Huayu started as a substitute director

Chapter 633 On the eve of listing
Fang Hong didn't pay attention to the disturbances in the outside world, nor did he intend to pay attention to Xiao Wang. It would be useless even if he did.

As long as you respond, the other person can keep arguing with you for days and nights without stopping. If you can't eliminate him physically or subdue him with one fatal move, there's no need to pay attention to him.

He has been scolded by even Lei Jun, Dong Ge, and Sun Yuchen, and he totally looks down on everyone.

Lei Jun is now at least a mobile phone giant; Dong Ge is at least an e-commerce giant;
Sun Yuchen is really awesome. It is said that he cashed out 120 billion yuan with virtual currency and is said to be investigated by the FBI. However, it is just a rumor and the details are unknown.

But they are doing fine and they are also developing blockchain.

Anyway, he is a big shot and a very awesome person.

Not only did they curse these people, but they cursed even more celebrities and artists, including Ju Jingyi, Feng Kuzi, Fan Xiaopang, Lin Genxin, etc.

In just these few years, it has become extremely rampant.

However, it is understandable that these years are also the period when Wanda is at its peak.

Young people are inevitably full of youthful vigor.

Fang Hong and Liu Tianxian came to Hong Kong for her birthday, and accompanied her on a trip to see the sights.

The two had never traveled together since they got married, so they took this opportunity to do so. They were not doing this for this purpose, but for another reason.

It’s about the listing of Tu Piaopiao.

It took four or five years to develop Tu Piaopiao and four or five years to prepare for listing. Finally, all preparations for listing were completed this year.

The Hong Kong Stock Exchange's Listing Committee also passed the hearing and approved the listing on September 1.

In addition to traveling these days, the two have been conducting roadshows with the team of Tupiao CEO Zheng Zhihao to promote the company's value to institutional investors.

To lay the foundation for the stability and liquidity of the stock price after listing, there must be someone to buy it after you issue it.

Another reason is to determine the issue price. It would be embarrassing if the price falls below the issue price.

The roadshow is the finishing touch before listing, and its essence is to transform the company's story into value recognized by the capital market.

The story is over, let’s see how much it is worth!

However, Tu Piaopiao has the Jade Rabbit on the left and Chang'e on the right, forming a three-legged tripod, which still makes investors very confident.

After all, the company has content, cinemas, and publicity and promotion channels. The company is very well equipped.

There is no need to tell stories to those institutions, just show your strength.

Like other companies, some institutions asked before listing what they would do if their losses expanded, which led to cold institutional subscriptions and ultimately a drop in the price after listing.

Of course, there is a lock-up period for institutional subscriptions, which is generally 6-12 months. During this period, you cannot sell your shares and you must maintain your shareholder status.

This is to ensure the stability of the stock price after listing. If you sell right after allotment, other shareholders will definitely lose confidence.

It takes three years in mainland China, which is longer than in Hong Kong.

Some people always think that investing is a very simple thing. They just need to identify a company and wait to collect the money. They think that is it.

Especially for a reborn person like Fang Hong, it seems that investing is that simple.

I really don't understand the actual situation. Fang Hong bought Tesla stocks and waited for almost three years before selling them.

像美团2019年才盈利，烧钱烧了9年；滴滴2023年才盈利，烧了11年；京东2018年才盈利，烧了14年。

JD.com was founded in 1998, but its mall was only launched in 2004.

Any company, no matter what kind of company it is, will burn money in the early stages of its establishment, with basically no exceptions.

As a reborn person, Fang Hong had limited funds and resources in the early stage. With only 1 million yuan, he faced two choices.

Develop yourself and invest in others!

But it also takes several years of development for others to see results. There will be no results at first because the valuations of newly developed companies are very confusing and you cannot estimate how much the company is worth.

He knew that the company would rise in the future, but he had no way of judging how much it would be valued at initially.

So either you wait a few years for this company to get started. Only when it gets started can you make money, or you wait for it to go public.

But why didn't Fang Hong use the 1 million to develop himself during this process? His self-development would not be slower than investing in others.

It may take others three to five years, but he may see results in two to three years. Why should he give money to others and develop their industries?
He has his own industry, which requires a lot of capital. Wouldn't it be good to turn it into his own strength?

Giving money to others means using your money to develop other people's industries. Isn't it obvious enough how to choose?

Just like when Fang Hong bought the house, he could do two things by paying in installments, but he could only do one thing without paying in installments. That's the logic.

And when you invest in someone, they are initially burning money and developing, and you need money and want to exit.

You want to quit? You want to quit?
There is a lock-up period and a time dimension. If you want to exit, first, someone needs to take over; second, you can't get the money for a while. You have to wait at least half a year or a year before someone gives you the money. And if you want to exit, some of them need the consent of shareholders. It's really not that easy to exit.

Once it goes public, there will be another round of lock-up period.

With this time span, why would Fang Hong invest the money in others instead of choosing self-development when he only has that much money?

If you buy Tesla and Nvidia stocks, they have been listed for many years and you can buy and sell them at any time.

Angel investment: Others don’t have much money during the development stage, and it’s not easy to exit and get the money. If you have that time and you take the money yourself, you can make it big.

Now Fang Hong’s Chang’e and Jade Rabbit are running no slower than Meituan. Meituan is still burning money on a large scale, having burned 105 billion this year and having a net loss of 59 billion.

Without an investment of several hundred million, it would not work at all, and even if you invest, you still won’t be able to develop.

Fang Hong has invested in Chang'e and Jade Rabbit for many years, and it is almost on the right track. Is there still a need to invest in Meituan?
So this is one of the reasons why Fang Hong did not invest in Meituan, Didi, or Xiaomi. At that time, he was also developing himself and was short of money, so why should he invest in others?

As a rebirth, the biggest investment is to use the limited money in your hands flexibly.

No one has the resources and funds to cover all areas without focusing on one.

Tencent is awesome, but it focuses on music, IP and games. Its film and television content is not very strong, not as strong as Alibaba, and not as strong as Yutu.

Because he only has so much money and so many resources, he also needs to do other things, not just the big entertainment sector, so if he wants to focus, he has to give up something.

Every year, Tencent spends between 100 billion and 200 billion on music copyrights, with a cumulative expenditure of over billion.

How many people can afford this? Even Alibaba would be shocked.

Not to mention Fang Hong. It's good enough for Fang Hong to get the content right. It's good enough for him to race against time to deal with the copyright war and establish the platform.

However, since Tencent spends more on music, its layout in other areas will inevitably be slower, which is beyond doubt.

After the roadshow, the shares will be allocated.

Tupiaopiao will issue 2.64 million shares, with 90% allocated internationally and 10% publicly offered in Hong Kong.

That is to say, 2.367 million shares will be locked up for institutions, and 2640 million shares will be issued to retail investors in Hong Kong.

The Hong Kong market is too small to accommodate so many heavyweight companies. Tencent and Xiaomi only grew up later.

There are five institutions that have locked in that 90% share, namely IMAX's Hong Kong subsidiary, Microlight Ventures, Hua Yang United, Oasis Capital, and Xiaomi Group.

Hua Yang Lianzhong is a digital marketing company that has participated in the advertising of many movies.

The founder of Weiguang Venture Capital is Lin Ning, who is also the founder of Weying Times. He is a competitor of Tupiaopiao, but now the competition in the ticketing market has intensified and Weying Times is lacking in momentum.

Lin Ning was previously the senior vice president of Tencent.

As for any connection between the two companies, there isn't much. It's just that the other party has more resources and knows Tony Ma. Are such resources awesome?

These five investors will stabilize the share price after the initial listing at the established share price, with a lock-up period of 6 months.

That is to say, they cannot sell during these six months in order to stabilize market confidence.

In addition, the underwriter, that is, the securities company, can issue an additional 3960 million shares to stabilize the risk of breaking the issue price.

Of course, these distributed shares are all expansion of share capital, that is, 1 share is split into 10 shares. After this split, the shareholding ratio remains unchanged.

However, the targeted placement diluted Fang Hong and his team's equity. However, no matter how the placement is done, Yutu is still the largest shareholder and Chang'e is still the second largest shareholder.

After everything is ready, it's just a matter of waiting for the listing. On the eve of the listing, several investors including Fang Hong, Liu Tianxian, Tupiaopiao CEO Zheng Zhihao, Chang'e Technology CFO Gao Zhun, Lei Jun, and Weiying Venture Capital's Lin Ning.

There were also some auditors, lawyers, industry consultants and sponsors, who had dinner together in a private room at the Peninsula Hotel in Hong Kong.

The sponsor plays the role of coordinating the listing, supervising communication, and ensuring that the issued information is true and accurate.

Anyway, make sure it is legal and compliant and don't engage in fraud.

The hotel box is high-end and luxurious, with a bright night view of Victoria Harbour outside the window.

"Everyone has worked hard during this period, and thank you for your support of TuPiaoPiao. Our efforts will see the light of day tomorrow. I raise this glass to everyone!"

Fang Hong raised his goblet and stood up.

The expressions of the others varied, some were happy, some were excited, and they all stood up and raised their glasses.

Liu Tianxian was beside Fang Hong, her face slightly red, and she was also a little excited.

"Ding!"

The sound of wine glasses clinking together is crisp and pleasant, and everyone drinks together!

(End of this chapter)