Perfection of Rebirth

Chapter 553 Everyone wants to go public
The listing of Meituan.com and Xiaonei.com has completely stimulated companies such as Tudou, YY Live, Qunar, and Guanghui Weibo. Each company has launched its own listing plan one after another.

For companies and companies, why should they go public?This is actually a simple and complex question.

Simply put, it is for financing, which is to raise more funds.When the owner of a company wants to raise capital for various purposes such as expansion, there are two ways.

One is to borrow money.Businesses can borrow from banks or issue bonds.Lenders and bond buyers collect interest from the company to get returns. What they own is the creditor's rights of the company. Once the company repays all the principal and interest, the debt relationship will end.Creditors cannot directly influence and intervene in the operation of the enterprise, nor bear the risks of the operation of the enterprise, that is to say, no matter whether the operation of the enterprise is good or bad, they must repay the debt.

Another way is to go public and issue shares.Businesses get the capital they need while selling ownership to shareholders large and small.Shareholders obtain income through dividends, dividends, etc., and also jointly bear the risks of the enterprise.

Unlike bonds, companies are not obliged to recycle stock from shareholders.Shareholders can only resell their shares to other people.

From the perspective of the owner of the company, the two financing methods have their own advantages and disadvantages: the issuance of bonds is paid, and the principal and interest need to be repaid, but the ownership of the company is still 100% in their own hands.Issuing stock can raise a lot of money for free, at the cost of sharing one's own ownership of the company.

From Jiang Hui’s point of view, Internet companies such as Xiaonei.com and Meituan.com choose to go public for financing, and physical industries such as Guanghui Mobile and Guanghui Automobile choose loans or issue bonds for financing, which are the best financing methods for each.

On the one hand, Internet companies lack real assets, and it is difficult to obtain bank loans. Of course, Internet companies such as Xiaonei.com, which are not short of money after listing, are an exception; , let alone whether it meets the requirements for listing, even if it is listed, it will not raise much money. Instead, the shares will be sold out, and the long-term loss will be very large.

Therefore, Jiang Hui is generally supportive of the group's Internet companies preparing to go public. Of course, Jiang Hui will definitely not agree to go public for a core company like Guanghui Payment.

……

"Mr. Jiang, this is the IPO plan of companies such as Tudou, Potato, Nico, YY Live and Qunar," Liao Yun said to Jiang Hui holding a bunch of documents.

"Which of these companies do you think should be listed first?" Liao Yun has been working with Jiang Hui for more than a year, and has been working in a dedicated manner. Jiang Hui is also quite satisfied with her and intends to train her. Where will she be placed in the future? The family subsidiary will be a high-level executive, and also be a vassal.

"I think Tudou and YY Live are the largest, so they should be listed first," Liao Yun said after thinking for a while.

"My opinion is different from yours. The process of listing does not necessarily mean that a large-scale enterprise has an advantage or is more suitable. Take Tudou and Potato as an example. I think the latter is more suitable for the first. listed," Jiang Hui said.

"why?".

"It's very simple, because we are all planning to go public on Nasdaq. Whose territory is Nasdaq? American? Although Tudou has more users than potato, and the advertising revenue is higher. But if you are an American People, if you were given a choice between two companies, which one would you invest in? They are China and the No. [-] video company in the U.S. market.”

"Maybe both Americans and Chinese will choose to invest in potatoes."

"By the way, it must be so. We have to admit a fact that we don't want to admit, that is, the international financial market is still in the hands of Americans. If a company of the same type performs well in the American market, it is easier to obtain a better valuation. of".

This topic is a bit clichéd, but just look at the difference in market value between Google and Du Niang when they went public.Although Google is indeed stronger than Du Niang, the gap was limited in 2005 and 2006, but the difference in market value was huge.

"That means Guanghui Group will give priority to listing foreign and international subsidiaries first?".

"Yes, after a few years the international market's acceptance of China's concept stocks has reached a new height, and then arrange for companies that mainly operate in the domestic market to go public."

"If these unlisted companies lack development funds, will it affect them to seize the market?".

“That’s a good question. Companies like Tudou and Guanghui Weibo are temporarily not listed, but it doesn’t mean they won’t raise funds. I can cash out some of the shares of listed companies when the stock price is more favorable, and use these funds to feed back unlisted companies. Other shareholders either follow suit or get diluted, whichever it is, it’s not a bad thing for me.”

"It's very good, but I don't know if the employees of companies that are not listed will have resentment in their hearts."

"There are a lot of companies that are not listed. If employees feel resentment against the company because of this, I think it is better for such employees to leave early. Conversely, some employees may not be listed because the company has not yet, in order to get stock options. Instead, I worked harder," Jiang Hui said with a smile.

For companies that go public in the morning, the average employee holds relatively few shares, and the company's incentives are more in the form of cash. The typical representative is the Penguin company of later generations.For enterprises listed at night, relatively speaking, employees will hold more stocks and less cash rewards. The typical representative is Alibaba of later generations.

Which way is more effective in motivating employees?This is really hard to answer.All in all, the later generations of Penguin and Alibaba employees seem to be living relatively well, especially the employees who joined the company earlier.

As far as Guanghui Group is concerned, in the early days, Jiang Hui generally adopted share-based incentives for partners, but later Jiang Hui considered that the valuation of each company increased too fast, and the difference in the value of employees with equity and without equity was very large. At the beginning, everyone may not be able to realize the value of these stocks, so gradually Guanghui Group adopted cash incentives as the main method and option incentives as a supplement to motivate employees.

Judging from the current situation, the employees of Guanghui Group are quite satisfied with their treatment and status. Of course, Liu Chujing, the head of the personnel department, has also put in a lot of effort, and finally did not waste what Jiang Hui gave at that time. equity.

Mencius once said: "If you treat me like a countryman, I will repay you as a countryman! If you treat me like a passerby, I will repay you like a passerby! If you treat me like nothing, I will repay you with a vengeance!"

Although 2000 years have passed, some classic quotations from our ancestors will never fade!
(End of this chapter)