Super Tycoon

Chapter 795 Why is it not listed in the Mainland?

After the news that the three subsidiaries of Zhiduoxing Group were preparing to go public got out, it quickly attracted the attention of many investors. Although it is only a subsidiary company, it has a lot of business and its revenue capability is not weak.

Many financial institutions took the initiative to contact, hoping to become the underwriter of the IPO of Zhiduoxing's subsidiary, and are willing to offer a preferential price.

Because they all know that there are many underwriters who want to be underwriters, and the competition is fierce. And the strength of Zhiduoxing Group is here, so there is no need to worry about the stocks not being sold.

And this matter was also known by some departments in Huaxia, and one of them immediately contacted Zhang Yang.

...

"Mr. Zhang, the reason why I invited you here this time is because I heard that the three subsidiaries of Zhiduoxing Group are going to go public, and they are all abroad?"

Zhang Yang smiled: "Yes, Chairman Zhou is very concerned about our company, thank you."

It's none of your business if I go abroad to go public, you still care about me?

"Director Zhang, why not go public in the mainland? Are Yangcheng or Mobo suitable? Especially the Yangcheng subsidiary, listed in Yangcheng, will definitely become a constituent stock. I can guarantee this."

Zhang Yang looked like a curious baby: "Are there any benefits to constituent stocks?"

"Yes, the government ax will help stabilize the stock prices of constituent stocks and increase your influence."

"Stabilizing the stock price, no one else needs to worry about it, Zhiduoxing Group has the ability. Our revenue is enough to support the company's stock price rise."

"As for increasing influence, I don't think it's necessary. Is there anyone who doesn't know about the brand Zhiduoxing? Looking around the world, we are also a top brand, and in certain industries, we are an absolute leader."

"But why do you have to choose to go public abroad? Is it not good for Huaxia enterprises to go public in Huaxia?" Chairman Zhou was a little confused. Many companies wanted to go public in China, but Zhiduoxing dismissed it.

If more companies like Zhiduoxing were listed in China, wouldn't China's financial market be prosperous long ago?

"President Zhou, in fact, I heard this sentence when Zhiduoxing Group was first listed. Then I will talk about it casually, and you can see how to solve it."

"At that time, we wanted to deploy the semiconductor business in Zhiduoxing Group, so we needed a lot of money. I did not accept mergers and acquisitions with shares. Zhiduoxing Group's equity cannot be left behind."

"I raised 5 billion US dollars in cash in New York. If it was in China, do you know how much it is? The most is RMB 3 billion, less than 400 million US dollars."

"I can sell the same stock for 5 billion, why can't I sell it for less than 400 million? Who will make up for my loss? Who will make up for the loss of so many shareholders and so many employees in the company?"

"Now the domestic financial market is stronger than before, but what's wrong with Yangcheng Zhiduoxing's listing in Xiangjiang? Isn't Xiangjiang owned by Huaxia? Do you know how big the gap in raising funds is?"

Only consider yourself, have you considered Zhiduoxing Group? Zhang Yang was disgusted by these thoughts.

"How much money are you going to let Yangcheng Zhiduoxing raise, and how much will the market value rise to?" Chairman Zhou still doesn't believe it. How high a subsidiary can be, as high as 10 billion RMB, so the shares used to raise funds will not be too many , billions of RMB will be the top of the sky, why can't the country digest it?

"Yangcheng Zhiduoxing,

It is mainly engaged in the mobile phone business under the Zhiduoxing Group. It currently ranks third in the country and fourth in the global market. By the end of this year, it is expected to become the second in the industry in both the Chinese market and the global market. "

"This year's revenue is not too much. The operating income attributable to Yangcheng Zhiduoxing is about 5 billion U.S. dollars, and the net profit can exceed 500 million U.S. dollars. What do you think is the appropriate market value for such a company?"

"Motorola has a market value of tens of billions of dollars, Samsung has a higher market value, and Soai, which ranks fifth, also has a market value of tens of billions of dollars."

"Nokia, which ranks first, has a market value of more than 100 billion pounds. I, Yangcheng Zhiduoxing, dare not compare it with Nokia, but it is not a problem to compare it with Motorola, Suoai, etc."

"Even if we don't have a factory and just find someone else to manufacture, the system and so on are also developed by Zhiduoxing Group, and the technology research and development also belongs to the group company, so the operating income can be placed there."

"Mobile phones now account for 20% of the revenue of Zhiduoxing Group. The current market value of Zhiduoxing Group is about 120 billion U.S. dollars. In other words, Yangcheng Zhiduoxing should be counted as 24 billion U.S. dollars, right? Considering the increase, it is estimated to be 250 million One billion U.S. dollars is no problem, it’s about 150 billion Hong Kong dollars.”

"We plan to issue 40% of the shares, so we need to raise 60 billion Hong Kong dollars. Can the domestic market absorb it?"

Chairman Zhou was stunned. How come Zhang Yang’s calculation is so different from his estimate, which is ten times.

"In order to ensure that Yangcheng Zhiduoxing can raise enough funds, I let Xiangjiang Zhiduoxing go to London for listing. Our different subsidiaries are listed in different financial markets in order to raise more funds."

"Furthermore, there are quite a few large mainland companies going public in Hong Kong, and many of them have a market capitalization of tens of billions of Hong Kong dollars, or even higher. Why haven't I heard that Chairman Zhou asked them to go public in the mainland?"

"Director Zhang, that's not what I meant." Chairman Zhou suddenly froze, "I just want to say that we are also very supportive of Zhiduoxing, and we just hope that Zhiduoxing can be listed in the mainland."

"By the way, Jingcheng Zhiduoxing and Bingcheng Zhiduoxing haven't been listed yet, have they considered going public in the mainland?"

"Bingcheng Zhiduoxing is mainly engaged in the production of game machines and learning machines. It is considered a manufacturing industry, and many businesses are also declining. It is meaningless whether it is listed or not."

"Jingcheng Zhiduoxing is mainly engaged in educational electronic products, covering the sales of Zhiduoxing products in the mainland market, which is not planned to be listed for the time being."

"Chairman Zhou thinks that a listed company must be good?"

Listed companies have a greater opportunity to grow, and their market value tends to become higher. Zhang Yang agrees with this very much. However, not all listed companies are necessarily good, and it is not uncommon for them to go bankrupt shortly after listing.

Even many companies are purely hyping up a gimmick to go public, because if they don't go public, their capital chain may be broken.

There are many top unlisted companies in the world, such as the Big Four accounting firms, who are in finance and do not want their financial situation to be made public. There are also some top consulting companies that are not listed.

Koch Industries Group is also a Fortune 500 company with annual sales of tens of billions of dollars, but it is not listed. Mars Candy Company, which includes Dove, Snickers and other brands, is also the world's top confectionary company and a Fortune 500 company, but it has never been listed.

Another advantage of such a company is that when the company is in financial difficulties, it is easy to raise a large amount of funds, and it will not lead to the loss of equity.

"President Zhou, I have nothing else to do and I'll leave first. If this kind of thing happens next time, there's no need to contact me again. I'm very busy at work."

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