Winning the new financial era

Chapter 680

Ruixiang chose October 2019, 10 as the listing time. This day is also the sixth anniversary of Ruixiang's official registration and establishment, which is a very profound milestone.

On the day before the official listing, Zhang Yida and other management team communicated with CICC, Goldman Sachs, Morgan Stanley and other investment banks on the final pricing.

"Mr. Zhang, Ruixiang has already raised the fundraising amount to 300 billion US dollars, so there is no need to raise the issue price again?"

In a meeting room of the Peninsula Hotel in Hong Kong, Robert and other major investment bankers are trying to persuade Zhang Yida.

They are really worried that the global fundraising is 300 billion US dollars, plus the 15% of the green shoe allotment, the fundraising amount is as high as 345 billion US dollars!
This figure is nearly 100 billion US dollars higher than the world's largest IPO, Ali, which was listed on the New York Stock Exchange.

They are honored to participate in such a large IPO, and they really don't want the situation of "breaking" or "not rising".

The fundamentals of Ruixiang are indeed good. It is predicted that this year's revenue will reach 3000 billion, and it will still be profitable.

However, the issue price is too high, and shareholders feel that there is no profit or room for growth, which will dampen their confidence in stock speculation.

Before Zhang Yida could speak, Lan Lan preemptively said, "Why not raise the price? Our international placement has been oversubscribed by 8.5 times, with a total subscription of more than 1657.5 billion US dollars;
The public offering was oversubscribed by 50 times, and the frozen capital was 250 billion U.S. dollars, equivalent to about 1960 billion Hong Kong dollars.

The market is so fanatical in pursuing Ruixiang shares, I can't think of a reason to lower the issue price of Ruixiang. "

Both international allotment and public offering are actually ways of allotment of new shares. The relationship between the two is like wholesale and retail. One buys more, and the other buys less and is scattered.

International placement is aimed at investors with strong global strength, usually institutional investors and professional investors. The subscription funds are very large and can be purchased in large quantities.

The public allotment is more oriented to retail investors, and the amount of funds is relatively small, which is commonly known as "renewal".

Ruixiang plans to issue 10 billion new shares in the Hong Kong stock market, with an issue price of US$30 per share, equivalent to 235.29 Hong Kong dollars per share. This data does not include the green shoe plan.

Among them, the international allotment part is 9.75 million shares, and the public allotment part is only 0.25 million shares.

In view of the relatively high subscription sentiment of retail investors, it was decided to activate the callback mechanism and increase the public allotment part to 1 million shares, so that more retail investors can succeed in new acquisitions.

On this point, everyone has no objection.

What really made Robert and others feel a little bit troubled was the issue of the issue price. Sharp has raised the IPO issue price twice.

Robert didn't go to see Lan Lan, but looked at Zhang Yida, the real person in charge, and asked, "Mr. Zhang, what's your opinion?"

Zhang Yida said with a smile, "Lan Lan's opinion is mine. Don't be so timid. If it really breaks, we will admit it."

Robert looked at Zhang Yida who was full of ambition, sighed, and stopped persuading him, but just reminded: "If the deal breaks, the 45 billion US dollars raised in the green shoe allotment will only be lost."

Zhang Yida nodded. He had already rang the bell three times, and he was very clear about the basic rules of listing.

The "green shoe mechanism" is simply a "market protection mechanism", that is, while underwriting the IPO, one or more underwriters will act as market stabilizers to maintain the stability of the stock price after listing.

After a company goes public, stock prices will fluctuate due to various reasons, such as unexpected events, irrational retail selling, hedge fund arbitrage, and downward inertia due to continuous decline.

Once the stock price falls, market stabilizers need to take action.

Market stabilizers can boldly buy the company's stocks, because they can then return the stocks to the company at the IPO price for arbitrage, thereby artificially creating buying orders, driving up the stock price, and achieving the effect of "protecting the market".

If the stock price does not break, there is no need to protect the market, and market stabilizers do not need to return the shares. The company can normally exercise the "over-allotment" in full and raise additional funds.

The "market protection" behavior of market stabilizers is actually suspected of manipulating the market, but mainstream exchanges, including the Hong Kong Stock Exchange and the New York Stock Exchange, have adopted a tacit attitude.

"Okay, then let's see Zhenzhang tomorrow!"

After finishing speaking, Robert and his party simply left.

"Mr. Zhang, don't worry, I think Robert and his gang are too alarmist."

After Robert and the others left, Lan Lan comforted Zhang Yida.

Zhang Yida waved his hand and said with a smile, "I'm not worried, what am I worried about?"

After chatting for a while, Zhang Yida called Lin Zhenyang who was in the inland area and asked about the situation there.

This time A+H shares are listed, Ruixiang will issue 5 million shares on the Science and Technology Innovation Board, and the issue price is the same as the Hong Kong stock market, which is also 30 US dollars per share, equivalent to 213.97 RMB per share.

The Science and Technology Innovation Board has selected several securities companies such as CICC, Bank of China, China Merchants, CITIC, and its own Hanzhou Securities as issuers.

According to the relevant regulations of the Science and Technology Innovation Board, since the fundraising amount is higher than 50 billion yuan, underwriters are required to follow up with their own funds and subscribe for 2% of the issued shares, with a limit of 10 billion yuan.

Counting the green shoes, Ruixiang has raised as much as US$115 billion on the Science and Technology Innovation Board, which is naturally the top treatment. Brokers need to subscribe for new shares worth 10 billion yuan, and the lock-up period is not short, as long as 24 months.

However, this does not bother several major brokerages. They are still very confident in the long-term growth of Ruixiang’s stock price, and they divided up the 10 billion yuan of follow-up investment shares in proportion.

Lin Zhenyang will mainly report these preparations to Zhang Yida at this time. When the company is officially listed tomorrow, he will ring the bell in Shanghai, while Zhang Yida is in Hong Kong, and the two places will be listed at the same time.

"Why don't you guess what it will be like when it goes public tomorrow?"

Lin Zhenyang's voice came from the other end of the phone, and it could be heard that the other party was quite excited at the moment.

After looking forward to it for six years, it finally came today.

Zhang Yida didn't bother to guess, but asked about the visits of the bell-ringing guests.

"It's all here, I arranged to live in today near the magic city, and tomorrow I will witness the company's listing with us.

There are farmers who fight Duoduo, as well as short video bloggers, gamers..."

Zhang Yida nodded. The arrangement was okay. Apart from employees and shareholders, users must not forget that even if it was a gesture, they had to go through this process to show that Ruixiang paid attention to users.

Hong Kong has also invited a group of Musical.ly short video bloggers from Europe, America, Southeast Asia, Africa and other regions of the world.

For a global enterprise, people of all colors appear there, just like the United Nations holds a general meeting.

This kind of publicity is more direct than financial reports.

Black people still have to be invited, and Zhang Yida has already made arrangements. Tomorrow, a reporter will write a special book, and then take it to the United States for publicity.

African-Americans are a large group in Musical.ly's US region. Zhang Yida doesn't want to be accused of racial discrimination by competitors such as Zuckerberg.

(End of this chapter)