Rebirth Tokyo 1986

Chapter 197 Five Percent Test
Going public is difficult for some companies but very easy for others.

Matsumoto Manufacturing is a simple mode of play.

With clear and concise business operations and stable and efficient profit making, it is a company that every stock exchange is very eager to obtain.

Therefore, after roughly calculating the company's valuation, Masato Takeshita immediately took Zensuke Suzuki and Qingqian Lin to Matsumoto Manufacturing to hold a high-level meeting.

"The company is preparing to go public, and everyone can raise any ideas now."

Masato Takeshita went straight to the point and made a shocking move right at the start.

"When will it be launched?"

"I plan to set the date in July, when people are more wealthy."

July of every year is the time when Japanese companies distribute half-year bonuses.

Many families who receive bonuses will use part of the money to invest in stocks and bonds.

New stocks listed during this period generally see increases in value.

“It’s a good time.”

Vice President Tomoshin Taniguchi came from Industrial Bank and is quite familiar with the listing issue. He highly approves of the choice made by his chairman.

However, out of duty, I still asked: "Isn't it a bit hasty to complete the listing in less than 3 months?"

"It's indeed a bit urgent."

“But I don’t think it’s a big problem.”

"Matsumoto Manufacturing is a high-quality company. Whether it is finding a stock underwriter or conducting a roadshow, it will go very smoothly."

"I guess if possible, Industrial Bank alone would be willing to underwrite all the shares."

Everyone loves high-quality assets, and stock underwriters basically make money if they buy them.

"Yes, the president is right."

Taniguchi Tomoshin smiled and nodded, saying nothing more.

Then Masato Takeshita began to further discuss his listing plan.

In April, we completed communication with several shareholders and submitted listing documents. In May, we started the roadshow and found stock underwriters. In June, we sold part of the shares to all employees of Xinghai Group at a low price.

According to Masato Takeshita's plan, Matsumoto Manufacturing's shares will be divided into 20 billion shares, and the stock price at the time of listing will be set at 1300 yen per share, or US$10.

Then 5% of them, or 1 million shares, will be sold to all employees of Xinghai Group at an ultra-low price of 130 yen.

The number of shares is divided according to the time of joining the company and the size of the position in the company.

But even new employees who had just joined the company purchased 800 shares.

I can’t say how much more it is, but 100 million yen is definitely something that can be earned relatively easily.

"Isn't this unreasonable?"

Although Taniguchi Tomoshin could also benefit from it, he was a representative of Industrial Bank and immediately raised objections.

After all, the stocks distributed to employees are cut from shareholders such as Masato Takeshita and Industrial Bank.

"There's nothing wrong with that. I believe a good company must learn to share profits with its employees."

"But, there has never been a similar situation before?"

Taniguchi Tomoxin still refused to give in. If Industrial Bank knew that he gave up after just a few words, he would definitely be put on the sidelines by the company.

He is here to gain performance, not to lie low.

“There are many similar cases in the United States.”

"For example, Apple, Microsoft and Intel."

American companies are truly at the forefront of the times when it comes to benefiting their employees.

Currently, only a small number of high-tech enterprises do this, but it will become a common phenomenon in the future.

In comparison, Asian companies are a little worse.

Whether in Japan or China, prospective listed companies rarely choose to issue shares to employees.

Internet companies are excluded.

"But we are Japan, and our national conditions are fundamentally different."

"No different. There's a first for everything."

“This time, our company will be number one.”

"Okay, that's settled."

Masato Takeshita made the final decision directly by using his power as chairman and major shareholder.

He believed that with the shrewdness of Industrial Bank, even if they objected in their hearts, they would agree with a smile on their face.

Because there is more than one company under the Youth Group.

After deciding on the simple outline for the listing, Masato Takeshita convened a meeting of all shareholders the next day.

In fact, it is a shareholders' meeting, but Uno Noriyuki, Haneda Ichiro, and Inoue Kunihiko are basically just there to make up the numbers.

Only Toyoshima Akio has more say.

He not only represents his own 1%, but also represents the 25% stake of Industrial Bank.

"This is my plan. I wonder if Senior Toyoshima has any better suggestions?"

"Yes, that's good. We can learn advanced experience."

Toyoshima Akio did care about the 5% stock split, but considering the firmness in the young man's tone, he ultimately did not express anything.

He knew about this yesterday and discussed it with the bank's internal leaders.

The final conclusion is to accept this practice by default.

Matsumoto Manufacturing has no shortage of money, and Masato Takeshita has become famous at a young age, so they have to go along with it.

If Industrial Bank strongly opposes, it will indeed gain some benefits in the short term.

But doing so would offend the vast majority of Xinghai Group's employees, including Masato Takeshita.

Not to mention anything else, just transferring the salary cards of the group's employees would be an enormous loss.

"That's good. I said that given the open-mindedness of Industrial Bank, they will definitely agree with my choice."

Masato Takeshita was very happy and blew hard at Toyoshima Akio.

Then he looked at the other brothers and teachers.

"Mr. Inoue, two brothers, what do you think?"

Ichiro Haneda was worried that the conversation would become awkward, so he was the first to respond.

"That's good. This way everyone will benefit, and employees will work harder."

Then, Inoue Kunihiko and others also chose to agree.

Industrial Bank has already compromised.

There is no need for them to try to stop a chariot when the matter is already settled.

Now that the loss was certain, Toyoshima Akio began to make up for it elsewhere.

"I don't know. How many underwriters will the company look for and how many shares will it issue?"

Masato Takeshita quickly responded: "I plan to find three stock underwriters to underwrite 3 million shares, which is 7% of the stocks."

"If Industrial Bank is willing, it can get up to 20% of the stock underwriting share."

The minimum requirement for listing on the Tokyo Stock Exchange is to have 35% of the outstanding shares.

Masato Takeshita met the minimum requirement.

"Well, yes."

Toyoshima Akio was very satisfied.

A total of 35% of the stocks, of which 5% are distributed to all employees.

Of the remaining 20%, the company can get more than half, making a profit of at least tens of billions of yen.

Although it cannot completely make up for the losses, he is already very satisfied.

As for the small amount of shares that I personally lost.

He believed that his junior fellow student would definitely make up for it in other ways in the future.

For example, expand your fund share in Xinghai Investment.

Masato Takeshita indeed thought so.

He will set up a new fund next year, and then he will be able to give a certain amount of money to teachers and seniors.

We are all human beings.

If Toyoshima Akio can think of it, then Inoue Kunihiko and others can naturally do it too.

That’s why today’s meeting, which caused everyone some losses, went so smoothly.

Because not only Toyoshima Akio and others thought so, Industrial Bank also wanted to invest part of its funds in Xinghai Investment.

Who doesn't want to make more money? After finishing his work, Takeshita Masato smiled and said to the others, "Do you want to go out for dinner?"

"I can, what about Inoue-sensei?"

"I'm free today, no problem."

The two most powerful people nodded in agreement, so Ichiro Haneda and Noriyuki Uno had no choice but to agree.

"Since everyone is okay, let's go."

Large companies like Xinghai Group have partnerships with many catering companies, so you can dine there anytime and anywhere.

Sometimes Izumi Sakai is too busy to cook, so the two of them will randomly choose a restaurant to have a free dinner.

"What are your plans during the company's stock lock-up period?"

When men eat, they tend to talk about politics and work.

The company's instruction to Akio Toyoshima was to shorten the stock lock-up period as much as possible.

He wanted to know if his junior had any related plans.

"The ban period for seniors and teachers can be shorter, set at 6 months. Since there are many shares of Industrial Bank, the ban period can be extended to 9 months."

"As for the shares held by me and my employees, the lock-up period will be set at 12 months."

In July next year, Japan's stock market will still be booming.

Therefore, even if it is not possible to reduce holdings within 12 months after listing, it doesn’t matter at all.

Of course, under normal circumstances, the company will also set a certain number of years and a maximum amount of share reduction.

But as a major shareholder in the absolute sense, Masato Takeshita will naturally not set obstacles for himself.

"Oh, is that okay?"

"Of course, I have great confidence in Matsumoto Manufacturing."

Matsumoto Manufacturing has already formed a brand effect in the mid-to-high-end field. Even if latecomers want to impact it, it will be very difficult.

Of course, over time.

The materials of mid-to-high-end brands will become more and more high-end, resulting in reduced profits.

But even if it decreases further, it is still very easy for mid-range brands to maintain a profit of more than 50% and for high-end brands to maintain a profit of more than 300%.

This is the premium effect of the brand.

"Indeed, Matsumoto Manufacturing is now a money printing machine."

Toyoshima Akio also agreed in his heart, but thinking of the hot stock market, he was still prepared to sell part of it.

At worst, you can buy it again when the time comes.

When they were almost done with dinner, Toyoshima Akio suddenly asked.

“Do you think the current land prices in Tokyo are normal?”

Akio Toyoshima has a strong sense of crisis and always feels that problems will arise in the real estate industry sooner or later.

The growth is crazy and there is no reason for it.

Unfortunately, he is in the minority at Industrial Bank.

If possible, he really wants Industrial Bank to withdraw from the real estate market.

Even if the stock market encounters losses, it is easy to cut losses and exit.

Real estate is different.

If it collapses, there will be no one to take over.

"I also think it's growing too fast. Tokyo's real estate prices surpass those of the entire United States. It's unreasonable."

Ichiro Haneda is very good at history.
Everything he saw reminded him of the situation in the United States before the Great Depression.

The stock market and real estate continue to rise, and people who invest in this industry spend money like water.

This phenomenon is very abnormal.

"Real estate has problems, so everyone should be cautious when investing."

As Toyoshima Akio's absolute confidant, Uno Kiyuki naturally has similar ideas.

If two people have different ideas, it will be difficult for them to get together even if they both graduated from the same university.

The most typical example is the political field.

Waseda students are scattered across various political factions.

Although they sometimes cooperate, more often they are at loggerheads with each other.

"I think it's not a big problem for now. Japan has a small land area and the population is concentrated in a few large cities."

"Land prices in small places may collapse in the future, but in large places it definitely won't."

“Land prices in Tokyo will rise even higher in the future. Even if they fall temporarily, they will rise again.”

Kunihiko Inoue is very confident about the real estate industry in Japan's major cities and believes that he will make a profit if he buys it.

The view is somewhat similar to that of China in the 21st century.

Then he asked back: "Yaren, what do you think?"

"That makes sense, but now that it has risen so high, it will probably peak soon. Normally, there will be a drop after reaching the peak."

"Even if the market can rise again in the future, we have lost time."

"Isn't it?"

It is difficult for one person to convince another person.

At present, the gentleman is determined in his thoughts, so it is better not to refute him directly.

However, considering their close relationship, Masato Takeshita still tried to persuade them indirectly.

"Indeed, if you can seize the top moment, it is better to lock in the profits."

“Then wait until it drops to a certain level before buying it back.”

Ichiro Haneda also felt that this was right, and he planned to do so in the future.

Unfortunately, he underestimated the severity of the Japanese real estate market.

You think you are buying at the bottom, but in fact you are buying halfway up the mountain.

As for making money, just think about it in your dreams.

Of course, with Masato Takeshita around, he naturally wouldn't let them buy halfway up the mountain.

"I have similar ideas. We can communicate with each other then."

Inoue Kunihiko looked at Haneda Ichiro with appreciation, feeling a special sense of satisfaction in his heart.

"Yes, okay, Mr. Inoue."

At this time, Toyoshima Akio said: "Instead of waiting for the housing prices to fall and buy at the bottom, it is better to hand the funds over to Junior Takeshita to handle it."

"The fund controlled by my junior has outperformed the Japanese stock and property markets."

"I feel like this will make more money than buying at the bottom."

When Ichiro Haneda heard his vice president say this, his eyes suddenly lit up.

"Indeed, Brother Yaren's investment ability is much better than the rest of us. It would be more reliable to invest the funds in Xinghai."

Immediately afterwards, Uno Noriyuki and Inoue Kunihiko also responded.

Masato Takeshita didn't know whether to laugh or cry: "Well, we are so familiar with each other, there is no need to beat around the bush, right?"

"Okay, no problem. I do have plans to set up a new fund next year, and I will definitely give you a very high quota then."

Masato Takeshita naturally didn't want his close ones to suffer such heavy losses.

I had originally planned to remind everyone after I cleared out my stocks.

Now that everyone is saying this, it is natural to satisfy it first.

"It's because it's so hard to get the shares of Xinghai Investment Fund that I resorted to this desperate measure."

Toyoshima Akio regretted it very much. If he had known that Xinghai Fund was so profitable, he would definitely have invested half of his fortune in it.

As for all, that is impossible.

No matter how much you trust Masato Takeshita, you cannot put all your money in one basket.

This is a matter of principle.

"Yeah, it's too hard to grab, there's not enough to go around."

"That's right, you guy, why don't you raise more funds."

Ichiro Haneda put his arm around his friend's neck and deliberately made a fierce expression.

"Okay, I'll definitely give priority to you guys next time."

Masato Takeshita smiled and shook his head, feeling that money is still the most attractive.

(End of this chapter)