On September 20, Magnesium Tuan-Dianping was officially listed on the Hong Kong Stock Exchange.
The issue price was HK$69 per share, and the opening price was HK$72.9 per share, an increase of 5.6% from the issue price. A total of 480 million shares were issued, with a market value of approximately US$48.3 billion.
Zhang Yida stood in the audience, looking at Huang Xin, Wang Huiwen and others enjoying the cheers on the stage.
Magnesium Group is very interesting. They also chose a delivery boy named Qiu Xuexue to ring the bell on behalf of the nearly 600,000 delivery riders of Magnesium Group.
Zhang Yida was thinking about which representatives Ruixiang would invite to go public, including Pinduoduo farmer sellers, DouVi content creators, and mobile payment contract merchants...
Just when Zhang Yida was there applauding to celebrate the successful listing of Magnesium Group.
Bald Bao Fan led a group of people over, led by an imposing middle-aged man in a suit.
Zhang Yida recognized who this was at a glance - Li Xiaojia, CEO of the Hong Kong Stock Exchange.
This is also the first non-Hong Kong native in the history of the Hong Kong Exchange to be the leader with a mainland background.
Zhang Yida was a little surprised, why did this person come here?
After Li Xiaojia and his party sent blessings to the management team of Magnesium Group led by Huang Xin, they exchanged a few words and walked directly towards Zhang Yida.
Li Xiaojia extended his right hand, "Hello, Mr. Zhang, I am Li Xiaojia!"
Zhang Yida shook hands with him and said, "Mr. Li, nice to meet you!"
Li Xiaojia glanced at the noisy bell-ringing scene, which was full of various media, reporters, and financial people.
He smiled and said, "Mr. Zhang, it's inconvenient for us to have a few words."
"OK!"
Zhang Yida readily agreed.
In a VIP room of the Hong Kong Stock Exchange, Li Xiaojia and Zhang Yida were drinking tea and chatting.
"It's been five years since Ruixiang was established, right?"
Zhang Yida nodded, "Strictly speaking, there is still one month left."
Li Xiaojia pursed his lips and sighed after a while, "59 months, a valuation of HK$1.6 trillion, it's really not easy!
I am also very proud to see so many outstanding technology companies emerging in our motherland!"
Zhang Yida has basically guessed Li Xiaojia's intention, especially the "Hong Kong dollar" unit was used very cleverly.
However, he is the kind of person who doesn't give in to the rabbit before he sees the rabbit. He won't easily agree to list on the Hong Kong Stock Exchange without getting some benefits.
“Now that the sweater war has started, Americans are becoming more and more wary of Chinese technology companies.
Ahli and the others all have the idea of secondary listing on the Hong Kong Stock Exchange. It can be seen that it is better to be more practical in their own place."
Zhang Yida smiled and said: "The Hong Kong Stock Exchange is still too conservative when it comes to new economy companies, like our e-commerce company Pinduoduo, which is still suffering serious losses.
If it is listed on the Hong Kong Stock Exchange, it may be difficult to obtain the desired market value."
Li Xiaojia shook his head and did not agree with Zhang Yida's statement.
"Penguin's PE is much higher than Ahri, and the New York Stock Exchange is not necessarily better than the Hong Kong Stock Exchange."
Zhang Yida admitted that in emerging industries such as information technology, the PE multiple given by the Hong Kong Stock Exchange is no lower than that of the New York Stock Exchange.
In addition, the cost of listing in Hong Kong is also lower, including initial listing fees, intermediary fees, and annual fees, which are much lower than those on the New York Stock Exchange.
There are also shortcomings, mainly: the capital market is small in scale, the short-term profitability requirements are high, the overall valuation level is low, the IPO financing ability is weak, and the ability to enhance international visibility is weak.
"Mr. Li, I understand everything you said and I will consider it carefully."
Seeing that Zhang Yida seemed to be leaving, Li Xiaojia became a little anxious.
The Hong Kong Stock Exchange is also a company, and it also needs Ruixiang, a large-scale IPO that is rare in the world, to enhance its reputation.
No matter what, we must try our best to get Ruixiang listed on the Hong Kong Stock Exchange.
Thinking of this, Li Xiaojia decided to show his sincerity.
"If Ruixiang chooses to list on the Hong Kong Stock Exchange, I will apply to the company to have all listing fees halved."
Zhang Yida is quite satisfied with Li Xiaojia's attitude, and he doesn't even care if the fee is halved.
What I care about is the importance the Hong Kong Stock Exchange attaches to Ruixiang. The other party attaches great importance to Ruixiang, and Ruixiang can also get some resource tilt.
"I heard that the Hong Kong Monetary Authority intends to open applications for virtual banking licenses?" Zhang Yida asked calmly.
The so-called virtual bank in Hong Kong is a bank that uses the Internet or other electronic transmission channels to provide services. It does not have physical branches to reduce operating costs, and can provide 7×24 hours of services;
It mainly targets individuals and small and medium-sized enterprises, providing retail services such as deposits and withdrawals, loans, settlements, exchanges, investment and financial management.
The definition is similar to that of domestic Internet banking, but the name is slightly different.
Zhang Yida heard that a large number of powerful companies such as Leech Financial Services Group, Penguin, Goudong Finance, Dami Finance, Ctrip Finance, Anping Insurance, Zhongan Insurance, Standard Chartered Bank, Bank of China Hong Kong, PCCW and so on are interested in this license.
These companies are either local snakes or large financial technology companies.
If Ruixiang competes with them, the advantage is not particularly great.
And Hong Kong is such a big place, licenses are very limited. It is rumored that the first batch of licenses may only be approved for 3, and there are more than 30 companies applying, each of which has some background.
Therefore, in order to increase the probability of approval, major companies formed alliances with each other and planned to apply for this virtual bank license in the form of a joint venture.
Maybe this virtual bank won't make much money, but it can learn from its experience and copy it to other countries and regions in the future.
This alone makes many financial technology companies unable to hold back, and the same goes for Ruixiang.
Li Xiaojia frowned, thinking about the meaning of Zhang Yida's words.
Are you looking for a virtual bank license?
However, the Hong Kong Monetary Authority and the Hong Kong Stock Exchange are not under each other, and his words may not always be effective!
"Mr. Zhang, Hong Kong does plan to open applications for virtual banking licenses, but the Hong Kong Monetary Authority is issuing licenses. I may be able to help recommend one or two.
More still need to be reviewed by the Hong Kong Monetary Authority, including reviewing the company’s qualifications, size, technological level, financial industry experience, etc.”
Zhang Yida shook his head, "Mr. Li, you misunderstood, that's not what I meant.
What I want to say is to invite the Hong Kong Stock Exchange to join us and apply for a virtual banking license together with Ruixiang."
Li Xiaojia immediately understood Zhang Yida’s intention. He wanted to get listed on the Hong Kong Stock Exchange and increase the probability of passing the review.
If the Hong Kong Stock Exchange joins, it goes without saying that you will get one of the three licenses.
What a good calculation!
Li Xiaojia finally understood Mr. Zhang's method of tying up the listing place with the virtual bank and knowing how to do business.
"I agree with this matter in principle. I wonder how the share ratio will be distributed?"
Li Yijia thought about it briefly and decided to agree.
"How about Q3? You don't have to worry about technology at all, the Hong Kong Stock Exchange will just wait for dividends."
Li Xiaojia chuckled, "You're really welcome. You want to occupy a dominant position and have absolute control."
"Why not 51% and 49%?" Li Xiaojia asked.
Zhang Yida spread his hands, "After all, the main business of the Hong Kong Stock Exchange is not a bank. Ruixiang needs to take on many functions such as development, operation, and management.
It’s not a lot to get 20% more.”
Li Xiaojia didn't say anything more, but talked about Ruixiang's listing.