Perfection of Rebirth

Chapter 497 Preparations for Meituan Online IPO

Jiang Hui and others played in the plateau for half a month, and the senior executives of Guanghui Group asked when they would return to the company every now and then.

"Mr. Jiang, why do you look like you came back from Africa?" Zhou Benqiang came to Jiang Hui's office to report on the listing of Meituan.com, and saw that Jiang Hui's skin had turned black and said with a smile.

Speaking of which, under Bai Xue's coercion, Jiang Hui put on some sunscreen, but his whole body was still darkened a lot.

"Haha, men are not afraid of being dark at all, they look healthy," Jiang Hui said self-deprecatingly.

The two exchanged pleasantries for a while, and then began to get down to business.

"Mr. Jiang, we are at the last moment of preparing for the listing of Meituan.com. If everything goes well, we will be able to list on NASDAQ in October."

"Is your communication with Goldman Sachs' advisory team smooth?".

A company's final listing in the United States is often the result of the successful operation of an effective listing consultant team.In addition to the company itself, especially the company's management needs to invest a lot of time and energy, the company must form a listing consultant team including investment banks, legal advisors, and accountants.Among them, the investment bank will take the lead in leading the entire transaction and underwriting process.After careful consideration of the investment bank that helped meituan go public, Jiang Hui chose Goldman Sachs.

Founded in 1869, Goldman Sachs Group is one of the oldest and largest investment banks in the world. It is headquartered in New York and has branches in Tokyo, London and Hong Kong. It has 23 offices in 41 countries.

In the 1970s, Goldman Sachs seized a big business opportunity and emerged in the investment banking industry.At that time, "hostile takeovers" emerged in the capital market, and the emergence of hostile takeovers completely broke the traditional pattern of the investment industry and prompted a new industry order.Goldman Sachs took the lead in playing the banner of "anti-takeover consultants", helping companies that have suffered hostile takeovers to invite friendly bidders to participate in the bidding, raise the acquisition price or take antitrust lawsuits to attack hostile takeovers.Goldman Sachs suddenly became the angel of the hostile takeover.

Goldman Sachs has long regarded China as an important market, and since the early 90s of the [-]th century, China has been regarded as a key region for global business development.

Goldman Sachs established its Asia-Pacific headquarters in Hong Kong in 1984, and opened representative offices in the Imperial Capital and Shanghai Stock Exchange in 1994, officially entering the Chinese mainland market.Since then, Goldman Sachs has gradually established a strong international investment banking branch in China, providing comprehensive financial services to the Chinese government and large domestic enterprises that occupy leading positions in the industry.

Goldman Sachs has established a very strong business network in China's stock and debt capital markets, and has played an active role in China's entry into the international capital market and its participation in international capital market transactions.Over the past decade, Goldman Sachs has been a leader in helping Chinese companies sell shares abroad, with landmark deals including the IPOs of China Mobile, PetroChina and Bank of China.

Considering these factors, Jiang Hui chose Goldman Sachs as the investment bank for the listing of Meituan.com.

"It's relatively smooth. Our Meituan.com was the first to go public, followed by Xiaonei.com, and there were other companies after that. Goldman Sachs also hopes to maintain a close relationship with us, so they are relatively easy to talk to."

"When dealing with them, we must persist in what we should persist on the premise of being reasonable and well-founded."

"I understand that during due diligence, we insist on our own opinions on some projects, and we are not completely led by the nose by the consultant team."

Generally speaking, before listing, the company will conduct comprehensive and in-depth due diligence on the company's management, operation, finance and legal aspects with the assistance of the listing consultant team.Due diligence will lay the foundation for the company to draft registration statements, prospectuses, roadshow promotions, etc.

In order to better grasp and understand the business status of the issuing company, so as to draft an accurate and attractive prospectus, the lead underwriter, the legal adviser of the lead underwriter and the legal adviser of the issuing company will conduct a review of the issuing company’s property and related issues. Extensive review of contract agreements, including all loan agreements, important contracts and government permits, etc.

In this process, there will definitely be some differences between the consultant team and the management team of Meituan. Fortunately, everyone's goal is the same.

"How many processes do we have to go before going public?".

"It is now registered and is waiting for approval. According to the requirements of the US Securities Law, securities must be registered with the US Securities Regulatory Commission before a public offering, and a detailed prospectus must be provided to public investors. Registration and approval can be said to be the core stage of listing. up".

"No problem?"

"Our legal counsel team is very good, and it is expected to be approved in August."

The legal counsel and independent auditors selected by the company will jointly prepare the first draft of the registration statement, so the ability and experience of the legal counsel will be brought into full play at this stage.

The registration statement should consist of two parts: the first part contains the prospectus, and the second part contains supplementary information, signatures and attachments.

The prospectus has the following characteristics: First, it must meet the requirements of the US Securities Regulatory Commission and must truthfully disclose the information required by the relevant forms.Generally, the disclosure requirements for overseas companies are consistent with those for domestic companies in the United States, including the company's business, risk factors, financial status, management compensation and shareholding, major shareholders, related transactions, use of funds and financial audit reports for the past 5 years wait.In addition, the prospectus is also a promotional manual, and the prospectus must describe the "highlights" of the issuing company in order to attract investors.

"Is it a road show after the approval, and then wait for the listing?".

Roadshow refers to a series of reports that securities issuing companies make to potential investors, analysts or fund managers to stimulate investment interest, usually lasting one to two weeks.At that time, the company's management, under the arrangement of the investment bank, will tour various places to give speeches and demonstrate its business plan.

Management's performance on the roadshow is also critical to the success of a security offering.In the United States, important roadshow cities include New York, San Francisco, Boston, Chicago and Los Angeles.As an international financial center, London and Hong Kong are often included in the itinerary of the road show.

Once the roadshow is over, the final prospectus will be issued to investors, and the company's management will determine the final issue price and quantity with the assistance of investment banks.Investment banks often come up with a suggested price based on investor needs and market conditions.

"Yes".

"What is the initial valuation given by the underwriters?".

(End of this chapter)