Vol 4 Chapter 52: Strive

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Are the two thoughtful opinions of oneself really so worthless? Page was a little angry. ??

"I repeat, I support your approach because auction-style pricing is more in the interest of our major shareholders."

Feng Yiping simply didn't copy Peppa's and other whitewashing statements, and there were no outsiders and no need to pretend.

"It's just that I think it is necessary for us to clearly recognize the huge difficulties that such a pricing method will face in operation,"

"In other words, can we evaluate the pros and cons of it and the ordinary way of listing? If we can first realize the difficulty of auction-style pricing from an ideological perspective, and do more preparations, then In actual operation, it will be more calm and the effect will be better, what do you think?"

I think very beautifully, but I do it very badly. This kind of mistake is not only made by ordinary people, but also the two geniuses of Google.

After Google insisted on using Dutch auctions to determine its own ipo stock price, it immediately detonated a hornet's nest.

The big brothers and little brothers on Wall Street immediately attacked everywhere, or came forward to speak in person, or asked reporters and experts to publish articles, the purpose was one, and Google’s move was spreading everywhere that similar stocks would immediately fall once they went public. Speech.

Moreover, these bankers are not just talking, and not just shareholders. They have done a lot of things themselves, which is still a fatal action: they have united many institutional investors and boycotted the subscription of Google stocks.

Combination actions like Wall Street have been very effective.

These measures have had a great impact on the retail investors that Google hopes to benefit from in the process of its own listing. In the eyes of many investors, Google’s aura is dim or simply disappeared. Many of them are all about buying. Google's stock is not interested. ? Need to read

In the face of such large-scale and consistent bad-mouthing, even the big guys on the sand dune road, such as Sequoia's Moretz and kpcb's Dole, made their voices several times, "This is malicious smear."

However, in the minds of ordinary investors, investment banks are more credible than venture capital. Moreover, there are only so few venture capital firms that support Google, while there are so many investment banks that are not optimistic about Google—you Don't expect retail investors to have their own opinions, of course, follow the general trend.

That’s fine. The point is that Google has made a lot of faint moves because it’s unclear. Maybe it still feels too good. In short, some of Google’s actions, which seem to have an effect, are to attack Wall Street. God assists.

For example, because there are too many small and medium investors who are worried about subscribing, that is, too many retail investors, they will raise the stock price too high. After the IPO, the stock price has limited room to rise, which will make these users who want to go public through Google and get satisfactory returns to be disappointed in the company. , They have issued the "winner's curse" warning more than once.

The main meaning of the winner's curse is that the value of the auction item is always overestimated.

The general idea is that our stocks are risky, so be careful when you buy them! After the listing and trading, the chance of rising is not high, and the possibility of falling is not small, so if you buy our stock, it will really fall by then, don't blame us oh dear!

Don't say it is unpredictable!

When I looked at the information later, Feng Yiping wanted to break his head and couldn't understand, which genius with a big brain made the decision of such a "stroke from the gods"?

The most classic God assist, nothing more! In the eyes of ordinary investors, this is just a strong corroboration of the judgments of those investment banks on Wall Street?

As a result, Google itself succeeded in dispelling the enthusiasm of many retail investors, and institutional investors resisted it. The final result was that the roadshow had a very ordinary effect and the market reaction was very cold. To ~www.wuxiaspot.com~ Google finally realized the seriousness of the problem. Page, who rarely accepted interviews, stood up and accepted an interview with "Playboy", which naturally contained a lot of private goods, such as ours. The company has performed very well, and there is no reason why our stocks are performing badly. It must be very good to subscribe to our stocks... etc.

Google, which has always advertised that it does not take the usual path, has always thought that it is not a traditional company, this time ignoring the quiet period, and successfully incurred a big trouble.

They successfully aroused the anger of key organizations. It was that se, whose power was so powerful that Jobs was afraid, immediately sent a letter of concern and inquiries, "Why do you want to make such remarks during the silent period? Give me an explanation, if you don’t Give me an explanation, then I will give you an explanation,"

What explanation? Naturally, the reason for disapproving ipo is explained.

At this time, more people believe that Google's ipo is really no longer certain!

Of course, Google’s ability to solve problems is pretty good. After some effort, sec's anger was finally calmed. However, they are very proud to only conduct roadshows in the United States, not to mention Asia, not even Europe...

As a result, I had hoped to issue stocks at a price of 108 to 135, but in the end I had to drastically lower it to US$85. The maximum difference was US$50, a reduction of nearly 40%!

The original plan to raise 3.3 billion US dollars, in the end only 1.67 billion US dollars...

Moreover, although the stock price rose by only 18% on the first day of ipo, which seemed reasonable, it rose by 27% the next day. Within three months, Google's stock price quickly exceeded $200.

So, Google’s ipo pricing actually failed.

It was originally a good hand, and it was abruptly played for them and almost lost. This matter may only be done by genius.

If you hold these stocks for a long time, whether the issue price is 85 or 135, in fact, it has little effect, but in the Ipo, Feng Yiping wants to sell 5% of the shares, then whether the issue price is 85 or 135, then the impact can be considerable.

He doesn't remember how much Google's total equity is. He only probably remembers the market value after listing, which is more than 26 billion US dollars. According to that calculation, the 5% he will sell is worth about 1.3 billion US dollars.

If it can be issued at the highest price of 135 originally booked, then this part of its own income will be close to 1.6 times of 1.3 billion US dollars, which is properly over 2 billion.

Even if it is issued at a low price of 103 US dollars, that is more than 1.2 times, and the final purchase will exceed 1.5 billion US dollars.

This is a gap of more than 200 million to 700 million U.S. dollars. Why is it not a small amount? How can Feng Yiping achieve this?

Therefore, he would not care about Peppa's dissatisfaction.

"We all know that the price of ipo is more than $100. This is a dividing line. If it is above or below $100, the difficulty will be very different. So, can we measure the possible results of these two methods?"

"I think the most important basis for judging whether the listing is successful is whether it can bring us the most cash, and other retail investors. These are all secondary. What do you think?"

Page and Brin are always easy to sway about some key things. For example, they certainly hope that the higher the amount of cash out of the market, the better, but they don’t want the world to think that this is their pursuit, so It also involves the fig leaf of giving retail investors a fair investment opportunity.

As a result, retail investors do not want to buy, and their own income is also greatly reduced.

At this point, Feng Yiping still admires Zuckerberg, who was later on Facebook. He made it clear that my ipo pursues high returns, so he also plays auction-style pricing, but because of his clear goals, he played very successfully. On the first day of ipo, the stock price rose only 0.6%!

But what about this? In the eyes of the general public, isn't Facebook still a good company, a great company, and a company worth investing in?

Feng Yiping has many plans and opportunities next year. Of course, the higher the return on listing, the better.

"If the investment bank is confident that our stock will be issued at a high price of more than $100, I think this is also an option that can be considered, what do you think?"

"Feng, we can't just see the immediate benefits. We hope that our current listing will set an example for subsequent companies and benefit more ordinary investors."

It is indeed a role model, but it is a role model close to the opposite.

"Paige, I just want to remind you that some things are incidental and not the main purpose of ipo. What do you think?"

"It's better for the ipo to return to its essence, not to let it go. If the priority is reversed~www.wuxiaspot.com~ then it is possible that none of our goals can be achieved,"

"I am not opposed to auction-style pricing. I just hope that at least some of us will have a very clear understanding of the hardship of this road."

"That is, you still agree to do this?" Page asked.

"Of course, we will definitely maintain a high degree of consistency. I agree and admire your persistence, and I will fully support and cooperate with you to achieve this goal,"

But you don't seem to mean that.

"Annie informed me that the meal is ready," Brin interrupted their argument in time.

It turned out unconsciously, it was already evening.

"Eat first, and discuss tomorrow," (to be continued.)

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