Chapter 294 Penguin goes public

At this time, China's basic idea for transforming commercial banks was the "three steps" of "financial restructuring - introduction of foreign capital - public listing".

The first link focuses on "blood transfusion", and the latter two links focus on "blood production". It is expected that a standardized corporate governance structure will be established on the premise of introducing foreign capital.

The restructuring and investment attraction of Bank of Communications is a complete reflection of this idea.

As early as 2001, the People's Bank of China approved the Bank of Communications to introduce overseas strategic investors with the "Reply of the General Office of the People's Bank of China on Foreign Investment in Bank of Communications".

Starting in 2001, the Bank of Communications first hired Tianjian Xingye Appraisal Company in Yanjing to evaluate its own assets. It can be said that this is the most thorough asset clearance and capital verification since the Bank of Communications was reorganized.

Afterwards, PricewaterhouseCoopers was hired to audit Tianjian's assessment. Almost at the same time, Bank of Communications hired Goldman Sachs as an investment consultant to design a comprehensive reform plan for the Bank.

On June 14, the State Council formally approved the Bank of Communications' overall plan for deepening the joint-stock reform and agreed to the Bank's implementation of financial restructuring and other reform measures.

In accordance with the plan approved by the State Council, with the support of relevant Chinese departments, Bank of Communications will first focus on the disposal of non-performing assets, replenish capital, and successfully complete various financial restructuring tasks.

It is estimated that after the financial restructuring is completed, the balance of Bank of Communications' non-performing loans will be 19.8 billion yuan, and the proportion of non-performing loans will be 3.43%; all provisions will be made in accordance with regulatory standards, and the provision coverage rate will be 72.77%; according to international accounting standards, core capital will be sufficient The capital adequacy ratio is 5.89% and the capital adequacy ratio is 8.82%.

But at this time, Barron's first concern was Penguin's listing.

On June 16, 2004, Penguin was listed on the main board of the Hong Kong Stock Exchange.

Before the IPO, Penguin's shareholding ratio was DS Holdings holding 43% of the shares; South Africa's MIH Group held 11.5% of the shares; the remaining 45.5% was held by the entrepreneurial team, of which Pony Ma personally held shares The proportion is 19.24%.

In this IPO, Penguin will issue a total of 420 million public shares. At an issue price of HK$3.7 (approximately US$0.475), they are expected to raise 1.554 billion (approximately US$200 million). Penguin’s market value will reach HK$6.216 billion (approximately US$800 million).

This time Penguin's IPO went public, including DS Holdings, South Africa's MIH Group and the founding team. None of the shares sold, and all the 420 million public shares issued were newly issued shares.

After this listing, Penguin's total share capital is 1.68 billion shares. After dilution, DS Holdings holds 541.8 million ordinary shares, and the shareholding ratio is diluted to 32.25%; South Africa's MIH Group holds 144.9 million ordinary shares. , the shares were diluted to 8.6%; the Penguin entrepreneurial team held 573.3 million ordinary shares, and the shareholding ratio was diluted to 34.12% - of which Pony Ma personally held 242 million ordinary shares, accounting for 14.4%.

On the day of listing, the opening price of Penguin's stock was HK$4.37 per share, and it reached a high of HK$4.625 in the morning.

However, in the afternoon, large-scale selling suppressed the stock, and Penguin's stock closed below the issue price.

In this IPO of Penguin, Rich23 Capital subscribed for 120 million of the 420 million newly issued public shares.

And on the afternoon of the listing day, after Penguin's stock fell below the issue price, it successively bought about 30 million shares.

The total cost is about US$70 million, and it currently holds 150 million ordinary shares of Penguin, accounting for 8.93% of the total circulation.

But just one day before Penguin went public, the Ministry of Information Industry began to rectify the chaotic telecommunications value-added business.

You know, it was this business that allowed Penguin to get its "first pot of gold." Telecom value-added business accounts for 70% of Penguin's revenue.

Therefore, affected by this incident, Penguin's stock began to decline for a period of time. In addition, in October, China Mobile began to renegotiate the share ratio of telecommunications value-added services with Penguin, and Penguin finally won the share. 85% became an equal share between both parties, with each getting 50%...

And QQ’s dominance in China’s domestic communication software is also under threat.

Just two weeks after Penguin went public, Microsoft's Bill Gates came to China, and then established MSN China's two major R\u0026D centers in Yanjing and Shanghai respectively, officially launching a challenge to QQ.

Moreover, Yahoo China is also promoting the interconnection between Yahoo Messenger and MSN to break the monopoly of Penguin.

This series of news caused Penguin's stock price to be at a low throughout 2004.

This will also be a good opportunity for Rich23 Capital to continue to purchase Penguin shares in the secondary market, because not only are the remaining outstanding shares, but in this case, many Penguin employee shares will also be sold...

In fact, not only Penguin, but also many Internet companies in China at this time, including companies such as NetEase, Sohu, and Zhalang, have telecommunications value-added services as their main source of income.

Therefore, these companies will also be affected by this rectification of telecom value-added services.

Later, after NetArt took the lead in issuing a revenue warning, claiming that their company's revenue from text messages would fall by 50%...

This directly triggered a collective decline in the stock prices of 12 Chinese technology companies listed on Nasdaq.

This is also a good opportunity for Rich23 Capital and Mars Fund to start buying the stocks of Chinese Internet companies.

…

The accompanying female members, including Wang Wanting, except Alia, have all arrived in HK in advance.

In addition, Ivanta also flew directly from New York to Hong Kong and met Barron here.

On June 17, the day after Penguin went public, Barron left HK, and the group took a Gulfstream G450 directly to Yanjing, the capital of China.

"Honey, is this the house you plan to buy?"

"How does it feel, baby."

On the second day after arriving in Yanjing, Barron and Ivanta... "A small farewell is better than a wedding", they came to this courtyard house under the guidance of a local friend.

The last time he went to the Magic City, Barron bought the Yan Family Garden. Later, when he got excited, he asked Chen Fuyang to help him find a good courtyard house when he came to Yanjing.

After this matter was known to Robin Li of Baidu Company, he took the initiative to contact a friend who had done research in this area and selected several courtyard houses in good locations for Barron. Today, under the leadership of this friend , Barron and Ivanta came over to "view the house".

"This is the first place I found for you. Although it is not the largest in area, it is also a relatively well-preserved building. The most important thing is that the location here is good, right next to the Imperial City. Not far away is the east gate of the Forbidden City. Across the river in the courtyard is the Forbidden City on the opposite side. Those who can live here are either rich or noble, which is very suitable for your status."

The other party also learned about Barron's identity from Robin Lee before. This young man with a girl as beautiful as a star in a Hollywood movie turned out to be a real British nobleman and a duke...

Moreover, not only does the other party have a noble status, but he is also incredibly wealthy. He is at the top of the Forbes rich list. Just looking at the way he is surrounded by a group of bodyguards, you will never see him even in this capital.