Chapter 315 Planning in the City

Author: quiet thoughts

Chapter 315 Planning in the City

Hearing Hongchuan Kaede's answer, Watanabe Ichiro nodded. He took a piece of information from the lap of the assistant beside him and handed it to the former.

“The First Section of the Topix Securities requires at least 2,000 shareholders in the market and 20,000 outstanding shares.

The market value of the tradable shares is more than 2 billion yuan per month, and the proportion of tradable shares is more than 35%.

The total market value of the company is over 50 billion yuan per month, and the number of years of continuous operation is over 3 years.

The net assets are more than 2 billion yuan per month, and the total profit is more than 1 billion yuan per month in the past two fiscal years.

Of course, if the total profit cannot be reached, the total market value exceeds 100 billion yuan per month or the sales reaches 25 billion yuan per month.

There is no doubt that Hongchuan Electric meets all the conditions."

Then Hongchuanfeng wants Hongchuan Electric to be in place directly in one step, which is where the confidence of Topix 1 in the market lies.

Although even if TSE II is in the market now, it will be fine to switch to TSE I in the future.

However, the market liquidity of the Second Section of the Orient Securities is also relatively poor.

The stock market activity is low, which has a great impact on the market value of companies.

Especially for companies that are new to the market, it is almost impossible for stock prices to surge.

So as vested interests, Hongchuan Feng and the others' wealth growth is also limited.

But that situation does not exist in the First Section of the Tokyo Stock Exchange. After all, more than 96% of the total market value of all Neon's listed companies is there.

With such a large volume, there is no shortage of transactions.

In the impression of later generations, even though neon is one of the largest in the world, it seems that the stock market has never had a sense of existence.

This is indeed the case. In the 1920s after the turn of the millennium, many Neon people bought stock certificates that could be kept for 20 or 30 years.

This is almost equivalent to using stocks as a retirement product for financial management. If a confinement child can play the stock market like that, there will be no one else.

But in the final analysis, the long-term slump in stock market activity is not actually due to the sequelae of the bursting of the bubble.

It's only the early 1980s in Bu Nao, and we're at the beginning of the neon economy's boom.

Especially since the 1970s, the Ministry of Finance has encouraged companies to issue bonds, stocks and other securities and relaxed issuance standards.

This provides a policy basis for the active stock market, and the capital account also begins to gradually open up to the outside world.

The quota for foreign residents to exchange monthly yen will be relaxed, and the limit on the amount of neon securities purchased by foreign residents will be relaxed.

Implement the liberalization of foreign resident investment trusts and increase the number of general investors who can freely purchase foreign securities.

Those measures have greatly stimulated the prosperity of the capital market and stock market.

The landmark event in the liberalization of capital was in December 1980, when the government comprehensively revised the Foreign Exchange Law.

The law stipulates that the principle is to abolish foreign exchange controls and achieve free convertibility of capital accounts.

Stimulated by various policies, not only Neon citizens are keen on the stock market, but they have even attracted a lot of international capital to enter Neon's financial market.

Therefore, the current neon stock market has already begun to prosper.

In the current environment, Hongchuan Electric Co., Ltd. has no worries that no one is paying attention to its own stock.

Professional investors and professional investment institutions, when they see a new company on the market, are like sharks that smell blood and swarm in.

Needless to say, TSE Part 1 is the best choice for Hongchuan Electric in the market.

According to the information just submitted by Hongchuan Electric, regardless of whether it is the first bank or Nomura Securities, it is wrong that it was originally very confident in the market.

Because the size of Hongchuan Electric exceeds that of TSE 1, there is too much demand in the market.

Regarding the city's sector, everyone present had no objections, and Ichiro Watanabe once again confirmed the details of Toichi.

"So do you have any ideas about the shareholders of the tradable shares? What is the specific share ratio?"

"About 35%." Yu Arai gave the answer without much thought.

This is the minimum circulating share required by the First Section of the Topix, and no more. No matter how much Hongchuan Holdings is, Hongchuan Electric Holdings will never be able to win.

If it is not the 25% of the Second Section of the Tokyo Stock Exchange, then Hongchuan Kaede will definitely choose the lowest share.

As for his answer, First Bank and Nomura Securities were not surprised either.

This is the choice of most new companies on the market, and it is not necessary to retain absolute controlling rights at this time.

Only by maintaining its own operational independence can a young club consolidate its foundation and continue to develop.

"If it's not 35%," Ichiro Watanabe took out his pen to write, "Hongchuan Holdings holds 77%*(1-35%)=50.05% of the shares.

In the same way, First Financial Bank was diluted to 6.5%, Nomura Securities was diluted to 5.2%, and Beidu Bank was diluted to 3.25%.”

That number is wonderful. Watanabe Ichiro looked at the data on the paper and raised his eyebrows.

It seems that Hongchuan Holdings only owns 50.05% of the shares, which is far from the 51% of Juecuo Holdings.

But don’t forget who belongs to Beidu Bank. If you need it, it’s 50.05% + 3.25%, which means it’s 53%.

Although the method has been changed, it still remains the same.

Presumably, that's not Arai-san's legwork. The purpose of doing that is to deceive others.

At the same time, it can greatly stimulate the development of Beidu Bank. It seems that Hongchuan Sangcuo had high hopes for Beidu Bank and did not forget to give it a hand at that time.

Although he was muttering in his heart, Ichiro Watanabe's calculation pen did not stop.

"The equity capital is 586.5 billion yuan, and 35% of it is 205.2 billion yuan."

Ichiro Watanabe put down his pen, his eyes filled with money flashing.

There is no doubt that this is a huge sum of money, much more than the funds they required to acquire Hongchuan Electric's shares.

However, the financing funds cannot be used casually. It will be used for the future development of Hongchuan Electric.

But in the coal industry, the first question is whether there are any ways to use them to make money.

"The circulating market value of 205.2 billion is not a huge financing plan, so the value of each plant it corresponds to should be carefully considered.

Based on past experience and the performance of similar companies in the stock market, they suggest that the stock price of each plant should be above 1,000 yuan."

Soon, based on the circulating market value, Watanabe Ichiro immediately gave a recommendation on single-share pricing.

Whether the pricing is determined based on the error ratio method, at this time, the value of a single share of Sony is about 1,500 yuan.

The price of a single share of Sushi is around 1,600 yuan, and the share prices of other companies such as Sanyo and Pioneer are also around 1,200~1,300 yuan.

The stock prices of companies that are highly similar to Hongchuan Electric's business, and their individual unit pricing can serve as a reference for Hongchuan Electric.

As a new company on the market, Hongchuan Electric should be lower than them, as this will help attract investors to invest and activate the stock market.

As for the pricing of other similar companies, some are not for reference.

Take Nintendo for example. Its current stock price is 149 yuan.

A proper shame for the electronics industry, with absolutely no reference value.

Is this the reason why Hongchuan Electric did not refer to it in its previous valuation? In the final analysis, it is not because its huge debt has dragged down its market value.

There are low stocks and high stocks, such as Sharp and Fujitsu, whose single share prices are as high as more than 10,000 yuan per stock.

Why? Because Neon is undergoing a home appliance revolution at this time, with larger TVs, more advanced refrigerators, air conditioners, etc. all being upgraded.

Sharp and Fujitsu, which mainly focus on the home appliance business, have seen the most obvious business growth.

From the 1970s to the 1980s, the market value of those two companies increased five or six times in 10 years, which is higher than the current market value of Sony and Sony.

Whether the market value after the market can double, or whether the initial valuation can double, shows how aggressive their business expansion is.

Although Sony also has a home appliance business, its main business is televisions.

Refrigerators, washing machines, and air conditioners all depend on Sharp and Fujitsu.

Because their stock prices are too low for investment, it is not of any reference to Hongchuan Electric.

Around 1,000 yuan is the most suitable range for Hongchuan Electric’s new issue price.

Going against the advice of the first banker, Hongchuan Kaede lowered his head and communicated with Yu Arai and agreed to such a price.

The wrong party is neither a professional institution nor the shareholders of Hongchuan Electric Co., Ltd. Hongchuan Feng believes in their judgment.

Seeing that Hongkawa Kaede and the others had no objection, Watanabe Ichiro began to calculate again.

"If we use 1,000 yuan as the dividing line to stimulate investors' investment enthusiasm, the issue price can be slightly lower.

If it is not 700 yuan per plant, then the circulating market value of 205.2 billion will equate to 293 million stocks."

Yes, Ichiro Watanabe put his pen down and nodded with satisfaction. The stock price is reasonable, and the number of stocks issued is also reasonable.

If the price is set too high, it is easy to break the stock. If the price is set too low, it is easy for investors to mistakenly think that Hongchuan Electric has no confidence in its own business.

700 is not a very appropriate number. I believe that after they see the financial report released by Hongchuan Electric, they will be severely tempted by such pricing.

As the saying goes, action is worse than heartbeat. If there is action, there will be transactions. Then won’t the stock market become more active?
To be continued...