Hong Kong Island's New Rich Era

Chapter 45 Urban Complex and Huangpu Financing (Updated)
As a "prophet", Liu Zhicheng knew how crazy the real estate market would be in the next few years.

The next bull market was from 76 to 82, when housing prices increased 5-6 times. Therefore, housing prices will only become more and more outrageous in the next few years.

Due to the pull of stocks and land, the market value of real estate companies was infinitely magnified. By 1981, none of the top ten real estate companies in Hong Kong had a market value of less than HK$30 billion.

"If this is the case, we really need to quickly complete the industrial-commercial transition, otherwise the price difference will be even higher as time goes on."

Hao Qingwen's eyes suddenly lit up. If the market was really as the boss said, this would be a successful project.

"So, next, your focus will be to coordinate with the Hong Kong government to convert this land from industrial to commercial. Of course, the price can be as low as possible."

“The second is to design a development plan for a commercial complex.”

"Commercial complex?" This was the first time Hao Qingwen heard this concept and he was stunned.

"As you know, this land is connected to the submarine tunnel and is planned to have a subway, but its future commercial value has not yet been realized."

"We want to build an urban complex on this piece of land, Huangpu City, which integrates a large shopping mall, A-grade office buildings, hotels, and high-end residences. You should first make a plan for this grand plan according to the five-year development cycle."

As land prices in Hong Kong rise, rents will also increase, and many companies will move out of Central. Whampoa City will be the best place to take over, and it will be difficult for it not to succeed in the future.

In the previous life, there were Harbour City and Taikoo City, and in this life, there will be one more Whampoa City.

"Okay, then I will prepare the relevant information and plan to conduct negotiations with the Hong Kong government at the same time." Hao Qingwen said.

Liu Zhicheng currently has Wal-Mart's stock like a cash cow, and Citibank will strongly support his plan.

There was no other way. The Walton family was so powerful that every mall they opened became a huge hit, and the stock price also soared. This would naturally increase the credit support that Citibank gave to Liu Zhicheng.

However, Huangpu is a public listed company and Liu Zhicheng is only the controlling shareholder. It is impossible for him to bear all the consequences unless he has no other choice.

As long as we can hold on for another six months, the Hong Kong real estate market will recover and all these financial problems will be solved.

The land price in Hong Kong will become higher and higher, and the difference in price that needs to be paid will become even greater if the matter is delayed. Liu Zhicheng had to ask Hao Qingwen to speed up the negotiations with the Hong Kong government.

Liu Zhicheng also plans to build Huangpu Group into a comprehensive enterprise integrating commercial management, terminal operations, real estate development and commodity trading.

.........

At the end of July and as August was approaching, Huangpu Group was preparing to issue new shares for financing.

After approval by the board of directors and shareholders' meeting, the company will apply to the stock exchange for approval and prepare to raise funds from the public.

The new shares were issued to raise funds from the public, and all issued shares were underwritten by Citibank and HSBC Securities.

The market reaction to Huangpu Group's additional issuance was extremely optimistic, so much so that after Huangpu Group released its prospectus, it attracted tens of thousands of investors and investment institutions to subscribe for shares crazily.

The plan announced by Whampoa Group to raise HK$130 million was completed within one day.

August 8th is an auspicious day for Huangpu Group to resume trading.

Liu Zhicheng first picked up a prospectus of Huangpu Group Co., Ltd. The content was complicated and he said he couldn't understand it. But he could still understand some concise and clear data.

“Huangpu Group’s stock code: 10. Stock price before suspension: HK$8.02 per share. Total share capital: 2091 million shares. Market value: HK$1.67 million.”

This was the stock price when Huangpu Group announced its reorganization. When Liu Zhicheng first acquired Huangpu Group, the market value was only about 7 million Hong Kong dollars. The market value has increased by %.

"The additional share capital this time is 1672 million shares, the issue price per share is HK$7.85, and the funds raised are HK$1.31 million."

"The funds raised this time will be used to acquire part of Hebao Company's assets, restart the construction of Pier No. 4, and restructure the company's debts." After this share expansion financing, since Liu Zhicheng did not subscribe to the corresponding new shares, a certain amount of share dilution occurred.

Liu Zhicheng holds 67.9% of Huangpu Group's shares through Shanfeng Investment.

How much is this share worth? We will have to wait until the stock exchange opens today and Huangpu Group resumes trading to find out.

Liu Zhicheng then looked at the list of major shareholders of the Huangpu Group, half of which were Hong Kong investment institutions.

Individual investors include Yang Yuanlong from the textile industry, He Hongsen and He Zuozhi from Macau, Uncle Tong, Li Chaoren and others.

After the exchange opened in the morning, Huangpu Group announced that it would resume trading at HK$8.02 per share.

Within just two hours after the resumption of trading, the share price soared over the HK$10 mark and continued to rise.

The market viewed the restructuring of Huangpu Group as a positive development and responded positively.

There was a frenzy of buying that day, and when the stock exchange was closed, the stock price finally remained at 15.4 Hong Kong dollars.

The market value of Whampoa Group has risen to HK$5.79 million, and Liu Zhicheng's shares are worth more than HK$ million. This is also the first clear data of his assets to the outside world.

All investors who subscribed to Huangpu Group's shares saw their shares appreciate by double, bringing investors generous returns, and this share issuance came to a perfect end.

Through the Huangpu Group's share expansion and capital increase, not only Huangpu's own funding problem was solved, but also Hebao Company's funding problem was solved.

This time, Liu Zhicheng sold the trading department of Hebao Company to Huangpu Group for HK$2000 million.

Hebao Company was left with only the accessories factory and stone mine. After officially merging with Chigo, it was officially renamed: Chigo International.

After digesting the Huangpu Group, Liu Zhicheng prepared to further digest the business of Hebao Company merged with Chigo International.

The business of Yuan He Bao is also quite complicated. In addition to the trading business sold to Huangpu Group, it also has a Xiangjiang quarry and a motorcycle parts factory. However, the main business of Yuan He Bao is overseas.

The company's largest overseas investment was in Brazil in South America, where it held 70% of the shares of Yamaha Motor Brazil in .

Why did Hutchison choose Yamaha as an investment target? Mainly to obtain the supply order from Yamaha's motorcycle factory in Brazil.

Yuan Hebao Company has a motorcycle parts factory in Hong Kong, Indonesia in Southeast Asia, and Brazil in America. In order to obtain supply orders, Yuan Hebao Company held shares in Yamaha's Brazilian company.

In order to digest Yuanhebao's business, Liu Zhicheng decided to rush to Brazil to first inspect Yuanhebao's motorcycle parts factory and make his own plans for the next development of Chigo International.

After inspecting the business in Brazil, he will also visit Yamaha Motor Brazil to study, negotiate and inspect.

Liu Zhicheng knows the future market size of motorcycles. Not to mention the global market, even the Southeast Asian market is huge.

But at present Liu Zhicheng only controls the manufacturing of some parts, and has no technical reserves for the most important engines.

I can only sigh and look forward to this trip to Brazil.

　Dear book friends, because of your support, I just received a message from the station that Haomen Era has officially entered the second round of recommendations. The author would like to thank everyone for their support. To fulfill the promise made at that time, I will add one chapter today and another chapter tomorrow.

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(End of this chapter)