Chapter 175: Aikang goes public
Often, when we refer to London, we tend to refer to "Greater London", which is made up of 32 boroughs. Chelsea, Tottenham and Arsenal in the Premier League are all known as London teams because Kensington-Chelsea, Haringey and Islington, where they are home stadiums, are among the 32 boroughs under the Greater London Metropolitan Area.
But the City of London in the narrow sense only includes the City of the City, which is less than a square mile. It began 800 years ago and was the world's most important financial center long before the Industrial Revolution, with a history much older than Wall Street in Manhattan, New York.
However, in the twentieth century, Britain experienced a sharp decline in comprehensive national strength after two world wars, the status of the world's number one power was replaced by the United States, and Wall Street also overshadowed the City of London to become the world's new financial center in one fell swoop. But the City of London remains the world's second-largest financial center after Wall Street.
The small city is home to more than 600 banks, the world's largest foreign exchange market and international insurance market, the oldest stock exchange and gold market. 35.8% of the world's daily foreign exchange transactions, 70% of international bond transactions, and 19% of cross-border loans are conducted here.
Li Xuan's luxury Bentley drove past an eight-story windowless fortress-like building, which was the headquarters of the Bank of England, the central bank of the United Kingdom, known as the "king of banks". And a matchbox-shaped building adjacent to it is Li Xuan's destination, the London Stock Exchange. It has a history of more than 200 years from its establishment to today, and can be called the originator of the world's securities trading.
The London Stock Exchange opens very early in the morning, with daylight saving time opening at 7.30am. A new listing often has a ceremony to ring the market bell. The exchange had already set up a small stage early.
It was not yet 7 o'clock when Li Xuan arrived at the exchange, and there was still some time before the ceremony began. So he went to a conference room for a short rest. All the high-level executives of Aikang Company had already arrived, and Li Xuan was a little bloodshot from everyone's eyes. It can be guessed that many people did not sleep well last night.
"This is the head of investment at the British Rail Pension Fund, Sir Jenal!" said Hawke, the president of Akon, with a beaming face, and today was his day of glory. He smiled and introduced to Li Xuan the Englishman in front of him with a slight hint of strictness.
"Hello, Mr. Li!" Jenaler showed a somewhat pleasant smile on his face, and nodded at Li Xuan very gentlemanly.
Pension funds are one of the most important investors in the European and American stock markets, and the shares owned by various pension funds in the United Kingdom account for more than 20% of the total market capitalization of all listed companies on the London Stock Exchange. Therefore, whenever there is a stock market crash, Western newspapers will appear reports such as many people who are close to retirement because their pensions have shrunk sharply and have to postpone their retirement.
The railway superannuation fund controls more than £10 billion of pensions for all employees of the entire British rail system. It and another company, Greater London Public Employees' Pension, are among the two strategic investors that ICON has previously introduced.
Six months ago, when they took over the shares of Aikang from their majority shareholder, Dongfang Electronics, they were valued at £4.5 per share, and now the final issue price has soared to £8. In other words, in just half a year, their return on investment in Aikang Computer Company is nearly 80%.
And after the stock is officially listed and traded, the probability of the stock price continuing to rise is very high. Although their agreement with Aikang has a lock-up period of between three and nine months for all shares, these gains are now only floating profits. But at least Jenaler himself is very optimistic about the future of Aikang Computer Company.
There's no end to the money. Li Xuan will not feel sorry at all for the 20% equity transferred before. If you will only eat alone, you will not share the profits, you will only be isolated by the market.
In fact, Li Xuan is very satisfied with the strategic investors selected by Aikang. Like these two pension funds. Their most important duty is not how much they earn, but how much they are worth. So as long as the company is stable, they will not lightly sell the stocks they hold. This ensures the stability of the company's stock price in a large way.
And like the British Rail Union, it is a very powerful organization. Although it is not like the British Coal Miner's Union, which can bring down several successive governments, it has no weak influence on the political situation in the United Kingdom. and a foundation that holds pensions for employees of the entire railway industry. Naturally, it also has a lot of influence. When they become the main shareholders of Aikang, they will do their best to protect Aikang for their own interests.
"Sir Jenal, you've made another wonderful investment!" said another old man in a dark tuxedo, smiling with a glass of champagne.
"Sir Goodison, yes, I'm sure it's a good deal, thank you for bringing this Mr. Lee!" Janalal smiled again and nodded at Li Xuan.
Li Xuan had already recognized that the person in front of him was Nicholas Goodison, the chairman of the London Stock Exchange. Goodison was able to personally attend the listing ceremony of Aikang, which was a matter of pride for Li Xuan.
"Hello, Mr. Chairman!" Li Xuan greeted the other party politely, and then replied to Genaler, "Thank you Sir Jenaler for your trust in Aikan, I believe that Aikan will definitely repay the trust of all investors with better performance!" "Mr. Li, Aikang is a very promising company, thank you for choosing the London Stock Exchange, I believe you will have a wonderful memory today!" Goodison said with a smile.
At this time, it was time to start the listing ceremony, and all the guests began to leave the conference room and go to the ceremony site.
"Ladies and gentlemen, thank you very much for taking time out of your busy schedules to attend the listing ceremony of Aikang Computer Company! Aikang is a very young but energetic company......
Albert Hawke, CEO of iKang, delivered a warm speech and recalled the entire entrepreneurial process of Aikang with enthusiasm. In his wonderful description, this is a scrappy and positive emerging company, a technology company that has grasped the pulse of the times and led the technological trend of the new era.
"Poof!" as Hawke dropped his hammer slightly. In the midst of this crisp chirp, dozens of camera flashes flickered. Colorful streamers fell from mid-air. On the small high platform, a group of executives of Aikang Computer. greeted everyone's warm applause and congratulations, but Li Xuan stood under the stage and pursed his lips and chuckled.
With this hammer falling, a new day of trading on the London Stock Exchange has officially begun. At present, stock trading has not yet realized electronic trading, and the method of open outcry in the hall is still used.
The trading floor of the exchange is like a noisy wet market, with traders from various brokerage firms with membership seats wearing different colored vests, shouting their quotes and making specific gestures.
Li Xuan and all the VIPs of Aikang Company were invited into a VIP room, and through the transparent glass wall of the VIP room, they could clearly see the lively scene of people in the trading hall.
"Buy 100 lots. The offer is 850p, and there is still no match for selling!" an information clerk from the exchange kept relaying the latest information on Aikang stock to the crowd in the VIP room.
1 pound is equal to 100 pence, and the price of shares on the London Stock Exchange is quoted in a parency, with the smallest share price change being 1p. Aikang is the most talked-about new stock today, attracting the attention of a large number of traders within the exchange. But since the opening of the market, there has still not been a single deal.
This is not bad news, but good news! Because investors who have subscribed to Aikang shares are still not satisfied with the current quotes. They feel that the stock price can rise even higher.
In fact, the opening price has nothing to do with the amount of funds raised by Aikang. The issue price signed between Aikang and the brokerage is 8 pounds per share, and 20 million shares totaling 160 million pounds, and the actual funds that Aikang can receive after deducting the issuance costs are about 150 million pounds. In fact, the money has been transferred to the account of Aikang.
The real impact of the issue price is the investors who have subscribed for new shares from several underwriting brokers. The more the opening price is higher than the issue price, the more they earn the difference. Of course. For Aikang, being able to open at a premium rather than breaking the issue price represents investors' recognition of the company. It is conducive to the company to establish a good market image.
"Buy 100 lots, offer 905p!"
"200 lots bought. Offer 920p!"
"Buy 200 lots, offer 945p!"
"Buy 100 lots. Offer 970p!"
There are only surging buy orders in the market, and the quotations are constantly rising, but there is still no one to sell. Everyone was very patient and waited for the first successful deal.
"Sell for 500 lots, offer 1,000 pence!, God, someone has finally sold!" the messenger shouted to the crowd as soon as he received the call.
"1000p buys 50 lots, and the first deal is done!" he said quickly and excitedly.
Everyone in the VIP room immediately burst into cheers, and everyone couldn't help but applaud enthusiastically. The opening price was 1,000pence, or £10, a full 25 per cent increase from the original issue price of £8 per share.
The IPO was undoubtedly a huge success, and the market capitalization of AKON Computer instantly reached 1 billion pounds at the opening price!
"Congratulations, Mr. Li, you have created a miracle, Aikang should be the fastest company in the history of the United Kingdom to reach a market capitalization of one billion pounds, and I am optimistic that it will soon be included in the Financial Times index!" said Goodison, who was standing next to Li Xuan, with a sigh on his face.
Not only him, but many people who knew Li Xuan's details quietly set their eyes on this young man. Oriental Holdings still holds 60 million shares of Aikang, and the young man in front of him has been promoted to a real billionaire from this moment on.
In the past, the valuation of Aikang was high, but it was just a valuation and could not be recognized by everyone. However, after the company is listed, the stock price reflects the consideration of the price of a company by the entire market, and the stock has become a bunch of securities that can be discounted at any time! (To be continued......)