After the end of the technology exhibition, Fang Bai prepared for the listing of Hualian Supermarket Company in Hong Kong City.

There are significant differences between domestic listings and Hong Kong City listings in terms of regulatory authorities, listing standards, capital market investors, liquidity, financial report disclosure, legal system, cross-border trading mechanism, price-to-earnings ratio and funds raised, tax costs, etc.

Companies listed on the mainland A-share market need to meet the requirements of "three years of continuous profit, two years of continuous dividends, and a net profit of 30 million yuan in the last year" if they want to be listed on the main board after more than ten years.

At present, the requirements for net profit are much lower, and in this year, it is too scary for the net profit to reach 30 million yuan.

Anyway, in this year, there are quite a lot of rules for listing, but it is not so easy to be listed, Fang Bai doesn't want to toss at all, it's too troublesome.

Moreover, it is still a stock market crash period.

From February 1993 to July 1994, the Shanghai Composite Index fell from 1,553 points to 325 points, which lasted 18 months, with a maximum decline of 79%!

In the final analysis, the domestic stock market is still relatively chaotic.

Fang Bai didn't want to throw the blue chip of Hualian Supermarket into the whirlpool.

In the Hong Kong City market, companies are required to meet the basic conditions for listing, such as having a stable business model, stable financial performance, and a good governance structure, and can only be listed after passing the review committee.

At present, the situation of Hualian Supermarket also meets the requirements for listing on the Hong Kong stock market.

In terms of capital market investors, the mainland A-share market is dominated by institutional investors and retail investors, with institutional investors dominating.

The port city market, on the other hand, is more focused on attracting international capital, so the proportion of institutional investors and foreign investors is higher, and there are relatively few retail investors.

Not to mention anything else, with the situation in this era, it is extremely difficult for domestic retail investors to buy stocks in Hong Kong City, and it is very difficult to open an account alone.

More than ten years later, although it is a little troublesome, the account opening operation is quite easy.

Fang Bai remembered that in 2010, a certain bank invited to open an account for Hong Kong stock trading, and after the account was opened, it was directly sent to the mailbox for acceptance, and the funds were transferred to a certain bank first, and then a certain bank was settled through a branch in Hong Kong City.

At that time, buying Hong Kong stocks was through entrustment, which was not as convenient as when there was an APP later.

In terms of price-earnings ratio and funds raised, the price-earnings ratio of the mainland stock market is on the high side, and the amount of funds raised at one time is large;

The price-to-earnings ratio of the Hong Kong City stock market is in line with the international prevailing level, and the amount of funds raised is more, but less than that of the mainland.

The calculation method of the P/E ratio is slightly different, mainly the profit growth rate of the past three years and the estimated next three years, and then the PE of listed companies in the same industry is evaluated.

In terms of tax costs, the tax system of Hong Kong City is simple and the tax rate is low, so the tax cost is relatively less than that of mainland listing.

In general, it cannot be said that the listing of Hong Kong City is necessarily good, but to see whether it is suitable, and the ultimate goal is to ensure the success of the listing.

Hualian Supermarket's influence in China is indeed not very good, but it is backed by Fang Bai.

If it is listed in China, domestic retail investors may not recognize Hualian Supermarket, and it will suffer more in the domestic listing where retail investors occupy a large position.

In Hong Kong City, the proportion of institutional investors and foreign investors is relatively high, and it depends more on the situation of major shareholders.

Therefore, Fang Bai first operated, using his own network resources, and invited Wall Street institutions to come to China for Series A and B financing, so that Hualian Supermarket can bring some international ingredients, in fact, it is a coat to make the investment institutions in Hong Kong City value Hualian Supermarket.

When the time is almost right, then you can prepare for the IPO.

As for the angel round, there is no need, Fang Bai invested 300,000 yuan that year, in fact, what is the difference with the angel round.

After multiple rounds of financing, rather than a one-time investment, it is actually a time lag, and the company has time to develop and make the company's value rise higher.

Two days later,

Fang Bai appeared on the campus of Jiaotong University.

He hasn't been to school since the beginning of the school year, and there are so many things.

I visited the leaders of the school and the school, and then met with the students who were off duty.

At the end of last semester, the number of Hualian supermarkets in business reached 80, and there are now 90, which is almost the same as the 100 established by Fang Bai.

Fang Bai said that when 100 stores are completed and normal operation is guaranteed, he will reward each student with 0.6% of the original shares, and 0.2% has been awarded so far, and these shares, before the B round of financing, will not be diluted.

His arrival was warmly welcomed by his classmates, as if there was endless words.

Fang Bai looked at the classmates gathered around him, everyone was smiling and grinning, and he was also happy for them, and said: "After a while, I will invite international investment institutions to inspect Hualian Supermarket in depth, and are actively preparing for the A round of financing, and strive to be listed in Hong Kong City this year, everyone work hard." ”

Fang Bai's words, the classroom fell silent instantly, and the students were stunned by this sudden news and fell into shock.

Hualian Supermarket wants financing?

Ready to go public?

Soon, everyone began to gradually recover from the shock, and their faces were full of surprise and excitement.

"Squad leader, do you need us to prepare for anything?"

For a long time, since Fang Bai said that he was going to prepare for listing, everyone went to understand the relevant things of listing, and there were many internal discussions.

Therefore, they are not novices, and they still understand something.

Fang Bai said lightly: "The store is operating normally, the finances must be clear, let the managers prepare, and spend money to ask the accounting firm to help sort it out." ”

A classmate asked curiously, "Boss, what is the valuation?" ”

"Valuation will be affected by a variety of factors, such as the supermarket's geographical location, market position, brand influence, business model, founder, etc.

Hualian Supermarket is on campus, one is the only one, and there will be at most one competitor in the future, and the market price is high.

In addition, the valuation also needs to consider the future growth and profitability of the supermarket, and if the supermarket has good growth and stable profitability, then its valuation may be higher.

The annual profit growth rate has a very big impact, if you lose money year after year, it is not expected to be profitable in the next few years, that is only calculated according to net assets, one or two times.

If it is profitable year after year, the annual profit growth rate in the past and the next three years is about 20%, and the PE is about 20 times, which may also be overestimated.

In the past three years and the estimated growth rate in the next three years, the growth rate is more than 30%, and the PE is mostly high, but generally not more than 50. ”

"Ouch, boss, we don't understand these theories, just say about a valuation, so that everyone can open their eyes and be happy." Wang Yifei sounded a little confused, it is estimated that many classmates are like this, so they simply don't forget it.

His words made the whole class laugh, and they also wanted to know the specific value.

Fang Bai groaned, last year, Hualian Supermarket Company's total turnover was about 100 million yuan, gross profit was about 35 million yuan, and after-tax profit reached 30 million yuan.

The A round of financing will not be until April or May, and by that time, the number of stores in operation can reach 95, and in the past 12 months, the after-tax profit may be about 40 million yuan.

According to the high profit margin and annual profit growth of Hualian Supermarket, the PE value is larger.

In fact, what Fang Bai didn't say was that his personal influence was very large, mainly what he was doing to make money, even if the company was start-up, it didn't make a profit for a penny, and the company was worth at least 500 million.

Hualian Supermarket is in a special situation, in the past three years, the annual profit growth has been more than 100%.

This year, the after-tax profit may reach 60 million yuan, and next year it will definitely exceed 100 million, and the annual profit growth will still exceed 100%;

Fang Bai expects that when the number of stores reaches 400, the profit growth of supermarkets will decrease, but then it will start to operate Internet cafes.

Therefore, after three years, the annual profit may reach more than 200 million yuan, and with the investment in Internet cafes, the profit growth rate of Hualian Supermarket Company will continue to grow.

Fang Bai's valuation of 1.5 billion yuan to 2 billion yuan is more reasonable.

Investors value post-IPO growth rather than profit dividends.

If you rely on profit dividends to return investment costs, it will take many years.

So he said: "If it develops to 100 stores, the pre-investment valuation of the A round will be between 1.5 billion yuan and 2 billion yuan, and your shares will not be diluted before the B round of financing."

Hualian Supermarket should develop to the goal I set, and I will distribute the shares again as promised, and everyone will receive a total of 0.6% of the shares! ”

The problem of share dilution is easy to solve, and in the final analysis, it is still compensated from the shares on hand of Fang Bai. The final proportion of shares that investors want, and how Fang Bai compensates, has little to do with them.

"Wow, oh my God, more than 1.5 billion yuan!"

The students couldn't help but be shocked and began to calculate how much their shares were worth.

If the valuation is 1.5 billion yuan, then,

0.2% = 3 million yuan!

Are they millionaires all at once?

If you continue to reward it, it will be 9 million yuan?!

Nearly multi-millionaire!

Fang Bai chatted for a while and left, but after he left, the students of the third class of mechanical machinery couldn't suppress the ecstasy in their hearts.

It didn't take long for other students in the Institute of Mechanical and Electrical Engineering to find out, and soon spread to other departments, and they were all shocked.

Hualian Supermarket Company is preparing to be listed on the Hong Kong stock market!

The students of the third class of mechanical machinery are nearly multimillionaires.

When it's time to go public, you can cash out, and that's a veritable multi-millionaire.

Overnight, the students of the third class of mechanical machinery became fragrant and sweet.

Qin Xue, the counselor of the third class of machinery, felt a little lost when she heard the news, and she refused when Fang Bai asked her to participate together.

It's just that because of her status as a counselor, I'm embarrassed to mix with students.

If you say, as long as you are thick-skinned at the beginning, the trajectory of your future life will be really different.

But just think about it, it's not your own, it's useless to be greedy, it was Fang Bai who gave her face at the beginning, and for the sake of her identity, maybe it was just a joke.

Just two days later, the students of various colleges and universities in Shencheng knew about this situation, and they were shocked and envious.

The local media learned the news and conducted interviews and reports, saying that Hualian Supermarket Company was preparing for a round of financing and preparing for the listing of Hong Kong stocks.

And some peers, as well as some senior executives of listed companies, feel that Fang Bai is a bit bragging, maybe it can be worth so much money, the problem is that it can bring in institutional financing and be able to go public.

If you can't go public and cash out, it's useless. (End of chapter)