Chapter 1680
Words:1635Update:22/10/21 00:09:06
"What did you say? They are not going to cooperate with us for Facebook and Twitter's listing? How much are they selling their shares for? How much are they selling in total? "
Goldman Sachs' CEO, Oswald, is shocked. They had been the sponsors for Wind and Rain Holdings Group and Polar Bear Holdings Group when their subsidiaries got listed.
Everyone works well together, and Feng Yu and Kirilenko's companies are listed successfully. The funds raised are not small, and these two super-tycoons are satisfied. What happened this time?
"The two companies plan to raise about two billion US dollars each. The specific price for a share has not been decided, and they have not inquired with us."
"Who are their underwriters?" Oswald is unhappy. Goldman Sachs and Goldman Sachs did not become the sponsors this time, but it is not a bad idea to buy these two companies' shares.
Sponsors are not allowed to own the company's shares, and this is understandable. But Goldman Sachs had used other companies to buy the shares of Feng Yu and Kirilenko's listed subsidiaries. All they need to do is to manipulate the company and is not illegal.
Goldman Sachs shareholders do not own those companies' shares, but their relatives can. This is not illegal, and the profits will belong to their families.
"It's the same companies as before. Barclays Bank, Citibank, Morgan Stanley … will be the lead underwriters, and JP Morgan is the sponsor."
These big financial companies are the underwriters, but Goldman Sachs is not. Why is this?
The commission for an underwriter was not low, especially when it came to underwriting the shares of such a high-quality company. It was usually simpler. Also, these big companies will work together to increase investors' confidence. They will not underwrite those junk shares.
"Do you know why there are problems with our cooperation?"
"I think it's because your wife's company bought a lot of Google's shares when we were the sponsors for Google. That's why Google's listing was delayed by two weeks."
"But that time, I sold Google's shares at the highest price!" Osford said angrily. "And she is my ex-wife. We have no legal relationship!"
Although that was what they said, everyone knew what the actual situation was.
But even if there are problems, they should have asked Goldman Sachs for the price. Humph, it must be the other underwriters doing this on purpose. They just want to push Goldman Sachs aside!
Osford doesn't know that it is Feng Yu and Kirilenko's request that only smaller financial companies will be involved in the inquiry. Osford heard that they are worried that the other party will subvert their shares in these two companies.
This reason was somewhat reasonable. But if that was the case, the price of the shares might not be that high.
In fact, the other underwriters were also having a headache. If it weren't for the fact that they had worked together more than once and that the commission was quite good, they wouldn't have accepted such a request.
Both companies issued 100 million shares each, accounting for 25% of the total share capital. However, during the price inquiry, the two companies issued at different prices.
The highest price that Facebook asked for was 23 USD, which was much lower than their estimate of 26 USD.
Twitter's inquiry price was only 13 USD, much lower than their estimate of 17 USD.
Can those small investment firms afford such a high price? I really don't know what the two richest people in the world are thinking!
The amount of funds raised by issuing 100 million shares is far less than their expectations. Is it enough for the company's development?
Who doesn't know that tech companies are the most expensive at the start? Of course, if the company can make money, it will be very fast.
The financial companies that were questioned were overjoyed. They had never expected their shares to be inquired by the underwriters. But they also did not expect the underwriters to ask them to buy more shares.
What do they mean? The issue is only so high, and the shares they bought are not enough. Could it be that the underwriters have the rights to distribute the shares? Or they have the rights to over-distribute the shares?
Actually, there are no rights. The rights to distribute the shares are decided by the two companies themselves.
This time, Goldman Sachs is not the underwriter or sponsor. It is not because of the incident with Google's shares. It is because the underwriters want the rights to distribute the shares.
The underwriters can decide how many shares to sell if the shares are oversubscribed.
For example, if the company issues 100 million shares, but the number of oversubscribed shares reaches 200 million, what if the 100 million shares are not enough? The underwriters must decide who to sell the shares to and who to choose as the company's shareholder.
Feng Yu and Kirilenko had discussed with each other. They want to choose those small financial companies or banks that are about to go bankrupt. Of course, he had also told Kirilenko about the pros and cons of it.
Kirilenko and Feng Yu made the same decision. Let these small companies suffer losses.
Kirilenko wonders what these companies' expressions will be like when the shares they bought fall below the IPO price.
Kirilenko even suggested that if there are a lot of oversubscribed shares, they can issue more shares to these small financial companies or banks and let them pay more.
Also, after the quiet period, they must release some good news to let these small financial companies or banks be happy. When the share prices fall, they will be crying.
In the end, Facebook's IPO price is set at 24 USD per share, and Twitter's IPO price is 14 USD per share. This is the result of the underwriters' discussion with Wind and Rain Holdings and Polar Bear Holdings.
The underwriters had wanted to set the IPO price higher, but Feng Yu did not agree. Feng Yu felt the shares can still be sold even if they set the IPO price higher. But the number of oversubscribed shares will not be as high, and these small financial companies and banks will not be affected.
Only by letting these small financial companies and banks go bankrupt will the US financial crisis become more severe and affect the US economy. This will narrow the gap between Hua Xia, Russia, and the US economy.
On the day of the listing, it is very lively. Zuckerberg and Evan from Twitter rang the bell together. Both of them are in high spirits.
As Feng Yu had expected, the number of oversubscribed shares is more than double of the IPO price. These two companies also followed Feng Yu and Kirilenko's instructions to choose their new shareholders.
The investors who bought the shares are overjoyed, and those who did not buy the shares are confused. They had bought so many shares, but they did not get a single share?
How did those small financial companies and banks get so many shares?
Wind and Rain Holdings and Polar Bear Holdings will regret this. Feng Yu and Kirilenko will also regret this!
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