Chapter 52 of the text: striving

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Are the two opinions that he has carefully considered really so undesirable? Page was a little angry.

"I reiterate that I support your approach, because auction-style pricing is more in the interests of our major shareholders,"

Feng Yiping simply didn't copy Page's whitewashed statements, and there were no outsiders, so there was no need to pretend.

"It's just that I think it's necessary for us to recognize the huge difficulties that we will face in this way of pricing."

"In other words, can we evaluate the advantages and disadvantages of it and listing in an ordinary way, if we can first recognize the difficulties of auction-style pricing from the ideological point of view, and do more preparatory work, then the actual operation, it will be more calm, and the effect will be better, what do you say?"

Thinking very beautifully, but doing it especially poorly, such a mistake is not only made by ordinary people, but also by these two geniuses of Google.

After Google insisted on a Dutch-style auction to determine its IPO stock price, it immediately detonated a hornet's nest.

Wall Street's bigwigs and juniors immediately went out to attack, either in person, or for reporters and experts to publish articles, with one purpose, to sing the praises of Google's move, and to spread the remarks that once a stock is listed and traded, it will fall immediately.

Moreover, these bankers are not just talking, and they are not only shareholders who have taken action, they themselves have done a lot of things, and it is still a very deadly action: they have united many institutional investors to resist subscribing to Google's shares.

Wall Street's combined action has been very effective.

These moves have a great impact on the retail investors that Google hopes to benefit in the process of going public, and in the eyes of many investors, Google's halo has dimmed or simply disappeared, and many of them are not interested in buying Google shares.

In the face of such a large-scale and consistent singing decline, even those bigwigs on Dune Road, such as Sequoia's Moretz and KPB's Dole, have come out several times to give their voices, "This is malicious smearing,"

Moreover, there are only so many venture capitalists who come out to support Google, but there are so many investment banks that are not optimistic about Google.

That's not all, the point is,Google will also make a lot of stupid tricks for some reason.,Maybe it still feels too good.,In short,Some of Google's actions that will.,It seems that the effect is to provide God assistance to Wall Street's attack.。

For example, because they are worried that the small and medium-sized investors who subscribe, that is, too many retail investors, will raise the stock price too high, and after the IPO, the stock price has limited room to rise, which will make these users who want to figure out Guò Google go public and get satisfactory returns are disappointed in the company, so they have issued a "winner's curse" warning more than once, several times.

The winner's curse, the main meaning, is that the value of the auction item is generally always overestimated.

Roughly speaking, our stocks are risky, buy to be cautious! After the listing and trading, the probability of rising is not large, and the possibility of falling is not small, so if you buy our stocks, it will really fall at that time, don't blame us!

Don't be unpredictable!

Later, when he looked at the information, Feng Yiping couldn't figure out if he wanted to break his head, which genius made such a "stroke of genius" with a big brain?

In the eyes of ordinary investors, does this just corroborate the thesis of those investment banks on Wall Street?

As a result, Google itself successfully dispelled the enthusiasm of many retail investors, and institutional investors resisted, and the final result was that the roadshow effect was very average, and the market reaction was very cold.

Google also finally realized the severity of the problem, and Page, who rarely gives interviews, stood up and accepted an interview with Playboy, which naturally contained a lot of private goods, such as our company table is very good, there is no reason why our stock table is bad, and subscribing to our stock must be very good...... Wait a minute.

Google, which has always flaunted itself as not a traditional company, has successfully caused a big problem by ignoring the quiet period.

They succeeded in triggering the wrath of key institutions, which was so powerful that Jobs was afraid to immediately send a letter of concern and inquiry, "Why do you make such remarks during the quiet period? Give me an explanation, if you don't give me an explanation, then I'll give you an explanation,"

Naturally, the reasons for not approving the IPO are explained.

This time, more people believe that Google's IPO is really no longer certain!

Of course, Google's problem-solving ability is not bad, and it took some effort to finally calm the anger, but they are very proud to only do roadshows in the United States, not to mention Asia, not even Europe to .......

As a result, the stock was expected to be issued at a price of 108 to 135, but in the end it had to be significantly reduced to $85, a maximum difference of $50, a shrinkage of nearly 40%!

The original plan was to raise $3.3 billion, but only $1.67 billion .......

Moreover, although on the first day of the IPO, the stock price rose by only 18%, which seems reasonable, but on the second day, it rose by 27%, and within three months, Google's stock price quickly exceeded $200.

Therefore, Google's IPO pricing is actually a failure.

Originally, a good handful of cards was forced to play for them and almost lost, which may only be done by geniuses.

If you hold these stocks for a long time, whether the issue price is 85 or 135, in fact, it has little impact, but in the IPO, Feng Yiping wants to sell 5% of the shares, then whether the issue price is 85 or 135, the impact is quite large.

He doesn't remember how much Google's total share capital is, but he roughly remembers that the market value after going public is more than $26 billion, and according to that calculation, the 5% he will sell is worth about $1.3 billion.

If it can be issued at the highest price of 135 originally booked, then this part of its income will be close to 1.6 times that of 1.3 billion US dollars, and it will properly exceed 2 billion.

Even if it is issued at a low price of $103, that is more than 1.2 times, and it will end up with more than $1.5 billion.

This is a gap of more than 200 million to 700 million US dollars, how is it not a small amount, how can Feng Yiping achieve it?

Therefore, he will not care about Page's dissatisfaction.

"We all know that the IPO price is more than $100, which is the dividing line, and above or below $100, the difficulty will be very different, so can we weigh the possible results of these two approaches?"

"I think the main basis for judging the success of the listing is whether it can bring us the most cash, and the rest of the retail investors are secondary, what do you say?"

Page and Brin are always prone to sway left and right on some key things, for example, of course, they also hope that the higher the amount of cash out in the listing, the better, but they don't want the world to think that this is their pursuit, so they are involved in giving retail investors a fair opportunity to invest such a fig leaf.

As a result, retail investors don't want to buy, and their own income is greatly reduced.

At this point, Feng Yiping still admired Zuckerberg who was later K, and he made it clear that what I pursue in an IPO is high returns, so he also plays auction-style pricing, but because of the clear goal, he played very successfully, and on the first day of the IPO, the stock price only rose by 0.6%!

But so what? Isn't K still a good company, a great company, a company worth investing in in the eyes of the general public?

Feng Yiping has a lot of plans and opportunities next year, and the higher the return on listing, the better.

"If the investment bank has the confidence to have our stock listed at a high price of more than $100, I think that's an option to consider, what do you say?"

"Feng, we can't just see the immediate benefits, we hope that our listing can set an example for future companies, and also benefit more ordinary investors,"

It is indeed an example, but it is an example that is close to the opposite.

"Paige, I just want to remind you that some things are just incidental and not the main purpose of the IPO, what do you say?"

"The best IPO is to return it to its essence, not to abandon the basics, if the priorities are reversed, then it is possible that none of our goals can be achieved,"

"I'm not against auction-style pricing, I just hope that at least a few of us can have a very clear understanding of the hardships of this road."

"Are you still in favor of doing this?" asked Page.

"Of course, we will definitely maintain a high degree of unanimity, I agree with and admire your persistence, and I will fully support and cooperate with you to achieve such a goal,"

But that doesn't seem to be what you mean.

"Anne informed me that the meal was ready," Brin interrupted their argument just in time.

It turned out that before I knew it, it was already evening.

"Let's eat first, and we'll talk about it tomorrow," (To be continued.) )