We are all reborn, who wants to be the richest man?

Chapter 464: Tsingtao Beer to be listed

At the end of September, Luo Nianzhong received senior executives of Tsingtao Brewery Co., Ltd. in Far East Group’s own office.

Since Watsons and Tsingtao Brewery came into contact last year, both parties have gone through a lot of hardships.

As a state-owned enterprise, whether it is reform or listing overseas are major events, and it is not something that Tsingtao Brewery can decide.

Reform and introduction of foreign investment are easy to discuss; the Qindao government, to which Tsingtao Beer belongs, can make the final decision.

But listing in Hong Kong is different. This is a unique and historic event. It is not something you can just pat your butt and say you want to list in Hong Kong Island. So the report was sent to the governor's office again.

Originally, the Governor's Office was going to suppress and reject the proposal, thinking that the risk was too great and that it would be better to proceed step by step. However, after seeing that the cooperating manufacturer was Watsons, they hesitated.

They all know who the boss behind Watsons is, and he is someone who can reach the top.

Not to mention Luo Nianzhong, even Far East Group CEO Welch, COO John Whitebo, and Watsons President Li Xiang are now members of the National Economic Advisory Group.

If someone mentions this casually one day and it is rejected without being reported, the governor's office will not be able to bear the consequences if economic losses are caused.

And just like that, the listing plan was submitted.

As for economic reform, it is all about crossing the river by feeling the stones. It is inevitable to be able to go public in Hong Kong and use external money to develop oneself. There is nothing wrong with accumulating experience through the listing of Tsingtao Beer.

So the approval was quick. It took only about a month from the time San Miguel Brewery Group acquired 20% of the shares of Tsingtao Brewery Co., Ltd. to the time it pushed for listing and filed with the Hong Kong Stock Exchange.

Ten months have passed since then, and the Hong Kong Stock Exchange has officially approved the listing plan of Tsingtao Brewery Co., Ltd., which is scheduled to start issuing shares on October 11, the National Day, and officially list on November 7.

The senior management of Tsingtao Brewery Co., Ltd. came here for this matter. They have no experience and want to learn from the Far East Group.

Another thing is that Tsingtao Brewery Co., Ltd. decided to issue another 1.7 million shares to San Miguel Brewery Group before its listing.

The total share capital of Tsingtao Brewery is 13.08 billion shares. With these 1.7 million shares, San Miguel Brewery Group holds more than 4.3 million shares, accounting for 33% of the total share capital.

Even if the 3.18 million shares in this round of financing are diluted, there are still about 3.3 million shares, accounting for about 25% of the total share capital.

Luo Nianzhong knew very well why Tsingtao Brewery did this and was willing to give away shares.

In addition to the strong marketing capabilities and channels demonstrated by Watsons during this World Cup, there is also the status and influence of the Law family in Hong Kong stocks.

You have to know that Rabbit does not have a corporate law now. How can you make Hong Kong stock investors trust you? Watsons is the best guarantee.

"Mr. Luo, we are here to thank you and President Li Xiang for your arrangements and care.

In addition to coming here to learn more advanced management experience, we also want to discuss one thing with you, which is the issue of stock issuance pricing."

The underwriter for Tsingtao Brewery's IPO is Fengwu Securities under Far Eastern Bank. This is also the first time that Fengwu Securities, a new securities company, has independently carried out a large-scale IPO.

Fengwu Securities was established at the end of 1983, which is only three years ago.

It was established at that time with the momentum of Far Eastern companies listing in Hong Kong. Many small companies were listed and operated independently, but it was the first time that a company like Tsingtao Brewery had a market value of over HK$1 billion.

Tsingtao Brewery issued a total of 3.18 million shares this time, with Fengwu Securities setting a price of HK$2.8 per share. It raised more than HK$8.9 million and has a total market value of more than HK$36 billion.

"I wonder what Mr. Tan thinks?"

"It's like this. Do you think our issue price is too high? I'm afraid that Hong Kong people will not accept it and it will have an impact."

I see. Logically speaking, if the securities company takes over, it means it has spent money to buy the shares. No matter whether the stock price rises or falls after listing, it has nothing to do with Tsingtao Beer.

However, this is Rabbit's first company to be listed in Hong Kong. If the results are not good, it will have a huge impact on future companies that come to Hong Kong to raise funds. At the very least, shareholders will cast doubts on it.

So on the surface this seems to be the listing of Tsingtao Beer, but behind it all is a major event that concerns the Qindao government, the Shandong provincial government, and even the highest levels.

Mr. Tan still hasn't gotten rid of the old ideas and is worried about his official position.

Doesn't Luo Nianzhong want to make more money by issuing shares at a lower price? He does, but he can't this time.

Because if the stock is listed at this price and accepted by shareholders, it will undoubtedly make Fengwu Securities famous in the Rabbit market. Luo Nianzhong is not interested in the current profit, but the profit from the continuous flow of Rabbit companies coming to him in the future. Moreover, this price is not something Luo Nianzhong set at random, but a price that he set after careful consideration.

As the first H-share in history, all business people who have something to do with finance will be familiar with the listing of Tsingtao Brewery.

The stock price started at HK$2.8 per share and broke HK$110 in just three months. A large amount of funds were frozen in the first five days of issuance, with oversubscription alone exceeding times.

Of course, the assets of Tsingtao Brewery that is listed now are definitely different from those in 93.

Take the annual beer production for example. Currently, Tsingtao Beer produces only 12 tons a year, and the first factory with an annual output of tons only started production this year.

In history, when Tsingtao Beer was launched in 93, its annual output had reached 24 tons, doubling its production capacity.

However, the current Tsingtao Beer is not without its advantages.

First of all, he has the endorsement of the Far East, which is more important than anything else.

Secondly, with the World Cup, Tsingtao Beer is now in short supply, and even the sales in overseas markets are much higher than the original sales in the same period.

In order to earn more foreign exchange, Tsingtao Beer had to reduce its supply in China and adopt a hunger marketing approach, and even the product was often out of stock in Shandong Province.

Now the second plant with an annual output of 13 tons and the third plant with an annual output of tons have entered the construction mode, but it is impossible to complete them within three to two years. What limits the development of Tsingtao Beer is not sales but production capacity.

Read more latest popular novels at 6.9*shuba!

What is the main purpose of this fundraising? Construction funds for the second and third plants? How is that possible?

The biggest purpose of this fundraising is acquisition. There are a large number of ready-made breweries across the country that can be acquired and used. By then, the sales volume of Tsingtao Beer will show explosive growth.

Wait for the second and third factories to be built? By then, the market that was hard won would have been replaced by other beer brands.

Which drinker would not drink for two or three years and wait for you? It would be better for him to quit drinking.

"Mr. Tan, you have to know that the issue price has already been disclosed. Lowering the issue price at this time will do more harm than good.

Adjusting too little will be meaningless, but adjusting too much will make investors suspicious and will only make promises in vain.

In Hong Kong stocks, besides San Miguel Brewery, Tsingtao Brewery is the second largest beer stock. Many investors were hesitant because they had little exposure to it. A price cut at this time will definitely scare away many investors."

"this…".

Tsingtao Brewery President Tan Weimin did not expect this to happen. In his impression, shouldn’t the cheaper the product, the more people will buy it? Ultimately, it’s because he doesn’t understand the stock market.

"In that case, let's stick to the price agreed upon by Mr. Luo and Mr. Li. We have no experience and I'm sorry to have embarrassed Mr. Luo."

How could he dare to change it after Luo Nianzhong said so? He didn't want to take the blame if the market failed to meet expectations.

"It doesn't matter, it's understandable that you don't know much about the stock market."

After that, everyone talked a lot, and when everything was settled, Luo Nianzhong sent everyone away, and asked Li Xiang to take care of them before leaving.

After closing the door, Luo Nianzhong's smiling face instantly turned a little cold.

Welch also noticed it and said with a smile, "It seems that you don't think highly of Tan Weimin. Do you plan to replace him when you have the chance?"

“Humph, with him like this, let alone expanding his territory, it would be difficult for him to defend the city even if his territory is too big.

He may be a good hand in an office, but in the business world? Tsingtao Beer won't go far in his hands."

Although it is not stated explicitly, this is what is meant.

"But we are not the major shareholder, and the management rights are not in our hands."

"Not having the management rights doesn't mean we can't replace him. Can't we make suggestions yet? Let us at Tsingtao Beer observe and see if there are any good candidates."

It’s not that Luo Nianzhong is cold-blooded. Finding someone who can help Tsingtao Beer develop in a positive direction is actually beneficial to both parties.

(End of this chapter)