Reborn in America, I'm serious about making money.
Chapter 207 Lihua Supermarket IPO
"Lihua Supermarket has submitted an application to list on the Hong Kong Stock Exchange, which will be the largest IPO in the Hong Kong stock market."
"Lihua Group, the parent company of Lihua Supermarket, stated that the funds raised from Lihua Supermarket's IPO will be used for investment in new projects."
"A mysterious new project, everyone is looking forward to it."
"Lihua Supermarket, which has more than 4,000 stores in mainland China, is currently the largest supermarket in mainland China."
"Lihua Supermarket is still expanding; is it facing a shortage of funds?"
Will the new project bring profits to Lihua Supermarket?
The funds raised by Lihua Supermarket will be used for the construction of basic e-commerce projects, namely warehousing and logistics companies, and settlement centers.
Lihua Supermarket, Lihua Online, and Lihua Warehousing & Logistics Company are separate entities. Lihua Warehousing & Logistics Company primarily provides logistics services to these two companies, and also offers other courier services.
What connects these three elements is the settlement system.
When you place an order through the Lihua Supermarket system, Lihua Warehousing will provide logistics services, and the nearest warehousing center will deliver the goods to the supermarket.
Lihua Supermarket also serves as a courier service center, with staff responsible for receiving and sending packages. Lihua Online, on the other hand, uses this courier service, centered around Lihua Supermarket, to send goods.
In this round of financing, Lihua Supermarket issued 20% of its shares, raising HK$50 billion, bringing its total market capitalization to HK$250 billion.
Many people are wondering, what kind of project would cost 50 billion Hong Kong dollars?
This has attracted widespread attention in Hong Kong. HK$50 billion? What a huge appetite! What kind of project is it?
"So mysterious, I really don't know what they're up to."
"The financial crisis has just passed, and they're already going public. I wonder who has such an appetite to take on such a large scale."
"Five hundred billion? That's incredible... This time it's bound to break the issue price."
"Back then, Lihua Group spent 8.1 billion US dollars to acquire Lihua Supermarket. As a result, Lihua Supermarket has developed rapidly and become the number one retail enterprise in mainland China."
With the listing of Lihua Supermarket, the stock price of Lihua Group skyrocketed, soaring to unprecedented heights. In just a few days, it has increased more than thirty times, approaching a market capitalization of one trillion Hong Kong dollars.
Zhang San returned to "Cloud-Based Cottage" once again, but this time he kept a low profile. He had bought the entire street on the mountaintop, so there were hardly any people or tourists here.
The Cloud-Based Cottage hasn't changed much, but besides Zhang San, Zhou Huimin is now also inside.
"Lihua Group is actually yours?"
Zhang San looked at her strangely and said, "Huh~"
Zhou Huimin said, "Back then, we raised hundreds of billions of Hong Kong dollars in several rounds of financing..."
Zhang San said, "Most of that was my money, okay? Later I bought stocks, and then bought them back during the Asian financial crisis. I said I controlled 90% of the stocks, believe it or not. This time, with the surge in prices, I'm selling all my stocks."
"But, but, that's trillions of Hong Kong dollars, that..." Zhou Huimin was so shocked by Zhang San's words that she was speechless, only muttering, "This is fraud, it's..."
"Even if you tell anyone, I won't admit it, and no one will believe you." Zhang San pulled her to the huge floor-to-ceiling window, where the view was excellent, overlooking the entire Victoria Harbour.
He slowly traced a circle with the hand holding the wine glass and said, "Ask the owners of those buildings. Which of their buildings wasn't acquired through deception? Which one wasn't built on the blood and sweat of Hong Kong people? If they can do it, why can't I?"
"Look at the tallest villa we live in now, the former mansion of the tycoon; guess how they got it? I bought it now, and do you know where that money came from? It came from the stock market and futures market."
"I will use the money I raise to create more jobs in mainland China and contribute more to the development of mainland enterprises. I can use so much money to benefit more people; while others, with so much money, will seek capitalism, but I will not."
Will Zhang San transfer so much money he raised to mainland China?
No, it will only transfer from left to right hand.
Lihua Supermarket is not short of money at all; he's doing this to cash out.
The new logistics system has been established. Now all that's needed is to recruit and train people before we can start operating. All the funds raised will be used to pay Xiangjiang Sandali Engineering Company, which is a shell company set up by Zhang San for the purpose of transferring these funds. These funds will be transferred to Sandali in batches, according to the engineering projects.
Even if someone investigates, it's all legal and justified, and no one can find fault with it.
Zhou Huimin seemed to be swayed by his words. In fact, she had only said a few words when she noticed Zhang San's strong reaction, and finally said weakly, "I'm sorry, I didn't mean to doubt you, I was just a little curious..."
"I'm sorry, I've been under a lot of pressure lately, there's been too much going on on Wall Street," Zhang San continued. "Managing so many companies, it's normal to be a little neurotic."
Shortly after, the Hong Kong Stock Exchange approved the IPO, and some details of Lihua Supermarket's listing were disclosed. They planned to build the largest e-commerce company in mainland China, encompassing offline (Lihua Supermarket's sales network), online (Lihua Online's online service platform, which would take two years to complete), and a logistics and delivery company as a link. Simultaneously, Lihua Online would introduce a third-party company, E-Pay, to provide an online payment service system…
With the internet booming in North America, establishing such a company in mainland China would naturally lead to tremendous growth.
Moreover, they have already connected thousands of upstream and downstream companies to join the plan, which will not only create more jobs but also generate more tax revenue…
On the day the news was announced, Lihua Group became the second listed company, after Cheung Kong Holdings, to surpass HK$1 trillion in market capitalization, and was the talk of the town.
"How many did we sell?"
"More than HK$100 billion."
Zhang San heard that over 100 billion Hong Kong dollars was acceptable, and then he said, "Let's keep selling; we'll have 50% of the shares left."
The current rise in Lihua Group's stock price is mainly due to the IPO of Lihua Supermarket. The reason why Lihua Supermarket is viewed favorably is because of Lihua Online, a huge e-commerce business, which is also an internet business.
But when the dot-com bubble bursts in North America, will Lihua Supermarket and Lihua Group also collapse?
"Heh... Good thing it collapsed, then we can buy back those stocks. That sale and buyback alone would probably amount to over a hundred billion Hong Kong dollars, right!?"
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