Winning the new financial era

Chapter 179 Submission of Prospectus

Beijing.

Yimin Wangjin conference room.

"Ready? Guys."

A blond man in his forties with a big nose and a big face joked humorously.

All the executives around the big table in the conference room laughed, and Fan Hongyang said:
"It's all ready, this listing needs a lot of help from Mr. Robert!"

"There is absolutely no problem. Choosing Goldman Sachs as the lead underwriter is definitely the wisest choice, bar none.

On Wall Street, when Goldman Sachs stomped its feet, the ground would shake three times.

Yimin Wangjin is listed, and we will definitely strive for a satisfactory issue price for everyone.

Bless you all, future multi-millionaires and billionaires.

After the listing, if you have any financial needs, you can also find our private banking department of Goldman Sachs, and we will definitely provide you with the best financial services. "

Robert, a foreigner who came from Goldman Sachs headquarters, knew that this group of people was about to get rich, and many Internet companies in Silicon Valley were like this.

Start a business in the garage, after three to five years of struggle, and then go to the exchange to ring the bell, achieve success and achieve wealth and freedom.

But when he got the information of Yimin Wangjin Company, Robert was also taken aback.

Founded in November 2013, until June 11, it has only been in operation for 15 months, less than two years.

Is this the so-called Chinese speed?
What a magical land!
Robert turned his eyes to Zhang Yida who was sitting at the top, looked at his slightly green face, and recalled the record in the document:

Zhang Yida, male, 20 years old, chairman of Yimin Wangjin, holds 55.71% of the company's shares...

It is said that he also has a financial technology company with a valuation of more than 100 billion US dollars, and is also the chairman and major shareholder.

Are there any Western peers who have achieved such high achievements from scratch?
not a single one!

Perhaps it can be compared with Facebook founder Zuckerberg.

This is simply a legend, too topical.

Goldman Sachs holds a 20% stake in Yimin Wangjin and spent a full US$4.4442 million for this share.

With so much money thrown in, it is natural to earn it back on the IPO.

The lead underwriter is only the first step, earning tens of millions of dollars is enough to survive.

The bulk of the profit has to be the 20% stake.

So Goldman Sachs sent Robert over here to be responsible for counseling Yimin Wangjin on its IPO, and at the same time, there was another task - to invite Zhang Yida to the United States as a guest.

"Mr. Robert, must I go to America?"

Zhang Yida rushed back from Singapore because of this incident.

"Yes, Mr. Zhang, as the founder of the company, you are also legendary.

Before going public, go to roadshows in various places and accept some media interviews.

It will help to improve your reputation, and it will also allow Yimin Huijin to get more exposure.

This is also good for the IPO. Yimin Wangjin can raise more funds, and at the same time, the market value will increase a lot. "

The Goldman Sachs Group behind Robert has long planned to promote Zhang Yida as China's "Zuckerberg" as soon as he arrives in the United States.

Started from scratch, started his business for two years, and is worth billions of dollars.

At the same time, he is also an environmentalist. The Huimin bicycle he founded has changed the way the Chinese people travel, reduced carbon emissions by tons, and made outstanding contributions to the protection of the earth.

Goldman Sachs also helped Zhang Yida operate several environmental protection awards, and when he arrived in the United States, he began to award him.

In addition, they are not going to let go of Zhang Yida's "Hui Nong Loan".

Zhang Yida is the Chinese disciple of Nobel Peace Prize winner Dr. Yunus of Bangladesh.

Zhang Yida's touching story, they have already arranged it.

Enthusiasm for public welfare has driven hundreds of thousands of poor farmers in mountainous areas of China to become rich...

What is the effect of covering Zhang Yida's head with halos?
Goldman Sachs Group believes that it will get a satisfactory answer on the stock price.

"Well... let's go then! It's still early, don't worry, let's straighten out the prospectus first!"

Zhang Yida must be going to the road show.Take the media interview arranged by Goldman Sachs along the way. As long as it is beneficial to the company, Zhang Yida has no reason to refuse.

"Okay, in addition to our Goldman Sachs as the lead underwriter, you also need to choose 2-3 underwriters, is there anyone you can consider?
If not, we Goldman Sachs can recommend two for you. "

Robert was very enthusiastic and thought: If we recommend it, we can earn another referral fee.

"Oh... thank you, Mr. Robert, for your kindness. But no need.

I have found CICC and Huaxing Capital here, and they will be responsible for the underwriting of Yimin Wangjin's listing together with Goldman Sachs. "

Zhang Yida is not stupid, he asked Goldman Sachs to recommend a brokerage for him, and if he connected them together, he might kill him severely.

The main cost that needs to be paid for public offering financing in the United States is the underwriting fee, and other fees such as legal fees, audit fees, and road show fees are small.

"By the way, Mr. Zhang, the commission we charge for listing is 8% of the financing amount, so it's no problem!

If there is no problem, let's sign the agreement first! "

Robert got up and was about to get the agreement, but Zhang Yida stopped him and asked:

"Mr. Robert, are you sure you didn't make a mistake?

I have inquired about companies listed on China concept stocks, and the commission is generally 5%-6%.

You Goldman Sachs are so ruthless, you want to charge me 8%? "

Zhang Yida felt that he still underestimated the greed of these Wall Street giants, and he was still a shareholder of the company, so he was so ugly.

"Mr. Zhang, you have misunderstood. Generally speaking, the underwriting commission for Chinese concept stocks is indeed 5%-6%.

But are their companies successful enough to go public?

There is a reason why we charge 8%. First of all, we will pay part of the money to help you operate your popularity in the United States.

It costs money to invite the media and win awards.

But this money is not spent in vain, and the money spent will eventually be "earned" back through a higher financing amount.

There is a famous saying in your country, which says that if you are reluctant to part with a child, you cannot trap a wolf. "

Robert has worked in China for several years, and even gave Zhang Yida a class.

"It's too high. When Shanda went public, it raised more than 10 billion U.S. dollars, and the underwriting fee was only 6000 million.

I will give you a maximum underwriting commission of 6%. If it is more, I will change the underwriting brokerage.

I think **** and Morgan Stanley will be willing to take this business. "

Seeing that Zhang Yida got angry, Robert also lowered the price a bit, down to 7.5%.

Then Zhang Yida talked with him back and forth for a long time, and finally negotiated the price at 6.5%.

After the brokerage was confirmed, Yimin Wangjin began to hire a team of lawyers and accountants.

Two lawyer teams were hired, one for domestic and one for overseas.

Domestic lawyers are responsible for legal due diligence, issuing legal opinions on state-owned equity management and establishment of joint-stock companies, assisting enterprises to communicate with regulatory agencies on legal issues of restructuring, and drafting company articles of association.

Foreign lawyers issue relevant legal documents on whether the company meets the listing requirements of the overseas listing place.

The international accounting firm hired PricewaterhouseCoopers to issue financial audit reports, capital verification reports, financial audit reports during the company's preparation period, and management proposals, and evaluate the company's internal control.

More than a week later, a financial audit report from its establishment to operation to the present was released.

Including the 14th annual financial statement and the 15th annual Q1 financial statement.

For the whole year of 14, the revenue was 18.54 billion and the net profit was 3.94 million.

In the Q15 quarter of 1, the revenue was 11.22 billion yuan, a year-on-year increase of 731%; the net profit was 3.14 million yuan, a year-on-year turnaround, and a loss of 3852 million yuan in the same period last year...

In the Q15 quarter of 1, the wealth management terminal added 120 billion yuan of funds, an increase of 650% over the same period last year...

In the first quarter of 15, the new loan transaction on the borrowing side was 1 billion yuan, an increase of 75% over the same period last year...

Active users of wealth management reached 26.4, an increase of 5.1 from the previous quarter...

The cumulative number of borrowers on the loan side reached 39.8, an increase of 14.7 from the previous quarter...

There are 138 loan stores, covering 116 cities across the country, with 7318 employees...

Total assets of 52.65 billion yuan, total liabilities of 25.61 billion yuan, and net assets of 27.04 billion yuan...

It includes 4 subsidiaries including Yimin Wealth Management, Yimin Puhui, Yimin Financing Guarantee, and Yimin Network Small Loan.

Holds a 10% stake in Bukalapak, an Indonesian e-commerce company.

……

After repeated confirmation, Yimin Wangjin submitted its initial prospectus to the SEC:

The stock code is "YM".Yimin Wangjin intends to raise US$5 million this time, and the underwriters are Goldman Sachs, CICC and Huaxing Capital.

Summary of prospectus:
Calculated by outstanding loan principal balance on our platform as of March 2015, 3, we are a leading P30P financial platform in China…

Our Eagle Eye credit assessment engine predicts each customer's earning potential and behavior through sophisticated algorithms and dynamic models.

Using 5000 latent data variables, we have developed over 1000 decision rules and amassed a wealth of proprietary data from over 1000 million customer loan applications.

Client behavior and risk profile data enable us to develop machine learning to improve our risk management capabilities.

Because of automation and our data capabilities, we are able to conduct a more comprehensive credit analysis of our customers than traditional financial institutions...

Since our inception, we have rapidly scaled the platform.

从2013年11月成立至2015年3月30日，我们累计发放的贷款已达到人民币200亿元（约合32.7亿美元）。

2014年和今年第一季度，我们分别发放了人民币120亿元（约合19.6亿美元）和人民币75亿元（约合12.3亿美元）的贷款……

截至2013年12月31日、2014年12月31日和2015年3月30日，我们的未偿贷款本金余额分别为人民币5亿元、人民币99亿元（约合16.2亿美元）和人民币148亿元（约合24.2亿美元）。

多元化的资金渠道：截止2015年3月30日，我们贷款资金有120亿元来自于网上投资者，占据未尝贷款本金81%。

25 billion yuan of funds came from banks, trusts and other institutions, accounting for 16.9% of the outstanding loan principal.

The 3 million yuan fund comes from its own funds, accounting for 2.1% of the outstanding loan principal.

The successful execution of our strategy is subject to risks and uncertainties related to our business, including:

Regulations and regulations in the P2P finance industry…

……

After the prospectus is submitted, it is waiting for a reply. Under normal circumstances, the first opinion letter from the SEC will generally be received 4-6 weeks after the first report is submitted.

It mainly indicates how SEC members think the company should revise the prospectus to make it more complete and accurate.

Then the company amends its registration form according to the content of the SEC's opinion letter.

After the SEC completes the review, the road show will begin. After the road show is completed, it will be officially listed.

(End of this chapter)