The listings of Meituan and Intranet have completely stimulated companies such as Tudou, YY Live, Qunar and Guanghui Weibo, and each company has launched its own listing plans one after another.

For companies, why go public? It's a simple and complex question.

To put it simply, it is for financing, that is, to raise more money. There are two ways for owners of a company to raise funds for various purposes, such as expanding their scale.

One is borrowing. Businesses can borrow money from banks or issue bonds. Lenders and bond purchasers receive interest from the business in return, they own the business's creditor's rights, and once the business returns all the principal and interest, the debt relationship ends. Creditors cannot directly influence and intervene in the operation of the enterprise, nor do they bear the risks of the operation of the enterprise, that is, the debts must be repaid regardless of whether the business is good or bad.

Another way is to go public and issue shares. The business gets the capital it needs while selling ownership to shareholders large and small. Shareholders obtain income through dividends, dividends, etc., and also share the risks of the enterprise.

Unlike bonds, companies are not obligated to recycle shares from shareholders. Shareholders can only resell shares to other people.

From the perspective of the company's owners, there are pros and cons to both types of financing: the issuance of bonds is paid and the principal and interest payments are required, but the ownership of the company is still 100% in their own hands. Issuing shares can raise a large amount of money for free, at the cost of apportioning one's ownership of the company.

From Jiang Hui's point of view, Internet companies such as Intranet and Meituan choose to go public for financing, and real industries such as Guanghui Mobile Phone and Guanghui Automobile choose loans or issue bonds for financing.

On the one hand, Internet companies lack physical assets and find it relatively difficult to obtain bank loans, and of course, Internet companies such as the school intranet, which are not bad for money after listing, are an exception; on the other hand, the real industry of the Guanghui Group is currently small in scale and its valuation is not high, not to mention whether it meets the requirements for listing, even if it is listed, it will not be able to raise much money, but will give up its shares, and the long-term losses will be very large.

Therefore, Jiang Hui is generally supportive of the group's Internet companies preparing to go public, of course, Jiang Hui will definitely not agree to go public if it is a core enterprise in the core such as Guanghui Pay.

……

"Mr. Jiang, this is the listing plan of Tudou, potato, nico, YY live and Qunar and other companies," Liao Yun said to Jiang Hui with a bunch of documents.

"Which of these companies do you think is better to go public first?", Liao Yun has been working with Jiang Hui for more than a year, and Jiang Hui is also quite satisfied with her, and intends to cultivate her, and in the future, which subsidiary will be a high-level and a prince.

"I think Tudou and YY Live are the largest, and they should be suitable for listing first," Liao Yun said after thinking about it for a while.

"My view is different from yours, the process of going public does not necessarily mean that a large scale of the enterprise is more advantageous or more suitable. In the case of two brother companies, Tudou and Potato, I think the latter is more suitable for going public first," Jiang Hui said.

"Why?".

"It's very simple, because we're all going to go public on the NASDAQ, whose territory is NASDAQ? Americans'? Although Tudou has more users than Potato, and the advertising revenue is higher. But if you were an American, and you had to choose between two companies, which one would you invest in? The two are the number one video company in the Celestial Empire and the U.S. market."

"Maybe both Americans and Celestial Empire people will choose to invest in potato."

"yes, definitely. We have to admit a fact that we don't want to admit, that is, the international financial market is still in the hands of the Americans, and the same type of companies can easily achieve better valuations if they perform well in the American market."

This topic is a bit cliché, but just look at the difference in market capitalization between Google and Du Niang when they went public. Although Google is indeed stronger than Du Niang, in 2005 and 2006, the gap was limited, but the difference in market value was very huge.

"Does that mean that Korn Ferry Group will give priority to foreign and international subsidiaries to be listed first?"

"Yes, after a few years, the international market's acceptance of the Celestial Empire concept stocks has reached a new height, and then arrange for the listing of enterprises mainly engaged in the domestic market."

"Then if these unlisted companies lack development funds, will they be affected to seize the market?"

That's a good question. The fact that companies such as Tudou and Guanghui Weibo are temporarily not listed does not mean that they will not raise funds. I can cash out some of the shares of listed companies when the stock price is relatively good, and use these funds to feed back to unlisted companies. The other shareholders are either following or their shares are diluted, either way, it's not a bad thing for me."

"It's good, but I don't know if the employees of the company that is not listed will have resentment in their hearts."

"There are more companies that are not listed, and if employees have grievances against the company because of this, I think it is better for such employees to leave early. On the other hand, some employees may work harder to get options because the company has not yet been listed," Jiang Hui said with a smile.

In the morning market, the general employee shareholding is relatively small, and the company's incentives are more in the form of cash, which is typically represented by the Penguin Company of later generations. Enterprises in the evening market, relatively speaking, employees will hold more stocks and less cash rewards, and the typical representative is Alibaba in later generations.

Which way is more motivating for employees? Generally speaking, the employees of Penguin Company and Alibaba seem to be living a relatively prosperous life, especially the employees who joined the company earlier.

As far as the Korn Ferry Group is concerned, in the early days, Jiang Hui generally adopted a share-based incentive method for partners, but later Jiang Hui considered that the valuation of each company increased too quickly, and the difference between the value of employees with equity and without equity was very large, and everyone was not necessarily able to realize the value of these stocks at the beginning, so slowly Korn Ferry Group adopted cash incentives as the mainstay, supplemented by option incentives to motivate employees.

Judging from the current situation, the employees of Guanghui Group are still quite satisfied with their treatment and status, of course, Liu Chujing, the Minister of Personnel, has also made a lot of efforts, and finally did not waste the equity given by Jiang Hui at that time.

Mencius once said: "If you treat me as a soldier, I should repay you as a soldier! If you treat me as a passerby, I will repay you as a passerby! If you treat me with a mustard, I should repay you with revenge!"

Although two thousand years have passed, some of the classic quotations of our ancestors will never fade!

(End of chapter)