"Listing in the United States?" Premki was a little confused, not understanding why Zhang Chen suddenly brought up this topic.

Zhang Chen smiled and said, "Mr. Premki, you should already know that in addition to Matrix, I am also a director of Salomon Smith Barney and the chairman of Tinder Capital. Tinder Capital also has the Cowyce Fund that can provide IPO services, and if you want to go public in the United States, I can provide comprehensive assistance to iPRO. ”

Since the two sides have long had the intention of cooperating, iPro naturally did a considerable degree of information collection on Zhang Chen, and was very clear about the financial influence that Zhang Chen now has. But the news of going public in the United States is also too sudden.

Premki pondered for a long time: "ipro has completed its IPO on BSE (Bombay Stock Exchange) five years ago, and is now a listed company in India, and we are not ready to delist from India and register in the United States. ”

If it is listed in the United States, the company must be registered in the United States, which is an irrepressible law, the registered place is in Mumbai, and the actual place of operation is in Bangalore.

Zhang Chen smiled: "There is no need to delist, if we go public in the United States, we can completely adopt the ADR (American Depositary Receipt) model." In fact, when foreign companies are listed in the United States, they basically adopt the ADR model to enhance their financing capabilities. ”

Although he interrupted his studies at Stanford due to the death of his father, years of hard work in the business industry, especially in the process of listing in Mumbai, gave him a deeper understanding of the capital market.

"The requirements for ADR are more complex and more expensive. Moreover, ipro's financing needs are not strong at the moment, and frankly, ipro has no plans for ADR at the moment. Premki said calmly.

In fact, almost all foreign companies listing in the United States are carried out through ADR, which is also to circumvent U.S. securities laws.

U.S. securities laws require companies listed in the U.S. to be incorporated in the U.S. The United States is the world's largest financial market, and all companies with strong financing needs will undoubtedly greatly affect their ability to raise funds if they cannot be listed on the US stock exchange.

It is precisely for this reason that ADR or American Depositary Receipts came into being, which in layman's terms, is that a foreign company hands over its shares to a U.S. financial institution for custody, and the U.S. financial institution packages the corresponding shares into depositary shares or depositary receipts and then issues them, so that the issuer becomes the financial institution registered in the United States, thus circumventing the U.S. securities law.

In later generations, almost all IPOs of Huaxia companies in the United States, including Ma's Alibaba, were issued in the United States in the form of ADRs. Such depositary shares are also subject to a ticker symbol and are also required to register with the SEC, which is more regulated than ordinary U.S. companies.

Of course, ADRs are also graded, and only the strictest sponsored tier 3 ADRs are allowed to be publicly offered, while tier 3 ADRs are already almost indistinguishable from common shares in dealers.

But again, ADR also has a disadvantage, which is the cost.

Due to the existence of custodians and the issue of reviewing regulatory fees, the cost of ADR is generally much higher than that of the average U.S. company listing, and although this fee can be negotiated with the exchange, an additional issuance cost of 5% is always indispensable.

Therefore, many companies are not willing to spend such a high additional cost to list in the United States if the need for financing is very strong, they are very confident in the development of their own companies, or the domestic securities review system is too stringent to achieve a domestic listing.

For a person like Premki, who is extremely cost-conscious, it is really difficult to accept that he would spend so much extra money to go public in the United States.

And now ipro is operating very well, as a blue-collar worker in the IT industry, in the case of not so fierce competition, it is the time to lay the foundation, and it is not a good thing to expand too fast.

After listening to what Primki said, Zhang Chen just smiled: "It's okay, Mr. Primki, this is just a small suggestion from me, no matter what decision you make, it will not affect the cooperation between Matrix and ipro in the short term." ”

Premki's pupils shrank: "In the short term?"

Zhang Chen shrugged: "Don't get me wrong, it doesn't mean anything else." It's just that as far as I know, you and Mr. Murthy of Infosys are good friends, and as the two giants of the Indian software industry, I thought that the road to Infosys' US listing would also touch you. ”

"infosys is going to be an ADR?" premki grimaced, infosys is ipor's biggest competitor, the two companies entered the software outsourcing field almost at the same time, infosys is even a little bigger than ipro, but the profitability is slightly worse than ipro.

There are also historical reasons why India's software outsourcing industry has been able to develop. At the end of the seventies, India's ruling Bharatiya Janata Party (many parties that make up the BJP, mainly the Socialist Party) had very tense relations with the United States, expelling large American companies such as IBM, and India's IT industry became a vacuum. At this stage, people such as Premki and Murthy keenly identified business opportunities and copied foreign computers and software, thus laying the foundation of India's local IT industry.

Primki and Murthy are both friends and direct rivals, and together they share nearly 50 percent of India's outsourcing market, and both are growing rapidly.

Premki waved his hand and asked the other IPRO employees to leave before he spoke, "Where did you get this news from?"

Zhang Chen just smiled slightly, and said incomprehensibly: "You know, Wall Street has a lot of secrets, but for many people, secrets are not secrets. ”

Primki pondered for a while, then said with a smile: "Thank you very much to Matrix for giving ipro this opportunity to work with the most creative companies in the world." If you don't like it, you can stay in Bangalore for a few more days, and let me do my landlord's friendship. Although there is no Golden Gate Bridge here, it does have a view that is not inferior to Yosemite. ”

Zhang Chen shook his head regretfully: "I'm sorry, I may have to leave tomorrow, there are indeed a lot of things." Said Wan Zhang Chen's words changed sharply, "For what I said, you can seriously consider it." I admire your vision all the time, and I believe you know better than anyone that it is far from the apex of the IT industry, and whoever grasps this wave will be able to conquer this era. ”

At this point, as for what decision Premki makes, it is not for Zhang Chen to continue to influence it.

"OK, I'll think about it seriously. Premki blinked, "I'll arrange dinner in the ipro cafeteria so that you can get to know ipro more closely." ”

Damn, I obviously want to save money.

(End of chapter)