After Ye Weiyu gave birth successfully, the Lin family became more cautious, after all, the child is still young, and all aspects need to be paid attention to.

Ye Weiyu stayed at home to recuperate and recover, Lin Feng specially hired a professional nutritionist, confinement sister-in-law, and added two nannies, plus Zhao Jing and other bodyguards, to form a "star confinement parenting group" of up to 8 people, specifically responsible for taking care of Ye Weiyu and Lin Dandan.

Speaking of which, Lin Feng also thanked Li Zekai for his help, and he recommended Uncle He, the housekeeper of the Li family, to help with the selection and assessment of the personnel of the "parenting group".

Only then did Lin Feng deeply feel how strict the real rich family is in many aspects:

All candidates must pass three levels: Feng Shui, Audit, and Exam. Requirements: The face can not be restrained with the owner's family, the family background is innocent, the person and the family members have no tainted records and criminal history, and have first-class professionalism.

More than 100 people recommended by Hong Kong professional institutions participated in the assessment, and Lin Feng specially hired Su Minfeng, a master of easy learning, to be responsible for the first checkpoint, and half of them were not selected in the first round of screening.

In the second level, Uncle He sent someone to investigate the net worth of the finalists and their relatives, and half of them were out.

The third level is the examination of the Lin family's existing bodyguards, nannies and nurses.

The employment period of all employees is half a year, the monthly salary is as high as 100,000 Hong Kong dollars, the reward and punishment system is clear, and the best performance can get a monthly salary of up to 200,000 Hong Kong dollars, and the salary of the day will be deducted if the rules and regulations specified by the master are violated, and the violation will be immediately dismissed for 2 times.

The Lin family's rules for the "parenting group" this time are completely copied from the Li family's rules: the baby can't leave people's sight for 24 hours, the bodyguard can't hold the child if it's a rough person, the chef can't hold the child if there are many bacteria, and the whole body must be disinfected before others touch the child. The first time the child cries, the nanny on duty must appear to comfort him as soon as possible, otherwise he will be fined......

Lin Feng was speechless when he heard this, of course, for his precious son, he couldn't be too strict and careful.

He and Ye Weiyu both felt that such rules were very good.

In comparison, Lin Feng's choice of people around him before was too casual and sloppy.......

Fortunately, Li Zhao and the others followed him before he made a fortune, and they have established a full degree of trust between them.

However, Lin Feng thought that from now on, in these aspects, he still needs to learn more from an old rich family like the Li family!

For Uncle He, who helped a lot, Lin Feng was naturally very grateful, and he specially wrapped a red envelope of 2 million Hong Kong dollars for Uncle He as a thank you.

As for Li Zekai, Lin Feng promised that when he was listed, he would definitely set aside a part of the allotment amount for Li Zekai.

At the same time, next to the Lin family's mansion, an additional 10,000-foot (about 1,000 square meters) baby paradise was built, which included a fairytale-colored children's room, a baby pool, a game area, a sports field, etc., so that Lin Dandan could have a happy play environment ...... from an early age.

…………

After these arrangements, Lin Feng's energy was finally able to take out of his home and deal with the most important listing work of Fengxing at present.

For Fengxing, the submission of a prospectus (red herring) is just the first step in the road to listing.

The game relationship has changed from a game with the exchange to a game between the popular and the underwriter.

When Menglong was listed, the biggest problem faced by Lin Feng and others was how to make investors know and accept Menglong, a company that has never been famous, and whose business is also a wireless value-added business that overseas investors do not know about.

At that time, Menglong was still too weak, just founded two years ago, listed for it, equivalent to a carp jumping over the dragon gate, is a gamble on everything to fight, if successful, in one fell swoop to become famous all over the world, not only to obtain funds, but also to gain fame and industry status.

Fortunately, it happened to be after the global Internet crisis around 2000, and Chinese companies had not appeared overseas listed companies for three years.

Another 4 years have passed.

In the past four years, Lin Feng and Fengxing have grown and grown, and Lin Feng has become a world-renowned entrepreneur and billionaire, with many halos such as "business genius", "Internet strategist", "investment god" and so on.

Fengxing has also developed into the largest Internet company in China.

Today is different from the past, and now Fengxing has become a hotly sought after company in the global capital market, and it can be said without modesty that Fengxing's stocks are not worried about selling!

Fengxing doesn't even need to be heavily promoted, as long as the news of the launch of the subscription is announced, there is no doubt that it will be oversubscribed worldwide.

Then, for Lin Feng and Fengxing, the main appeal of those investment banks that served as the underwriters of the listing of Fengxing has changed from ensuring the smooth issuance of shares to being able to obtain higher financing amounts and market valuations.

To put it bluntly, it is to be able to have a higher issuance price!

Of course, in general, public companies always want their shares to be priced as higher as possible, which means that more money can be raised. Institutional investors who subscribe at the issue price hope that the shares they buy still have room for appreciation, and it is best to buy them at the lowest price.

As an underwriter, the investment bank must first ensure that the issue price can not only attract the attention of investors, but also raise the desired capital for the listed company.

Sometimes it is not a good thing to set the issue price too high, because it is difficult to get a good subscription in the promotion and sales process, and even if it is reluctantly listed, the future performance of its shares is difficult to be optimistic, which may cause a breakdown.

This will not only seriously damage the interests of investors, but also affect the company's image in the capital market and the reputation of investment banks.

Therefore, when setting prices, investment banks generally reserve a certain profit space for investors.

Of course, most of the underwriters will underwrite or underwrite part of the shares, that is, if the issue price is set low and the market recognizes it, and the listing rises sharply, the underwriters will be able to earn more profits, and sometimes the underwriters will also consider this point and appropriately lower the price......

Therefore, the process of listing a company is the process of measuring, judging and distributing the interests of the company, investment banks and funds.

From the point of view of the process, the method of investment bank pricing when overseas listing is to make market inquiries through roadshows in the predicted price range, which is the so-called "book-building (order generation management)" process to obtain orders from institutional customers, summarize the subscription amounts of customers at different prices, and increase them if the orders at the high limit exceed the multiple by a lot, and vice versa.

In other words, the process of pricing a company by an investment bank consists of two aspects: first, the preliminary price range is proposed according to the discounted cash flow method and the relative valuation method, and secondly, after the preliminary pricing range is given, the listed company conducts market inquiries through market promotion activities such as roadshows, that is, to see the response of institutional customers to the stock. The latter determines the final issue price.

However, due to the fact that the market outlook may rise due to retail investors and orders not being met by institutions, or even hedge funds, it is difficult for investment banks to be accurate to within 30% of the rise, especially for Internet companies.

It is precisely because there are too many links and uncertainties in the whole listing process that the professionalism and value of the underwriter can be reflected.

The listed underwriters of Fengxing were finally determined to be 5 investment banks, namely Goldman Sachs (Goldman Sachs), JP Morgan Chase (JP Morgan), Credit Suisse (Credit Suisse), Morgan Stanley (Morgan Stanley), and Citigroup (Citigroup).

Goldman Sachs was the lead underwriter.

The division of labor among the five underwriters varies:

Goldman Sachs, Credit Suisse and Da Mo are responsible for the content of the prospectus, and then they are responsible for overseeing the post-listing lock-up period (typically 90 to 180 days after listing).

JP Morgan is primarily responsible for the valuation and structuring of the issue (i.e. the ratio of old shares to new shares, etc.).

At the same time, Goldman Sachs also has a job, which is to serve as a stock price stabilization agency. That is, in the worst-case scenario, it cannot fall below the issue price on the first day (the greenshoe mechanism, that is, the "over-allotment option", which can stabilize the stock price trend of large-cap stocks after listing and prevent the stock price from fluctuating), and how to steadily push up the stock price in the best case. It's a very technical job, and Goldman Sachs is also the biggest expert on Wall Street trading, and this job is none other than Goldman Sachs.

Of course, as the lead underwriter and undertaking important work, Goldman Sachs will receive 2 times the commission of other investment banks!

In addition to these five underwriters, a coordinating bank, Rothschild, has also been set up, a long-established European investment bank with deep roots in the global financial circle, and an appropriate share of some benefits will naturally be of great benefit to the global subscription of popular shares at the time of issuance.

At the same time, as an independent equity advisory firm, Rothschild does not participate in underwriting, but advises Fengxing as an independent adviser, acting as an intermediary between Fengxing and the underwriter, and their rich financial experience can also help Fengxing negotiate with the underwriters......

The first game between the two sides comes at the first initial fixing before the RFQ.

Generally speaking, one of the most basic questions that investment banks have when pricing listed companies is whether they are valuing assets or pricing them, and if they are to assist in completing the transaction and ensuring that the IPO goes smoothly, then all they should do is to ensure that there are no major gaps and failures. In order to get the exact price of a company's IPO, there are roughly 5 important steps:

1. Use pricing metrics and similar companies to estimate how much investors will roughly pay for a stock: These pricing metrics come in a variety of forms, including profits, including book value, operating income, and other publicly traded companies.

Obviously, there will be subjective judgments in this process, which indicators to choose, which companies to compare with, how to control the differences, and so on.

For example, which valuation method to use (P/E ratio, P/B ratio, EV/EBITDA, EV/Sales or EV/Investment Capital)?Which companies of the same kind (Shanda, Baidu, online advertising, online retail, online services, online games, etc.) are selected?How to calculate the industry average (simple average, median, total value)?

For the valuation of popular banks, investment banks tend to use the price-to-earnings ratio valuation method based on 12 consecutive months of data, adding additional cash and reducing debt to obtain valuation.

2. Measuring demand: Investment banks determine prices by estimating how much potential investors are willing to pay for a stock, and measuring demand. If an investor reacts strongly to a certain price, they raise the price, and if the response is flat, the price is lowered.

According to the popularity of Fengxing in the capital market today, investors are very popular with Fengxing stocks, and they can appropriately raise the price on the basis of the price-earnings ratio valuation.

3. Create "darlings": Investment banks are keen not to get the right stock price, but to deviate from the price. A well-priced IPO is one in which the stock rises by 10-15% on the opening day, reducing the investment bank's offtake responsibilities, quickly rewarding core customers (who are willing to subscribe at the opening price), and at the same time, creating buzz in the media and leaving room for issuers to increase prices for subsequent issuances. What is needed in this regard is the ability of the IR to carry out publicity and marketing.

4. Valuation Theory Model: Investment banks seem to think that they have to wrap their pricing in a valuation theory model, that is, make the pricing they give look like the result of intrinsic valuation. Thus, there is DCF (Discounted Cash Flo Cash Flow Discount Method), the input data is always distorted, and the most important principle is to change until you get the desired number (obtained according to the previous 3 steps).

This link was also designed to avoid legal penalties, as the court also seemed to believe that the legal clearance of the process would also require a DCF valuation.

5. Re-assessment of needs: Although it is believed that the roadshow is to help the issuing company and its investment bank promote sales to investors, the information is transmitted in both directions. Investors' views and reactions can help investment banks reprice the opening range until the listing date, when the final price is determined, leaving enough time for investment banks to make repeated adjustments.

To put it bluntly, the core of this pricing game still comes from assessing investor sentiment and the expected trend of stock prices.

Fengxing's profit in 2006 was 4.8 billion yuan (US$615 million), and in the first quarter of 2007, it reached 1.6 billion yuan (US$200 million), and if calculated according to the average price-earnings ratio of the New York Stock Exchange of 20 times, Fengxing's valuation is only 16 billion US dollars, and even if some weighting is increased, the valuation is around 20 billion to 25 billion. Based on the issuance of 100 million ADS (1 share/ADS), the initial issue price per share given by the investment bank is $48.

But at this price, Lin Feng does not agree!

You know, in the previous life, when Alibaba was listed on the New York Stock Exchange, the price-earnings ratio reached 80 times!

At a time when the company is now highly sought after by global investors, it is obviously inappropriate to still use the conventional price-to-earnings ratio to estimate it, and the debt ratio of the company is extremely low, and the cash flow and cash reserves are very abundant.

You know, even if it is not listed, the valuation of Fengxing is now more than $10 billion!

Therefore, Lin Feng insisted that the initial pricing of Fengxing should not be lower than 40 times the price-to-earnings ratio, that is, the valuation of $32 billion, which is a more reasonable issue price.

However, investment banks believe that this price is too high, so that the issue price per share will reach $80, and few companies issue at such a high price!

The two sides argued, but Lin Feng's attitude was very resolute.

In the end, he even made the harsh word that if it was below this price, Fengxing would suspend the IPO......

In the end, the Rothschild side of the coordinating bank put forward a proposal to carry out a round of allotments, change the total share capital from the planned 400 million shares to 800 million shares, and increase the number of shares issued to 200 million shares, so that even at a valuation of $32 billion, the issue price would be around $40.

In fact, the investment bank also knows that with the popularity of the current popularity, the more reasonable price should be about 30 billion, but from the perspective of issuance, there will be a certain risk after all, so they hope to carry out the first round of inquiry at a relatively low price.

But Lin Feng's attitude made them understand that what Lin Feng needed was a high price!

Well, let's give it a try, the investment banking professionals shrugged.

They don't know that the reason why Lin Feng is going to list Fengxing in 07 is to make a lot of money before the financial crisis in 08, so he will not consider the long-term and investors' ideas for the time being, but get the highest price as much as possible!

Anyway, no matter how high or low the price is, investors will inevitably suffer huge losses in the financial crisis, and Lin Feng only hopes to get more cash to ensure that Fengxing can have enough ammunition to develop in the next few years.

In the end, after another round of expansion of the total share capital, the prospectus was re-supplemented to the SEC, and in the supplementary prospectus, the first round of inquiries was popular, and the issue price was $38!