Dividing Benefits

Author: quiet thoughts

Dividing Benefits

Hongchuan Electric Co., Ltd. is valued at 586.5 billion yuan per month and has issued 35% of its outstanding shares. Calculating the number of shares in Donglaibo, it is 290 million.

How to put those 290 million stocks into the market and in what form is a complicated knowledge.

As a listed company, Hongchuan Electric will of course not directly participate in the issuance of stocks. Its responsibility is to convert its assets or products into tradable virtual stocks.

Those stocks are a quantitative reflection of the value of the enterprise and can be purchased and traded freely by the outside public.

Hongchuan Electric's newly listed stocks are generally invested in the primary market or secondary market through intermediaries.

Those intermediaries are similar to trading windows, or sales roles such as wholesalers and brokers.

At this time, the first banks walking in the conference room, Nomura Securities and Beidu Bank, had played such a role.

As underwriters of stocks and bonds, they are responsible for putting Hongchuan Electric's stocks into the trading market through various methods.

There are generally two ways for underwriters to issue stocks.

Underwriting issuance method, and consignment issuance method.

Underwritten issuance, as the name suggests, means that a securities firm acquires all or part of the newly issued stocks of a listed company at one time and advances all capital equivalent to the stock issuance price.

The securities firm then sells the stocks packaged to the buyer on the trading market.

Of course, the stock prices purchased by the underwriters from listed companies will be traded at the lowest issuance price, or even at a more favorable price.

When the underwriters turn around and sell those stocks to the primary and secondary markets, the prices will be determined by themselves.

That is equivalent to making a profit by buying at a low price and selling at a high price.

This type of underwriting issuance method is generally used by small and medium-sized technology companies that are new to the market.

Most of those companies are in urgent need of funds, so when faced with a one-time payment from underwriters, they are more willing to package the stocks to them and leave the market with their own money.

Most of the underwriters that can carry out stock issuance business are well-funded, and companies that are optimistic about them are more willing to use underwriting to issue stocks.

Of course, if the number of shares issued by a newly listed company is too large, it can also be jointly underwritten by several securities firms.

Another way to issue stocks, consignment issuance is the opposite of underwriting issuance.

Whether the subject of the agency sale is the company itself, the underwriter will perform the sales on its behalf.

Whether the income from stock issuance is earned by a listed company has nothing to do with the underwriter.

As an intermediate role, they will get a leg renewal fee or a very low commission.

Regardless of whether the issuance is underwritten or not, there are advantages and disadvantages to each.

Underwritten issuance can raise the required working capital for listed companies in a very short period of time, but it is not a one-time transaction, and subsequent stock returns have nothing to do with it.

The advantage of an agency issuance is that the overall value of the stock will be higher than the company's initial issue price, and more funds can be raised.

But the disadvantage is that the cycle will be relatively long, and there are certain risks.

If the company is not favored and loses its IPO in the market, the financing received from the issuance of shares will be greatly reduced.

In short, the specific issuance method needs to be determined according to the situation of the enterprise, and whether it is a two-way consideration between the listed enterprise and the underwriter.

As for Hongchuan Electric's stock, to be honest, First Bank wished it could buy it all at once.

Because he knows that the stock price of Hongchuan Electric will definitely not reach 700 yuan.

Not to mention its strong profitability, the future development plan just distributed by the wrong party is a fragrant and sweet pie.

Regardless of whether that piece of pie can be eaten, most investment institutions will just do that.

Just take that financial statement and the future plan and start talking about it. I believe you won't have to worry about selling those stocks.

However, Ichiro Watanabe glanced at Takashi Yanagiya, who was also looking fiercely, and Yu Arai, who was about to leave, and he gave up his plan to swallow up Tohongkawa Electric's shares.

Everyone is not a fool. We just spent tens of billions, so why don’t we just reject it at that moment?

"Ahem~" Ichiro Watanabe cleared his throat, "Does Benikawa-san have any thoughts about Hongkawa Electric's stock underwriting?

I just read the plan drafted by Ge Dong, and it seems that future research investment will require a large amount of funds.

How about it? Do you want to consider Yidong’s underwritten issuance method?

If they are responsible for the underwriting, Hongchuan Electric can obtain 205.2 billion yuan in financing at one time.

With that help, many projects can be started immediately, researched and developed one month earlier, and results produced one month earlier."

After saying this, Ichiro Watanabe looked at Hongkawa Kaede eagerly, his naked eyes always tempting the other party to agree to such conditions.

It's a beautiful thought. If you can teach me some lessons in that area, Hongchuan Feng might be really moved.

After all, with a one-time investment of 205.2 billion, many projects in my mind can be realized.

But not now. Hongchuan Feng smiled politely.

"What Watanabe-san said does make some sense. At present, Hongchuan Electric does not have much financial pressure.

Regarding the specific distribution method, why don’t we all discuss it together and find the optimal solution?”

After hearing Hongchuan Kaede's answer, Watanabe Ichiro sighed silently in his heart.

Sure enough, it's not that easy, even if you think about it. With that guy Arai here, it's not like he's a small stock market star.

"In this case, everyone might as well share their thoughts and the number of shares they can underwrite."

How about Bulong? The number of stocks close to 300 million can be issued through the three of them.

Regardless of whether the issuance is underwritten or not, the three underwriters will make money, the only difference is whether they make more or less.

Hongchuan Feng did not participate much in the discussion that came to Donglai.

Oh, don't say discussion, maybe quarrel is more appropriate.

If stock underwriting is wrong for them, then there will be no distribution of benefits.

How can you give in so easily when it is a matter of personal gain? Everyone is so angry that they are blushing and their necks are thick. This is not very polite.

The tens of billions that Hongchuan Electric invested in previously were not recovered in a short period of time.

But regardless of the immediate income from stock underwriting, if it is done well, it can easily reach tens of billions.

That's equivalent to the tens of billions of shares previously invested, which can be recovered in an instant. Is it a net profit for Shandong's shares in Hongchuan Electric?

In the face of such huge profits, no matter how well-trained you are, you can't succeed.

Whoever has a louder voice has more momentum. With his hair and beard spread out, he seems to be looking for a fight.

Hongchuan Feng walked beside them, and they all had a headache from the noise.

Especially in quarrels, the many professional terms mixed in are very confusing.

The most difficult thing among them is Yu Arai, who strives to fight for the interests of Hongchuan Electric while also fighting for the interests of Hokuto Bank.

From the perspective of stock issuance, Hongchuan Electric and Beidu Bank are on the wrong side.

Occasionally, Ichiro Watanabe and Takashi Yanagiya would ask him unceremoniously which side I was on.

Faced with their menacing looks, Arai Yu almost lost consciousness.

At first, it was true that Hong Chuanfeng couldn't bear the quarrel between them at the vegetable market, so she acted as a go-between to make both parties take a step back.

As for whether to appease them, Hongchuan Electric's shares also chose a mixed issuance method of underwriting and consignment for apportionment.

Although Hong Chuanfeng also knows whether his stock will rise, he still has to pay attention to the profit of the share.

As the saying goes, eating alone is not enough.

Hongchuan Electric has successfully entered the market and its shares can be sold. In fact, it has achieved its goal.

As for the middleman's price difference, he didn't want to hold on to it, as that would not defeat Hongchuan Electric's goal.

After all, stock underwriting is not a financial game, not an industry that he is good at.

Initially, with Hongchuanfeng's nod of approval, 70% of Hongchuanfeng Electric's outstanding shares would be issued through underwriting, and the remaining 30% would be sold on a consignment basis.

As for the 70% underwriting share, First Bank will get 40%, Nomura Securities will get 20%, and Beidu Bank will get the final 10%.

After all, First Bank was not Hongchuan Electric’s main push in the market, and it was also the first financial institution to establish a relationship with Hongchuan Electric.

Not to mention the current shareholding ratio, just because a lot of things have been settled for Hongchuan Electric, it deserves the big share.

As the largest securities firm in Neon, there is no other largest securities firm.

Nomura Securities deserves a 20% share. They have a unique advantage in stock distribution channels.

In addition, they also solved many personal problems for Hong Chuan Kaede. All of Hong Chuan Kaede's more than ten properties in Tokyo were acquired through their introduction.

Those properties are not ordinary apartments, but super luxury houses belonging to another class.

Retro, Western, modern, all kinds of styles are available. And the designs are basically from the hands of famous designers, and most of them are cheap but not marketable.

As for Beidu Bank's 10% share from Chengdong, to be honest, it was totally based on Hongchuan Feng's reputation.

Otherwise, compared to First Bank and Nomura Securities, Beidou Bank would not be qualified to be there.
To be continued...