"What are you talking about? Facebook and Twitter won't cooperate with us this time when they go public? How much do they plan to sell their stocks for per share, and how much will they sell in total?"
Goldman Sachs CEO Osfor looked surprised. They had always been sponsors before the subsidiaries of Fengyu Holdings Group and Polar Bear Holdings Group went public.
Everyone cooperates very well. Every time, Feng Yu and Kirilenko's companies are successfully listed, and the funds raised are never small amounts. These two super rich people are also very satisfied. What happened this time
"The two companies each plan to raise about US$2 billion. The specific amount per share has not yet been determined, and they have not inquired from us."
"Who are their underwriters?" Osfor was very unhappy. They failed to become sponsors this time, but it would be good to buy some stocks of the two companies.
Sponsors are not allowed to hold shares of the sponsoring company, which is easy to understand. However, Goldman Sachs has previously purchased the stocks of Feng Yu and Kirilenko's listed subsidiaries through other companies. As long as it is done with a little manipulation, it is not illegal.
They, Goldman Sachs shareholders, do not hold shares in those companies, but their relatives can. This is not illegal, and the profits gained do not belong to their families
"The same companies as before, Barracuda, Citibank, Morgan Stanley... became its lead underwriters, with JPMorgan Chase being the sponsor."
These big financial companies have all become underwriters, but Goldman Sachs is not there. Why is this
The underwriter's commission is still quite high, especially the stock underwriting of such high-quality companies, which is generally relatively simple. Moreover, large companies such as these can join forces as underwriters, which can also enhance investors' confidence. They will not underwrite junk stocks.
"Do you know why there are problems with our cooperation?"
"It seems that when we were the sponsor of Guge Company last time, your wife's company purchased a lot of Guge Company's shares, so it got into some trouble and delayed Guge Company's listing for two weeks."
"But that time I made Guge Company's stocks sell at the highest price!" Osfor said angrily, "And that was my ex-wife, and we have no legal relationship anymore!"
Although they say so, everyone knows what the actual situation is.
But even if those problems arise, you shouldn't not even contact Goldman Sachs for price inquiry, right? Huh, it must be intentional by other underwriters. They just want to squeeze out Goldman Sachs!
Osfor didn't know at all that it was Feng Yu and Kirilenko who requested that the companies making inquiries this time should all be smaller financial companies. It was said that they were worried that the other party would subvert their equity in these two companies.
This reason barely makes sense, but in this way, the price of this stock may not be very high.
In fact, other underwriters are also having headaches. If they hadn't seen everyone cooperate more than once and the commissions were good, they wouldn't have accepted this kind of underwriting request.
Both companies issued 100 million shares, accounting for 25% of the total share capital. However, at the time of inquiry, the issue prices of the two companies were also different.
Facebook's inquiry reached a maximum price of $23, which was much lower than their estimate of $26.
Twitter’s inquiry price was only thirteen dollars, which was much lower than their estimate of seventeen dollars.
Can those small investment companies afford high prices? I really don’t know what the two top richest people in the world are thinking!
The funds that can be raised by issuing 100 million shares are far lower than they expected. Is this enough for the company's development
Who doesn’t know that Internet technology companies burn the most money at the beginning? Of course, if you make money, you will make money quickly.
The financial companies that were inquired about were all overjoyed. They never expected that they could also be inquired about. But what they didn't expect was that these underwriters actually hinted that they would subscribe more.
What do you mean? There is only so much issuance. If they subscribe for so much, it is simply not enough. Does it mean that the underwriter here has the right to place allotments? Or is there an over-allotment option
In fact, not at all. The placement rights are ultimately decided by the two companies themselves.
Goldman Sachs did not become an underwriter or sponsor this time, not because of the minor incident that occurred last time when Guge Company's shares were issued, but also because they required placement rights.
Placing rights, that is, in the event of over-subscription, the underwriters can decide how much to sell to whom.
For example, if 100 million shares are issued, but the number of subscriptions reaches 200 million, what should I do if the 100 million shares are simply not enough? This requires deciding who to sell these stocks to and who to choose as the company's shareholder.
Feng Yu discussed with Kirilenko to choose small financial companies or banks that were about to be destroyed. The advantages were clearly explained to Kirilenko, and of course the disadvantages were also explained clearly.
Kirilenko made the same choice as Feng Yu. It’s just these small companies, let them suffer a big loss.
I don’t know what these companies’ expressions were like when they saw that the stocks they bought with great enthusiasm finally fell below the issue price.
Kirilenko even suggested that if the number of oversubscriptions is large, then more can be issued to these small financial companies or banks to let them spend more.
And you must continue to release some good news after the silent period to make them happy first. When the stock price really drops, there will be times when they cry.
The final issuance price of Facebook was set at US$24/share and that of Twitter at US$14/share. This was also the result of discussions between these underwriters and Fengyu Holdings and Polar Bear Holdings.
Originally they wanted to set it higher, but Feng Yu did not agree. In fact, Feng Yu thinks it can be sold even if it is set higher, but the number of oversubscriptions may not be that much, and it will not be able to trap these small financial companies and banks.
Only by allowing these small financial companies and banks to go bankrupt can the financial crisis in the United States become more serious, have a greater negative impact on the U.S. economy, and narrow the gap between the economies of China, Russia, and the United States.
On the day of listing, it was very lively. Little Zach and Evan from Twitter rang the bell together, both of them looking rosy.
The result was not what Feng Yu expected. Sure enough, the number of subscriptions exceeded the issuance by more than double. At this time, the two companies also selected their new shareholders in accordance with the requirements of Feng Yu and Kirilenko.
Those investment institutions that bought the stocks were overjoyed, while those who did not buy or sell the stocks were confused. They subscribed so much, but they didn’t get any share
Why did those small financial investment institutions and banks get so many stocks
Fengyu Holding Group and Polar Bear Holding Group will definitely regret it, Feng Yu and Kirilenko will also regret it, definitely! (To be continued.)