Generally speaking, a capital increase by a major shareholder is a very depressing thing for minority shareholders. Pen | fun | pavilion www. ｂｉｑｕｇｅ。 ｉｎｆｏ

If it does not follow the capital increase, it will be diluted equity, and if it follows the capital increase and continues to increase capital investment, it can only maintain the same equity share.

At this point, Lin Feng's purpose of putting Menglong on the market as early as possible is also clear to everyone.

He just hopes to use the funds cashed out by Menglong's listing to ensure his equity share in Fengxing Company!

…………

Generally, if an Internet company wants to develop rapidly, it will carry out multiple rounds of financing to obtain sufficient funds.

In Lin Feng's previous life, the three giants of Internet BAT were all like this.

Baidu raised $1.2 million in its first round in February 2000, a second in September with $10 million from DFJ and IDG, and $15 million in 2004 from eight venture capitalists, including Google.

When Baidu went public, Robin Li held only 22.9% of the shares.

Tencent, in 2000, received $1.1 million in financing from IDG and Yingke, just in time for the dot-com bubble, and then after MIH took over the shares of these two companies, the management sold part of the shares to MIH, and when it went public, the management and MIH each held 50%.

After Tencent's listing, Ma Huateng's shareholding was only 14.43%.

Ali is even more exaggerated.

Its financing history is definitely a strange one among Chinese Internet companies. So far, there are still a number of financing records to be broken:

The financing time span is the longest. It lasted for 15 years, and the largest amount of financing. Since 1999, Alibaba has raised $7.55 billion.

There are many VC/PE institutions involved. More than 20 VC/PE institutions have participated in Alibaba's financing.

In 1999, Alibaba received its first round of investment of US$5 million, led by Goldman Sachs, and joined forces with investment institutions in the United States, Asia and Europe, including Transpac Capital in Singapore, Investor AB in Sweden and the Government of Singapore Technology Development Fund.

In 2000, Jack Ma introduced a second round of $25 million for Alibaba, led by SoftBank with $20 million, and Fidelity, Huiya Capital, TDF, Investor AB, and Japan Asia Investment Corporation followed with $5 million.

In 2004, Alibaba raised $82 million in its third round of financing, which became the largest amount of money raised in the history of China's Internet at that time. SoftBank led the $60 million investment, with the remaining $22 million being funded by Fidelity, TDF and GGV.

By 2005, Yahoo had taken a stake in Alibaba, and VC/PE funds began to exit on a large scale. At that time, Yahoo offered $1 billion in cash, all of Yahoo's China business, and access to the Yahoo brand and technology in China for a 40 percent stake in Alibaba Group and 35 percent of the voting rights.

In 2007, Alibaba's B2B business was listed in Hong Kong, which was the first cash-out for the early investors and management.

By 2014, Alibaba was listed on the New York Stock Exchange again, which went through two rounds of PE financing.

After the listing, Jack Ma held only 7.8% of the shares.

…………

Therefore, some people on the Internet have been complaining that BAT is actually working for foreign capital. That's not wrong.

Although from the perspective of company control, the three of them still firmly control the company, but in fact, because of the bottom shareholding ratio, they must be constrained by major shareholders.

Ali and Yahoo have been in love with each other for many years, and this is a clear example.

As a lesson from the past, Lin Feng can't help but be vigilant.

Therefore, for Fengxing, from the very beginning, his plan was to use Menglong's listing to cash out funds, minimize the number and scale of financing, and ensure that his shareholding ratio is always in the absolute majority.

With this strategy, in addition to Menglong's listing, out of recognition of Xu Xin, Fengxing accepted a $15 million investment from Baring Private Equity Asia and IDG, sold 15% of the equity, and quickly used the money to start the online game project in advance, and then relied on the capital increase after Menglong's listing to carry out strategic development layout.

Now into 2004, with Shanda in early May has been successfully listed, followed by June 16 Tencent will also be listed in Hong Kong, Baidu will also be listed next year, the war will become more and more intense, in this case, Lin Feng cashed out again, to increase the capital of Fengxing, it is imperative.

Because later, out of consideration of the capital market and the needs of business development, Fengxing had to accept some PE financing, even if it was not as terrifying as Alibaba, but it must also attract domestic and foreign industrial and capital allies by introducing some strategic investors.

The capital increase in the early stage will expand the valuation and business of Fengxing, and it can also better ensure the interests of Lin Feng itself in the subsequent financing.

Prevailing Board Meetings.

Xu Xin stroked his head: "OK, Lin Dong, what is the amount of capital increase you plan to increase this time?" Since she understood Lin Feng's thinking, she knew that the capital increase was inevitable.

Lin Feng smiled: "This time I plan to increase the capital by 120 million US dollars, if you are interested, you can increase the capital proportionally." ”。

Guo Yihong wailed in his heart, sure enough!

After this guy cashed out, it was for the sake of increasing capital, and this time he was merciful, and no 200 million was invested. 80 million were left.

He didn't know that Lin Feng left the $80 million because he wanted to invest in his father's real estate company.

Each person began to calculate their share.

Lin Feng currently holds 58.75% of the shares of Fengxing, and he increased his capital by 120 million US dollars, that is, Baring Asia, which holds 10% of the shares, will increase its capital by 20.4 million US dollars, Wang Hao and Li Dong, who hold 8.5% of the shares, will each increase its capital by 17.34 million US dollars, IDGVC, which holds 5% of the shares, needs to increase its capital by 10.2 million US dollars, and Ye Weiyu, who holds 4.25% of the shares, will increase its capital by 8.67 million US dollars. 5% of the option pool requires $10.2 million, which is a pro-rata capital increase by all shareholders.

This is not a small amount.

Baring Private Equity Asia, despite its money, is subject to the review of the Investment Committee.

IDGVC knelt down directly .......

As a VC that only focuses on early-stage investment, it will not follow the investment in the case of Fengxing's internal capital increase, which is almost equivalent to entering the C round of financing.

As soon as Guo Yihong heard Lin Feng say the amount of capital increase, he knew that IDG was going to be diluted this round.

He now has two options, requiring major shareholders to audit the company's net assets, determine the company's true valuation, and then transfer the equity to make a profit and leave the market, or continue to hold the shares of Fengxing, but it will be diluted.

Xu Xin is thinking about the longer term, from the perspective of Lin Feng's current operating methods, he attaches great importance to Fengxing shares, and it is not ruled out that he will continue to increase capital in the future, Baring Asia, as an investment company, there is no need to continue to invest money in order to maintain a certain proportion of shares. After all, the company is not only popular for this investment project.

A short recess was held to facilitate discussions between the two bodies.

Both Baring Private Equity Asia and IDGVC have said that they will no longer participate in this round of capital increase!

Lin Feng understood this.

The 15% share of the capital increase held by the two institutions will be distributed by the other shareholders on a pro rata basis.

Finally, after a series of calculations, Fengxing Online completed the second internal capital increase and share expansion initiated by the major shareholder Lin Feng.

After this round of capital increase, the shareholding of Fengxing's shareholders has been changed to:

Lin Feng increased his capital by US$130.4 million in this round, with a shareholding ratio of 63.84%, Wang Hao and Li Dong increased their capital by US$27.54 million respectively, each holding 11.35% of the shares, Baring Private Equity Asia and IDGVC were partially diluted to 4.44% and 2.2% because they did not participate in this round of capital increase, and Ye Weiyu increased their capital by US$8.67 million, holding 4.25% of the shares unchanged.

After this round of capital increase, in addition to Lin Feng himself, the shareholding ratio of Wang Hao and Li Dong has increased significantly, and it can also be seen that the iron triangle combination in Fengxing Company has also been formed.

Fengxing's cash holdings increased by nearly $200 million again, almost as much as it could have raised in an IPO.

At this point, Lin Feng had prepared enough ammunition and food for Fengxing.

The big war is about to begin!