"Based on this financial report, Bank of America Merrill Lynch can give Yimindai a valuation of 20 times its static price-to-earnings ratio."
Wang Zheng smiled and said: "Yimindai's net profit in the past year was 585 million yuan. According to today's exchange rate of 1 to 6.8575 yuan to the US dollar, it is 85.3 million US dollars.
A price-to-earnings ratio of 20 times is a valuation of $1.706 billion.”
Chen Shaojie showed a forced but polite smile and did not answer.
Are you kidding me? Yimindai was valued at 1.5 billion U.S. dollars a year ago, and the valuation increased by 200 million U.S. dollars in just one year?
Revenue and profit growth are more than this!
However, he did not open his mouth to refute and continued to listen to Yuan Zheng: "As far as I know, including the period of operation before Yimin Holdings Group was split, Yimin Dai only has a total operating history of three years!
"
"Yes, that's right." Chen Shaojie said with a confident smile, "A long history is not necessarily a capital to show off.
Yimindai took advantage of the explosion of the mobile Internet and achieved a hundreds-fold increase in loan size and revenue in three years, while maintaining healthy profits for three consecutive years.
The growth potential is very good, and the financial situation is also very healthy! This is a very high-quality and rare target in the Internet industry that has suffered continuous losses.”
Chen Shaojie emphasized the two phrases "high quality" and "rare" very strongly, just to remind these people that Yimindai has no shortage of fans.
"Mr. Chen," asked Robert from Goldman Sachs, "please tell me your psychological price!"
Chen Shaojie pointed at his fingers, "First, the price-to-earnings ratio is 30 times, and it is dynamic; second, this Pre-IPO financing only releases 10% of the shares; third, the listing underwriting commission is 5%."
Robert shrugged with an exaggerated expression, "What? Today isn't April Fools' Day, right?"
"Mr. Chen, are you serious?" Evans also emphasized.
"I'm not kidding. These requirements and conditions are very reasonable and leave generous profit margins for partners."
Wang Zheng shook his head and sneered: "I didn't see any profit margins. All the benefits were taken by the original shareholders and management."
Chen Shaojie did not argue and turned to look at Robert and Evans, "Goldman Sachs and Morgan Stanley have cooperated with our brother companies and have earned considerable returns through Pre-IPO and stock underwriting.
Bank of America Merrill Lynch is also a new partner that you two have brought in. Please explain, gentlemen!"
Robert spread his hands and looked confused, "The two investments of Yimin Net Financial and Yimin Wealth have indeed brought good returns to Goldman Sachs.
However, if one code is converted into one code, giving Yimindai a dynamic price-earnings ratio valuation of 30 times almost overdraws all the growth potential in the next one or two years.
After the listing, there will not be much profit that really belongs to us. For this reason, investors like us who bought shares at a high price will still bear a huge risk of loss.
The profits are thin and the risks are high. Even if I agree with such a bad decision, the New York headquarters will not approve this transaction.
We still have only 10% equity share from our three investment banks, plus..."
Robert attacked Wang Jingbo again, and said angrily: "Add Ms. Wang, there are four institutions, and it's not enough!"
Evans and Wang Zheng also spoke out one after another, refuting the "overlord clause" thrown out by Chen Shaojie point by point.
Wang Jingbo is as stable as a mountain, never arguing or arguing, only occasionally interjecting a few words.
Because she knows that although her company is also a company with a market value of tens of billions, compared with the three major investment banks, it is not a bit weaker.
If you are weak, you have no right to speak. I came here today just for fun.
After arguing for a long time, both parties finally took a step back and reached a preliminary agreement.
One of the three major investment banks made a concession on the underwriting commission and agreed to a 5% underwriting fee.
Yimindai made concessions on the share of equity financing and expanded the share of equity financing from 10% to 20%. Among them, the issuance of new shares and the transfer of old shares each accounted for half, 10% each.
As for the valuation, both parties will give in and set a static price-to-earnings ratio of 25 times.
According to this valuation method, Yimindai’s pre-money valuation is US$2.1 billion.
Chen Shaojie informed Zhang Yida of the negotiation results as soon as possible.
"2.1 billion US dollars~"
Zhang Yida repeatedly pondered that the valuation was technically a bit low, an increase of only 40% compared to the US$1.5 billion valuation a year ago.
However, valuation is not what he values most. What he values more is the transfer ratio of old shares.
This is the last round of financing before listing, and it is also a good opportunity to cash out, which must be grasped.
"Call Black Shirt, Zhenge, and Investment. Let's hold a meeting with the four shareholders of CITIC and ask them if they want to cash out."
Then, Yimindai held a general meeting of shareholders.
Xu Xiaoming suffered a loss once. On the eve of the listing of Yimin Net Gold, he liquidated all his shares at a valuation of US$2 billion. Now seeing that the market value of Yimin Net Gold has exceeded US$10 billion, I feel so uncomfortable!
So he won't cash out even if he kills himself, he has to wait until it goes public.
Shen Beipeng is also unwilling to sell his old shares. After Yimin Wangjin and Yimin Wealth were listed, their stock prices rose very well. So far, Blackshirt Capital has not sold a share.
However, as the market value of Yimin Wangjin exceeded US$10 billion, he could no longer sit still and felt that the time was almost ripe for cashing out.
However, Yimindai was different. He felt that selling it at a price of US$2.1 billion was too uneconomical and did not maximize returns.
It has been a year since CITIC Industrial Fund and China Merchants took shares in Yimindai. If they sell their shares now, they can securely obtain 40% of the investment income.
However, they have conducted an internal analysis and found that it is not the most appropriate time to sell shares.
Domestic Internet financial entrepreneurship is becoming more and more popular every day, precisely because of the vastness and unlimited prosperity of the market.
Therefore, the two of them also decided to wait.
"Um... no one is willing to sell their shares?"
Zhang Yida sighed, "Let's see, I'll be the one to sell out the 10% of the old shares!"
Xu Xiaoming felt a little sorry and advised: "Yida, why don't you wait and we can issue new shares for all 20% of the shares."
Zhang Yida waved his hand, "Forget it, it's about to go public, and it will dilute 20% of everyone's shares, and everyone's future earnings will be damaged."
Shen Beipeng glanced at Zhang Yida suspiciously, "Are you so kind?"
Is it once a coincidence, twice, three times or a coincidence?
Shen Beipeng discovered that Zhang Yida had to cash out part of his shares before each company went public. This was the case for Yimin Net Finance and the same for Yimin Wealth. There was also a wave of cashing out during the IPO.
Now that Yimindai is still copying this method, does it mean that it has no confidence in the future of the industry?
He originally sold 9% of Yimin Wangjin's shares for US$200 million. If the 9% of the shares were held to this day, they would be worth more than US$1 billion.
You have suffered such a heavy loss and still refuse to repent?
Yimindai completed nearly US$500 million in Series C financing at a pre-investment valuation of US$2.1 billion. It adopted a similar approach to Yimin Wangjin, first issuing an additional 10% of its shares and then transferring 10% of its old shares.
Yimin Loan Company received US$233.33 million in funding, and Zhang Yida personally also received the same amount of equity transfer funds.
His personal shareholding ratio in Yimindai dropped from 57.6% to 41.84%.
Bank of America Merrill Lynch, Goldman Sachs, and Morgan Stanley each paid US$140 million to obtain a 6% stake in Yimin Dai; Gopher Asset Management, owned by Wang Jingbo, paid US$46.66 million to obtain a 2% stake.
"Mr. Zhang, happy cooperation!"
After signing the agreement, Wang Jingbo shook hands with Zhang Yida with a smile on his face.
“A pleasure to work with!”
It was Zhang Yida's impromptu idea that Lagofi Asset entered the game. Unexpectedly, the other party really took a fancy to Yimin Dai.
Then, Zhang Yida went to talk to Robert and the others.
"Why are you thinking about investing in Yimin Loan?"
Shen Beipeng walked to Wang Jingbo and asked in a low voice.
Wang Jingbo turned his head and said with a smile: "The black shirts are so optimistic about Yimindai, so naturally we have to keep up with the trend!"
"Ha ha!"
Shen Beipeng said with a smile: "The general trend is that the wave of Internet financial entrepreneurship is getting higher and higher! Not counting Yimin Wealth, when Yimindai goes public, it will be the third Internet financial platform to be listed in China."
"Yes," Wang Jingbo nodded, "Mr. Zhang is a capable person. In addition to Yiyindai, the other two listed mutual financial companies are owned by him."
“The successive listings of Yimin Wangjin and Yiyindai have greatly stimulated domestic Internet financial entrepreneurs. Many companies have begun to arrange listing plans in the United States.
Next year, we expect to see a large number of domestic mutual financial companies go public."
Wang Jingbo nodded in agreement and said: "Yes, this is a big trend. As the first listed company in China, Yimin Internet Finance, no matter how many mutual financial companies are listed in the future, its status cannot be shaken.
It didn't cost a penny, but it got billions of dollars worth of advertising.
Now when talking about domestic P2P, the first thing that comes to everyone’s mind is always Yimin Wangjin.”
“Not only domestically, Yimin bank, a subsidiary of Yimin Wangjin, has gone beyond Indonesia and opened up markets in many countries in Southeast Asia.
In the future, it is very likely that it will become the P2P hegemon in Asia and even expand to other continents."
Wang Jingbo smiled and said: "Congratulations to Mr. Shen for investing in a company with unlimited potential."
Shen Beipeng added: "I heard that Gopher Asset's operations are not very good? Customers are complaining that the rate of return is very poor?"
"Yes," Wang Jingbo looked helpless, "There are only so many good companies in the world, and it is impossible to invest in good projects all the time."
"Yimin Wangjin has plans for additional issuance, is Gopher Asset interested in participating?"
Wang Jingbo was a little excited, but also worried. She frowned and said: "The market value now exceeds 10 billion US dollars. Is there any moisture?"
"Okay, the stock price is now $49, which has almost doubled from the issue price of $25.
The company's business fundamentals are very good, and its net profit has more than doubled compared with the same period last year. I think the stock price is still undervalued.
If you look at the ratings of various Wall Street investment banks, they either recommend buying or holding.
Don’t you always complain that you can’t find good projects? Yimin Wangjin is a potential stock.”
Wang Jingbo was a little moved, but she was not a novice. She said that when she returned to the company, she would find a professional researcher to study it and give her an answer at that time.
Shen Beipeng stopped at that point and didn't give any more advice.
Black Shirt Capital is going to get off the bus and sell directly on the open market, fearing that the stock price will be miserable.
Gopher Asset's investment in Yimindai allowed him to see that the former seemed to be quite interested in the mutual financial industry and was a suitable candidate.