I asked you to save a bankrupt factory and you became the richest man in the world.

Chapter 389 079-080: This listing price? (5000 words today)
Hillhouse’s IPO estimated the overall market value of Hillhouse Technology to be 4100 billion yuan.

A total of 28.7 billion shares were issued, and the issue price of the shares was set at HK$26.

These 28.7 billion shares had already been sold out through underwriters.

28.7 billion shares is not a small IPO.

A total of 574 billion yuan of liquidity will be diluted.

This means that Hillhouse Technology will receive a one-time targeted financing of more than 500 billion yuan.

If there is anyone who is more nervous, it would be the institutions that invested in Hillhouse Technologies.

Although a large number of institutions bought Hillhouse Technology's stocks mindlessly, most of them were snatched away.

However, the price-to-earnings ratio of 25 times also made them feel anxious.

This P/E ratio obviously eats up the earnings for the next few years. They actually have no idea whether they can make a lot of money.

But, good things have to be snatched away. If everyone is snatching them away, then they are all good things, right?

One of the important reasons why they are optimistic about Hillhouse Technologies is that they are optimistic that Hillhouse Technologies can make it to the end.

Because in any industry, as long as it survives the period of battle royale, the extremely inward-looking companies and small shrimps will be killed, and the remaining electronic technology giants will begin to enter a prosperous stage.

Now, there are actually some corresponding signs.

For example, the home appliance industry, after nearly 10 years of internal and external competition, has successfully exported home appliances from island countries, cold countries, Europe and the United States. By 2015, home appliances from island countries had become other categories in China.

After crushing the home appliances in Japan, South Korea, Europe and the United States, the overall profit margins of Gree and Midea have been rising slowly.

Midea’s share has slowly increased from less than 2010% in 10 to 15%.

Gree’s share has increased from 2010% in 3 to around 17%.

Therefore, in their view, Hillhouse Technologies has the potential to become one of the last giants in the mobile phone manufacturing industry.

The scale advantage of the electronic technology industry is unmatched by the home appliance industry!

The most important thing is that Gao Huaijun, as a major shareholder of Hillhouse Technology, promised not to reduce his holdings in the next two years.

In other words, as a super major shareholder (referring to a major shareholder who holds more than 60% of the shares and has absolute control), Gao Huaijun is very confident about the development of Hillhouse Technology in the next two years.

Under this premise, the scarcity of Hillhouse Technology's stocks has greatly increased. If they are stabilized in the near future, there will not be too big a problem.

And after Gao Huaijun rang the bell.

He and Hua Jiantou's big boss Hua Tianyi stood in the audience, waiting for the listing.

Hua Tianyi couldn't help but excitedly said to Gao Huaijun, "Mr. Gao, I have a feeling that when the market opens today, Hillhouse Technology's stock is expected to rise by 30%!"

Many investment companies at the scene were very enthusiastic, which made him feel much better.

"30%?" Gao Huaijun laughed loudly, and then said, "As a TOP5 electronic technology company in China, with various high-tech reserves as endorsements, and my promise not to reduce holdings for two years, it's only increased by 30%? You are underestimating Hillhouse and the future potential of Hillhouse Technology, a subsidiary of Hillhouse!"

"I think a 50% increase would be easy."

There are many "monster stocks" listed in Freeport, but there are even more "penny stocks" (penny stocks refer to stocks whose prices are already lower than 1 yuan and therefore can only be priced in cents).

There are many stocks that rise to 50%, but most of them are small stocks that are mainly hyped by market makers.

Even an increase of 300% is not uncommon.

But after a big rise, there will inevitably be a big fall. If you chase the rise, it will definitely fall into the dealer's wishful thinking.

However, for a company like Hillhouse Capital, which has raised hundreds of billions of dollars in financing and is so large in size, it is unrealistic to increase that much.

What’s even more difficult is to maintain a stable stock price after the stock price rises.

The trend of the loom-like four major banks in China is actually driven by government capital, such as pension funds.

For stocks like Hillhouse Technology, no one will help you to drag the market, so it will naturally be more difficult.

Like the stock of Huitao Group, a Hong Kong-listed company in later generations (HK08238, share price 0.10 HKD, market value 6221 million HKD).

Huitao Group's stock price actually continued to rise after its listing. Before the flash crash, it had increased by more than 35 times in the year.

The stock price suddenly collapsed and then continued to fall, closing down 97.36%.

The stock price is even lower than before.

Become the most popular stock among popular stocks!
This is the cruelty of the capital market.

Just as Hua Tianyi was looking at Gao Huaijun in amazement, shocked by Gao Huaijun's optimism.

Hillhouse Capital issued 28.7 billion shares. That’s 28.7 billion shares!

These 28.7 billion shares became tradable immediately after entering circulation, and the price that appeared in the first second of opening shocked the entire Hong Kong Stock Exchange!

41 Hong Kong dollars!

With this start, it directly rose by 57.9%!

At the moment of listing, Hillhouse Technology's stock price rose violently from HK$26 to HK$41.

This number directly broke Gao Huaijun's previous estimate.

What’s funny is that Hua Tianyi also laughed at Gao Huaijun for being too optimistic in his estimate.

It turns out that I am the clown!

The crowd that had not yet dispersed in the venue couldn't help but gasp.

"Fuck!"

“This is the starting price!”

"Damn, I thought Hillhouse's price was too high at first, but I didn't expect that Hillhouse Technology's price was too low!"

"unbelievable!!!"

"Awesome, this is really awesome, a 25 times P/E ratio can be violently increased by 58%, I am really impressed."

At the same time as its listing, Hillhouse Technology's dynamic market value also rose from the initial 4100 billion yuan to 6473 billion yuan.

When Gao Huaijun saw this result, he could not say that he was overjoyed, but he was stunned. He himself could not believe that the capital market was so optimistic about Hillhouse Technologies.

Moreover, Gao Huaijun took great pains to negotiate a price-to-earnings ratio of 25 times with a group of institutions.

And now, the market value has directly risen to more than 6000 billion.

Why bother chatting with those old men in finance?
No wonder all those entrepreneurs want to go public.

Going public is the best way to price your business and target the public directly.

You will know whether you are a donkey or a horse just by pulling it out for a walk.

The head of the Hong Kong Stock Exchange, Laura Cha, was extremely excited.

The project she mainly promoted was to get Hillhouse Technologies listed on the Hong Kong Stock Exchange.

As for Hillhouse Technologies' listing on the Hong Kong Stock Exchange, she can be said to have put a lot of effort into it.

In order to please Gao Huaijun, it is almost like kneeling and licking him.

In the battle for technology companies with major exchanges such as Nasdaq, the Hong Kong Stock Exchange is often at a disadvantage.

There is no way. They are Midea’s exchange. Whether it is liquidity or popularity, they cannot compare with the Hong Kong Stock Exchange.

And now, Hillhouse Technologies has achieved such amazing results as soon as it went public. Naturally, as the main promoter, she is also proud of it.

It would be no fun if the stock price fell below the issue price as soon as it went public, just like what happened to the coarse grain company in later generations!

Therefore, she was under a lot of pressure.

Now, Hillhouse Technology’s start is worthy of her attention.

At this time, when the Hong Kong Stock Exchange was in a frenzy, media reporters seized the opportunity to broadcast real-time reports to the world.

They had a hunch that a world-class technology company would rise in the Hong Kong Stock Exchange!
28.7 billion shares of stock.

This is not a small size.

If small investors are not optimistic about Hillhouse Technology, especially Gao Huaijun's future development, the stock price will fall straight down after being pushed up by institutions at the opening.

Because the support provided by institutions is limited.

In the end, it all depends on how much individual travelers like the company.

And those investors who have not invested in Hillhouse will also follow the wind.

The current situation is better than Huajiantou imagined!

The current dynamic PE has reached 39 times. What does 39 times mean?

The annualized rate of return is only 2.6%!
After the 2008 financial crisis, the Federal Reserve entered a six-year interest rate cut channel, maintaining an easy interest rate range of 0%-0.25% for seven years.

And what will this data be in the year 2024?

The federal funds rate level in 2024 is 5.4%!

The loose interest rate of 0%-0.25% has also caused the United States' national debt, even long-term national debt, to hover around 2%.

This means that Hillhouse Technology’s position in the minds of investors is almost the same as that of Jinyuan Securities’ U.S. Treasury bonds!
This confidence made Gao Huaijun want to laugh out loud!
In the future, Hillhouse's financing costs in the bond market will probably be much lower. But the current situation is that all investors are too optimistic about the future of Hillhouse Technology.

Now Gao Huaijun is planning not to reduce his holdings for two years, so what is there to worry about?
Would you be satisfied with just earning 57.9%?

impossible!
This is completely impossible!

Under the influence of this mentality, the turnover rate of Hillhouse Technology's stocks has actually dropped!

Friends who are familiar with the capital market should know that this is a rare situation of reluctance to sell.

However, the individual investors and small and medium-sized investment institutions outside are like crazy, holding their coins and waiting to enter the market.

It's like the expression of a little boy who has been single for more than 30 years, seeing a beautiful and tempting girl.

I’m hungry. I’m so hungry!

The more this happens, the higher the stock price will rise!
Don’t think that institutions are better than ordinary people. For some stocks that have skyrocketed, are irrational, and have no market makers, such as Tesla in later generations, their performance is crazier than you think.

Today, something even stranger happened.

The market, which had been rising slightly, turned downward after half an hour.

It changed from a slight increase of 1% to a slight decrease of 1%.

Many industry organizations are asking each other what exactly is going on.

It turns out that many institutions are temporarily withdrawing funds and releasing funds from other stocks in order to take a stab at Hillhouse Technology, a new stock with an electronic technology concept!
Can we still play like this?

Can it actually directly affect the market?

The reporters present were even more excited and reported the latest situation accordingly.

In an instant, the news that Hillhouse Technologies rose 57.9% on its first day of listing and caused the Hong Kong stock market to fall slightly became a hot search on Weibo within an hour.

A piece of financial market news became a hot search, which is extremely rare in Weibo, which focuses on the entertainment section!

"Wow! Hillhouse Technology's IPO is quite a big deal! It's up 57.9%. Are investors so optimistic about this company?"

"What I want to complain about is that this round of A-shares is not good. Domestic companies with a bit of talent have gone to other places to list."

"Hillhouse doesn't go to those places to go public and reap profits. It has money for research and development, and at the same time, it also makes money for shareholders. I admire his choices and persistence along the way. I really want to support him. I am 18 years old now, and I want to buy his stocks."

"Hillhouse Technology's listing is a great success for the company. It also provides some inspiration. If a company wants to become stronger and bigger, it must constantly seize opportunities, start from the user's perspective, and adapt to the requirements of the times and continuously transform and upgrade."

"Awesome! Awesome! Boss Gao is getting more and more awesome now."

Moreover, Hillhouse Technology’s performance after its listing is far more than that.

One hour after the opening, after stabilizing for a period of time, Hillhouse Technology's share price soared from HK$41 to HK$48 almost in a leap!

Today's stock price has risen by 85%!

crazy!

The Hong Kong Stock Exchange is going crazy!

Now the stock price of Hillhouse Technology can no longer be calculated using the value regression method in microeconomics.

Because according to the value regression method, Hillhouse Technology's dynamic PE has now reached 46 times!
Hillhouse Technology’s annualized rate of return is only a pitiful 2%!

No investment bank dares to give a technology company such a crazy valuation.

Even in the early 90s, when the Internet bubble was at its peak.

nor!
And that’s not all.

The Hong Kong stock market does not have a circuit breaker mechanism like Nasdaq.

Therefore, Hillhouse Technology's stock continues to soar like a rocket.

As the market closed in the morning, Hillhouse Technology's share price had reached HK$51.

Compared with the increase at the opening, it has reached 96%!

Investment analysts at all financial institutions, big and small, have become numb at this point.

There is nothing they can do unless they are numb.

Because Hillhouse Technology’s stock price cannot be described rationally at all now!

Such a large-scale listing also triggered a decline in the broader market, causing many large fund companies to mobilize emergency funds.

This is a rare situation in more than ten years, and the price is still rising!

This shows that ordinary individual tourists are entering!
Only the frantic entry of individual investors can explain why Hillhouse Technologies rose by nearly 100% in just half a day.

This group of individual tourists doesn’t care whether you have returned to your original value or not.

They only know two things.

One point is that Hillhouse Technology, a company that has only been established for ten years, has grown into a company with a market value of hundreds of billions. So is it possible for it to grow to trillions in the future?
If there is this possibility, it is worth trying hard to get in!

No matter how bad Hillhouse Technologies is, it can't be worse than those penny stocks with poor financial conditions!
If you don't enter now, when will you enter?

The second point is that Gao Huaijun, a young man in his early 30s, founded such a company and dared not sell off his holdings for two years after it went public.

This confidence is so strong!
Moreover, the concepts of "Internet of Everything" and "ALL IN AI" he mentioned are very awesome. Individual visitors believe that Gao Huaijun can lead Hillhouse Technology to implement these two concepts.

If one of these two concepts can be implemented, it would be easy for Hillhouse Technology's stock price to increase several times.

SO EASY!
Therefore, the main force has now shifted directly from institutions to individual investors.

Then individual tourists led to the entry of hesitant small and medium-sized institutions.

In the end, even large institutions became suspicious.

Could it be that Hillhouse Technologies will really be that awesome in the future?
still...

I think it's time to sell Hillhouse Technology's shares.

Is it blindness or mistake?
Therefore, in such an atmosphere comparable to a bull market, Hillhouse Technology's stock price smoothly broke through 100% in the afternoon.

At its highest value, the stock price directly reached HK$56!

This increase has reached an astonishing 115%!

crazy!

All crazy!
Institutions that hold a large number of Hillhouse Technology shares are also crazy about it.

They are also in regret.

What they regret is not subscribing to Hillhouse Technologies' shares.

But...

Fewer subscriptions!

TNND!

It wasn’t this crazy when the subscription meeting was first held!
It was only HK$25 per share at that time!!!

The entire Hong Kong Stock Exchange, and even stock exchanges around the world, are discussing this magical electronic technology company.

Hillhouse Technology!

Everyone wants to know why this company attracts investors, especially small individual investors.

Such a crazy entry!

With a share price of HK$56, the dynamic price-to-earnings ratio has reached a rare 54 times.

In other words, the annualized rate of return has exceeded 2%, which is already a crazy number - 1.8%!

Hillhouse Technologies created a miracle on the first day of its opening.

With a liquidity of 574 billion yuan and 28.7 billion shares of stock, such a large volume was able to double the stock price within one day of opening.

This trend is a dream start for all listed companies!

You should know that Hong Kong stocks are T+0, which means that you can buy and sell on the same day, without the need for a cooling-off period!

For those customers who applied for Hillhouse Technology's shares in advance, they can directly double the price by selling now at the peak.

This is a very rare thing in the history of investment.

Such a large amount of capital, 574 billion yuan, after doubling, will require leveraging 1000 billion yuan in funds.

It can be said that no banker dares to play with Hillhouse Technology now!
The same goes for pension funds!
Even if Hillhouse Technology's stock price has risen by 100% at this time, investors in the Hong Kong Stock Exchange, even if they wait until almost the end of the trading day, there are still countless people waiting to take over, and the number of buy orders is still pending, which is astonishingly large.

But the transaction rate is surprisingly low.

Not only did the retail investors who entered the market not sell, but even the institutions did not sell much.

At this price, why aren’t you abandoning it on a large scale?
How optimistic are you about the stock price rise of Hillhouse Technology!
At this time, not only ordinary investors were going crazy with joy, even the medium-sized shareholders of Hillhouse Technology were going crazy with joy!
This start.

It’s so dreamy!

(End of this chapter)