Chapter 288 Computer Park Begins IPO
There is no impermeable wall in the world, and the news that ATV Group is preparing to build a large-scale studio quickly spread throughout Hong Kong's film and television circle. This is not something that needs to be kept secret, on the contrary, ATV Group is just using it to make a big splash for itself.
As a result, Ms. Zhou Liang Shuyi, president of the group, soon accepted an exclusive interview with "Daily Daily". In an interview, she talked about the ambitions for the future development of ATV Group, and the film and television city is an important part of the overall plan. At the same time, she also told reporters that ATV Group had just held a board meeting and passed a resolution on shareholder capital increase.
Among them, Mr. Li Xuan, the absolute controlling shareholder of ATV, will inject HK$200 million into ATV to support ATV's film and television city project. Standard Chartered Bank and Jiahua Bank also issued a statement on France that they are willing to provide credit support for ATV's film and television city plan.
Since the Sino-British negotiating team formally launched talks on the Hong Kong issue at the end of September last year, although the two sides have held several rounds of consultations, not only have they not reached any progress, but the atmosphere has become more and more deadlocked. This can be seen from the wording used by the heads of the negotiating delegations of the two sides in interviews with reporters after each round of talks.
For example, after the first few consultations, when the head of the Chinese delegation was interviewed by a reporter from Hong Kong's ATV, he would say that "this is a friendly and constructive meeting." Soon after, the modifier "friendly" disappeared. Later, the word "constructive" was also deleted, which means that the next few negotiations were unfriendly and meaningless.
Under such circumstances, Hong Kong, as a key stakeholder in the negotiations, will inevitably fall into a state of restlessness. At this time, ATV Group suddenly announced in a high-profile manner that it would invest in the construction of a large-scale film and television city. Behind ATV stands Li Xuan, the richest man in the world. He also decided to increase the capital of ATV by 200 million Hong Kong dollars.
Does this mean that "God of Wealth Lee" continues to be optimistic about Hong Kong's future development? You must know that it will take a long time for such a large-scale fixed asset investment plan as Xiang Film and Television City to gradually recoup its profits. If Li Xuan is not optimistic about the future, Hong Kong will continue to maintain prosperity and development for a long time. There is simply no need to invest heavily at such a time.
"Mr. Li, the Chinese Manufacturers' Association sent an invitation. I invite you and your wife to the foundation stone laying banquet of tomorrow's CMA Building!" Ke Lilun walked into Li Xuan's office with an invitation.
"I received a call from President Ni yesterday, and I have already rejected it, and President Han will attend on my behalf to congratulate me! By the way, I will sign a check for 1 million yuan later, and you ask President Han to help me bring it! It is said that the construction funds for their CMA building have not yet been fully raised!" Li Xuan put the invitation aside casually and said without raising his head.
The Chinese Manufacturers' Association was recently organizing a delegation to Beijing, and Li Xuan was not prepared to go north at this time, so he simply avoided the invitation of President Ni of the Manufacturers' Federation. The ATV Group's recently exposed plan to build a film and television city is enough to show his attitude. Li Xuan has been steadily contributing to the prosperity of Hong Kong. has contributed its own strength, and this kind of visiting group with a strong political atmosphere is not ready to steal the limelight.
"Mr. Bush of the Computer Park Company, I will meet you at ten o'clock!" said Co. C. Lilun continued to report to his boss on the morning's arrangements.
"Marven is coming to Hong Kong, you can help me book a restaurant, and I'll invite him to lunch later!" Li Xuan said with a smile.
Naturally, this Bush is not the current US Vice President George H.W. Bush, nor the future US President George W. Bush, but the youngest son of the elder Bush, Marvin Bush. He joined Computer Park two years ago.
As the son of the vice president, Marvin Bush naturally does not need to work hard from the bottom like other peers. Although he joined Computer Park Inc., he had only graduated from university less than two years ago. The qualifications in the workplace are still very shallow. However, Marvin was directly appointed as the administrative secretary to the company's president, John Martin.
In just two years, Marven has climbed to a middle-level position in the computer park company, which is almost as fast as riding a rocket. You must know that the current computer park company is not an unknown person.
In the list of the top 500 companies in the United States in 1982 just released by Fortune magazine, the computer park company successfully entered the list with an annual turnover of 1.78 billion yuan. It can even be ranked in the middle of the list.
Because of this, the computer park company is unanimously optimistic about Wall Street capital and is considered to be one of the several pre-listed companies with the most investment potential at the beginning of this year. Computer Park has begun an IPO roadshow across the United States. It will be available on the NASDAQ soon.
Now, countless eyes are focused on the computer park company. If Marvin Bush's information is turned up and hyped up by the media with a good heart, it is easy to cause some unnecessary controversy. Marvin's father is the vice president of the United States. His son's meteoric rise through the ranks at the Computer Park Company is easy to make bad associations with the public.
Therefore, the company's management decided to simply send Marvin Bush to overseas departments, so that the chances of exposure would be much less. The company's global layout is mainly divided into the Americas, Europe and Asia-Pacific. Marvin was recently appointed vice president of the company's Asia region, mainly responsible for the business in the Southeast Asian market.
The Asian region of Computer Park can be subdivided into three market segments: East Asia, Southeast Asia and the Pacific. Among them, East Asia mainly includes Japan, South Korea and Taiwan, and the Pacific mainly includes Australia and New Zealand. Southeast Asia, on the other hand, is the smallest segment, with only five stores in Hong Kong, Singapore and Kuala Lumpur, Malaysia.
Although Li Xuan intends to befriend the Bush family, it is impossible for him to let an inexperienced hairy guy take up too important positions, which is irresponsible for the company's development. Don't look at Marvin Bush as the vice president of the computer park in Asia, but in fact he only has jurisdiction over five stores, and his powers and responsibilities are not heavy.
"Marven, welcome to Asia, this is a place very different from the United States!" Li Xuan said to the high-spirited young man in front of him.
Well, in fact, Marven is five or six years older than Li Xuan, but Li Xuan is a pervert who transcends the boundaries of age. Anyone who sees him for the first time will unconsciously exclaim that he is so young. But when everyone actually communicates with him. But they will unconsciously ignore his real age.
"Yes, there are completely different oriental cultures here. There is also a rapidly growing market!boss, and I am planning to move my office address from Tokyo to Hong Kong. It is closer to Southeast Asia! In more than a dozen countries in Southeast Asia, with a population of nearly 500 million, the company has only opened three stores in such a wide market, excluding the two stores in Hong Kong. I hope to come up with a detailed expansion plan within six months!" said Marvin Bush with some excitement.
Computer Campus's Asian headquarters is based in Tokyo, and the company has opened as many directly operated stores in Japan as it does in all other Asia-Pacific markets combined. Therefore, the focus of computer park operations in Asia will definitely be in Japan. And Marvin clearly has some ambitions and doesn't want to be a nominal vice president in Tokyo.
"Of course, if your market research report is convincing enough. The company will definitely support your plans!"
Li Xuan shook his head, but he didn't say anything directly, let him go and slowly understand the market first. With the exception of Singapore, most countries in Southeast Asia are still relatively backward, and Li Xuan is deeply skeptical about the demand for emerging high-tech products such as personal computers.
Li Xuan had lunch with Marvin, a member of the Bush family who will stay in Asia for the next few years, spending most of his time in Hong Kong. This is an excellent opportunity for Li Xuan to further deepen his personal relationship with the future first family in the United States.
Li Xuan has just returned to the company. I received a transatlantic call from John Martin from the United States.
The first issue of Time magazine in 1983 chose a photo cover of the ABC-3 computer. At the same time, the magazine also used an enthusiastic article to announce the arrival of the personal computer age. Time Magazine's judgment is not wrong, and Computer Park is the largest computer chain seller in the United States and even in the world. Last year's turnover increased by 450% compared to the previous year.
Although there is a factor in the expansion of the number of stores, it is undeniable that the sales of the entire PC market are growing rapidly. The year 1982 has just passed. Computer Parks had global sales of $1.78 billion, with 1.52 million computers sold.
Such a proud number of jù. It has also made the national IPO roadshow of Computer Park Company in the United States warmly sought after by investors from all walks of life. A public launch team led by John Martin, the company's president. The first stop on the itinerary was the Waldorf Astoria Hotel in Manhattan, New York. The influx of investors directly overwhelmed the hotel's large conference hall with a capacity of 1,000 people.
So much so that the computer park company had to urgently change its plan, and increased the original plan to hold only two investment promotion conferences in New York to five, so as to finally satisfy investors' curiosity about the company. Seeing that the company's shares were so popular, Li Xuan directly instructed John Martin to put pressure on the three major underwriting brokers to significantly increase the listing price of the shares.
According to the original plan, Computer Park would issue 15 million shares at a price of $24 per share, accounting for 20% of the total share capital, which means that Wall Street's initial total valuation of Computer Park would be $1.8 billion. But Li Xuan's ambition is obviously not satisfied with this, and he doesn't mind making a lot of money from the capital market.
In the 60s, the U.S. capital market set off an "electronic" craze, and all companies with electronics were popular as soon as they went public. For example, Intel seized this opportunity and went public with a large sum of money, thus laying the foundation for the glory of the entire seventies. And there is a company called EDS that created Zào, and it created a listing miracle at that time with a price-earnings ratio of 150 times.
The IPO myth of these companies has made people who invest in them in the early stage make crazy money. And it is precisely because of the stimulation of this huge "money-making effect" that venture capital began to appear in batches in the United States, thus opening the prelude to the development of high-tech in the United States represented by Silicon Valley.
Now, Wall Street's sensitive market drivers are beginning to notice that the focus of industrial attention across American society is shifting. Traditional industrial industries represented by chemicals, steel, automobiles, building materials, electric power, etc., are likely to stagnate or even shrink in the future market growth in the face of the government's increasingly tough environmental protection policies.
The next step of economic growth needs to be expected to be on new industries, and the rapid expansion of the personal computer industry is undoubtedly an excellent example. It is precisely because of this macro-level economic trend that intentionally or unintentionally further boosted the popularity of computer park companies.
"Boss, isn't $30 too high!" John Martin said cautiously on the phone.
Today, he suddenly received instructions from Li Xuan from Hong Kong, asking him to renegotiate with Merrill Lynch, the lead underwriter of the listing, and raise the company's stock issue price and total amount of funds raised by a large margin, which is bound to be opposed by Merrill Lynch.
"Don't worry, Martin, you should be bold! In terms of the popularity of Computer Park Corporation, the issue price of $30 is not very high! Don't listen to the of those people at Merrill Lynch, to hell with the price-to-earnings ratio!
I believe that even if we raise the issue price to $35 in time, the stock will not be smashed in the hands of their brokerage and cannot be sold! This is a matter of almost zero risk for them, so you have to be tougher!"
This morning, he sent instructions to the U.S. side, asking them to raise the issue price of the computer park company's shares to $30 and the public offering to 20 million shares. As a result, the actual amount of funds raised by the computer park company will increase to $600 million, and the company's total valuation will also increase to $2.4 billion.
John Martin, the president of Computer Park, was a little unconfident about this, but Li Xuan didn't care at all. P/E ratios and profitability are perhaps important indicators for most prepared companies. But for a company like the computer park company, which has obviously been frantically sought after by the market, it is a fart.
Most companies that are preparing to go public should consider the room for the stock to continue to grow after listing when setting the issue price. If the price falls below the issue price as soon as it is listed, it will deal a huge blow to the confidence of shareholders and put the company's management under great pressure.
After all, the stock price is related to the vital interests of all investors, and if the management cannot protect their interests, they will use the voting rights of the shares they hold to get the management out. But that's for companies with diversified shareholdings, and computer park companies are an exception.
Li Xuan still has an absolute controlling stake in the listed company, and minority shareholders have no room to speak at all. The shares held by Li Xuan will have a long lock-up period according to the regulations, and the risk of short-term stock price fluctuations that may be brought about by the high issue price has no impact on him at all.
In the long run, the prosperity of the personal computer industry is bound to give the computer park company a huge development prospect. This is also the confidence of Li Xuan's instructions that Martin in the United States can take a tough attitude when negotiating with the underwriter Merrill Lynch Investment Bank.
Li Xuan did not believe that the stock price of the computer park company would fall after it was listed. On the contrary, it is more likely that the computer park will be like the one when Aikang went public, and it will usher in a skyrocketing price on the first day. However, the interest of the actual stock price higher than the issue price has nothing to do with the listed company. Li Xuan's decision to raise the issue price will inevitably compress the profit margins of investors who subscribe to new shares from brokers. However, this can allow the listing of computer park companies to maximize their benefits.
After hanging up the phone, Li Xuan was also a little helpless. John Martin's abilities are indeed a little mediocre, at least he is not ambitious enough and cringes a little. Fortunately, Computer Park is far ahead of any other competitor in the PC sales market.
This is also one of the major selling points of the company's IPO, a company that occupies the largest share of the industry and does not have any rivals to defeat alone, which is enough to give investors endless confidence. Let them believe that the stocks of the computer park have great investment value! (To be continued......