: "Huh?"

Li Chuan: "That's right. The scale of our financing this time is a bit large, and it needs to be digested by many companies. I thought, your father and your brother are also in business. If they are interested, we can meet and talk about it. "

Qin Sheng fell silent.

Li Chuan waited for a while, but did not receive a reply, and said with some anxiety in his heart: "That...the company's current development is very good, and the future potential is also great. You should be clear about this, we..."

Qin Sheng: "Mr. Sen, I understand what you mean, but the family business is out of my control. I can't make the decision. I can only talk to my father and brother about this matter. As for whether they agree or not, I'm not sure." There is no way to guarantee it, and the most I can do is to help persuade you."

Li Chuan: "Okay, okay, that's fine! You ask first, and if you have any news, let me know in time."

Qin Sheng: "Okay, when I have time later, I'll call and ask."

Li Chuan: "Okay, I'll wait for your news."

"..."

After half a minute, the phone hung up.

"How is it?" Jiang Zeyu asked.

"Wait for news."

As Li Chuan said, he put away his phone.

(End of this chapter)