The bell-ringing ceremony ended and when the inquiry phase began, some people involved in the listing even had an unreal feeling as they watched Cisco's soaring stock price.
After seven rounds of bidding that lasted two hours, Cisco shares were officially traded, with an opening price of $28, an increase of 55.5% compared to the issue price of $18.
The 55.5% opening increase was comparable to AOL's two months ago. However, Cisco's opening market value was US$8.7 billion, which alone exceeded the highest market value of AOL's IPO two months ago.
However.
The opening market value of US$8.7 billion is still just the beginning.
Throughout the day that followed, the entire capital market was closely watching Cisco's rising stock price.
Excluding the pre-opening inquiry period, during the trading that lasted for more than four hours, Cisco's stock price reached a maximum of $49.75, equivalent to 276% of the issue price, and the highest market value reached $154.7.
Such a market value has surpassed the two relatively established technology giants Microsoft and Intel.
Finally, as of the close of the day, Cisco's stock price was fixed at US$36.25, with a single-day stock price increase of 101%, and a market value of US$11.27 billion.
In just one day, a corporate giant with a market value of tens of billions of dollars was officially born.
In Simon's memory, on the first day of Yahoo's listing, the highest share price was equivalent to more than three times the issue price. However, at its highest point on the day Yahoo's stock price was listed, its market value was only about US$1 billion.
A company with a market value of US$1 billion and a company with a market value of US$10 billion are obviously not the same.
What's more, it's still 1991.
In this era, no giant company with a market value of 100 billion has emerged in the entire North America.
A market value of tens of billions of dollars is already a threshold.
For example, Time Warner, a media giant with corporate net assets of US$25 billion, had a market value of only more than US$8 billion last year due to the economic environment and high debt. Only after the U.S. stock market rebounded this year did it return to the tens of billions market capitalization club.
Therefore, it can definitely be called a miracle that Cisco's market capitalization broke through the tens of billions of dollars in a single day.
Prior to this, many analysts on Wall Street predicted that Cisco's optimal IPO market value would be US$3 billion. If the market feedback is good after the listing, the market value is expected to exceed US$5 billion.
As for Simon's direct determination of Cisco's IPO market value at US$5 billion, Wall Street generally believes that this is a risky move that kills the goose and seizes the egg, and it is a foolish move by Simon.
The issuance price is set too high, which limits the room for the stock price to rise. Even if the IPO is barely successful, it is likely to cause the stock price to collapse after the listing.
Once a company's IPO breaks through, its development in the next few years may be clouded.
The final outcome of the matter was obviously beyond everyone's expectations.
The highest single-day increase was 176%, and the highest market value was US$15.47 billion.
The closing increase reached 101%, with a closing market value of US$11.27 billion.
With such an excellent start, even if the stock price will correct in the coming period, it will not be able to conceal the fact that Cisco is favored by the capital market.
Looking back from the results, many people found that Cisco's start like this on the first day of its listing was not an accident.
The most significant point is that compared to the last AOL, Simon Westeros’ public performance in this IPO was obviously more high-profile and public. The entire Westeros system is building momentum for Cisco’s IPO. Simon Westeros Westeros even published a signed article in the New York Times for the first time.
Young people who have accumulated tens of billions of dollars in wealth in just a few years are enough to gain enthusiastic support from the capital market.
Simon Westero's prediction at the bell-ringing ceremony that Cisco's market value is expected to exceed US$50 billion in the next five years has completely ignited the market enthusiasm accumulated by the Westero system for Cisco's IPO during this period.
Since the 1987 stock market crash, the average annual return on the U.S. stock market has been less than 10% in recent years due to the continued economic downturn.
Even based on Cisco's market value of US$11.27 billion at the closing of the day, if the company's market value can reach US$50 billion in five years, the investment return will be enough to make countless pension funds, insurance funds and other capital forces in North America flock to it.
Affected by Cisco's sharp rise on its first day of trading, the technology sector of the U.S. stock market also saw an overall rise.
Microsoft's stock price rose 6.3% that day, with a market value of $13.39 billion at the close.
Intel's stock price rose 3.7% that day, with its market value closing at $11.09 billion.
AOL's stock price rose 7.1% that day, with its market value reaching $7.19 billion, returning to its peak state on the first day of its IPO in July.
Among the surge in technology stocks, Motorola, which fell 3.9% in a single day, is like an alternative.
This result is only because Simon Westero said in an interview on the day of Cisco's listing, "I have sold Motorola shares."
In fact, the Motorola that Simon remembers had a market value of hundreds of billions at the peak of the new technology wave around 2000. This company's performance has continued to rise in the past two years due to the rise of mobile communications, so it is very worthy of investment.
However, now that the two sides have formed a rift, Simon has no intention of deliberately relaxing the situation.
Moreover, if Nokia wants to enter the North American market next, Motorola will undoubtedly be the biggest obstacle.
During the acquisition of Bell Atlantic, it was precisely because Motorola filed objections to federal regulators that Simon had to publicly promise that Nokia would not enter the North American market.
This time, retired Motorola Chairman Robert Galvin did not disappoint the outside world. He once again came out to attack Simon in the media. Galvin believed that Simon’s remarks at the Cisco bell-ringing ceremony were extremely irresponsible and an insult to the public. Investors were misled, and the SEC should launch an investigation into Simon's remarks.
Over the following weekend, Motorola's management had to once again publicly clarify that the company's operating conditions were excellent, and also claimed that it would enter the Internet equipment market and break Cisco's monopoly in this field.
Because of Cisco's high stock price on its first day of trading, short selling was inevitable on Wall Street.
Robert Galvin's attack on Simon clearly played into the hands of some hedge funds.
Therefore, in the following days, a wave of news appeared in the media attacking Simon for his irresponsible remarks about Cisco's future stock price. However, predicting a company's future stock price trend is basically what the entire Wall Street is doing.
Every Wall Street investment bank regularly releases corresponding evaluation reports.
Although Simon's statement about Cisco's market value of US$50 billion in five years seems a bit outrageous to many people, it does not violate any federal stock market regulations.
Although there are still some turmoils, Cisco's IPO has been a great success in any case.
With a financing of US$720 million, after excluding all formalities, Cisco finally received US$660 million.
The management team announced a series of corporate development measures in the following week.
Affected by these good news and active market transactions, Cisco's market value has remained steadily above 10 billion US dollars in its second week of listing.
In addition, the green shoe plan initially determined was also implemented smoothly.
Some other Cisco shareholders sold an additional 6 million shares at the offering price of $18, cashing out $108 million.
At the beginning, these shareholders were complacent that Simon could agree to activate the green shoe mechanism. As long as the IPO was successful, even if the stock price did not rise too high, it would not be difficult to cash out the additional 6 million shares.
However, when Cisco's market value exceeded 10 billion in a single day, the shareholders who promoted the green shoe plan would inevitably regret it.
According to Cisco's current stock price, these 6 million shares are completely given away at half price. The shareholders who sold the shares are equivalent to a one-time loss of hundreds of millions of dollars. How can this not make people feel distressed.
What’s more, there’s Simon Westeros’ five-year, $50 billion prediction.
In fact, most investors are not lacking in patience. The reason why they choose to cash out is not only their own capital needs, but also because they are uncertain about the future of the company.
No one knows what will happen to a company in the future
However, if Simon Westero's prediction of Cisco's five-year market value of $50 billion comes true, selling additional shares this time will appear very unwise.
For the Westeros Company, other shareholders' choice to cash out actually brought some benefits.
According to the equity structure plan drawn up before Cisco's IPO, once the initial shareholders' Class A shares are sold, these shares will automatically be converted into Class B shares with only one-tenth of the voting rights of Class A shares, unless both parties agree additionally in advance and obtain control. The approval of the shareholders and the company's board of directors would otherwise include the shares held by the Westeros Corporation.
Simon would certainly not agree that the nature of the equity sold by other shareholders would remain unchanged.
Therefore, the conversion of 6 million Class A shares into Class B shares means that Westeros' voting rights in Cisco are further increased.
Cisco successfully completed its IPO. While the media continued to discuss the company's stock price, it soon began to focus on another hot topic.
How much is Simon Westeros currently worth
The reason for this is because "Forbes" magazine stated that it will publish the new year's list of the 400 richest people in the United States in mid-September.
Although the U.S. stock market began to recover in the first half of the year and the Gulf War was fought cleanly, the continued sluggish trend of the U.S. economy did not immediately improve.
Affected by the general environment, the wealth growth of many top wealthy people has stagnated. Some wealthy people in the real estate field even went bankrupt and were completely kicked off the North American rich list.
Simon was clearly an accident.
In the past year, the Westeros system annexed two corporate giants, MCA and Bell Atlantic, with a combined market value of US$14 billion at one time. As a result, the total debt of the entire Westeros system exceeded tens of billions of US dollars.
However, after the continuous success of the IPOs of America Online and Cisco, coupled with the sharp rise in the stock prices of technology companies such as Microsoft, Intel, and SUN in which Westeros has heavy holdings in the past year, no one would think that Simon Weiss Tello's personal assets will decline.
Simon Westeros has been targeting the richest man in North America and the world since last year.
The question now is, to what extent has this super-rich man’s net worth increased this year
Simon himself didn't have time to take stock of this.
Although Cisco's IPO was a great success, John Chambers and other managers were also under increased pressure because of Simon's five-year $50 billion speech.
Now that the words had been spoken, Simon had to pay more attention to Cisco. Over the following weekends and the first few days of the new week, Simon stayed in San Francisco to personally participate in Cisco's next plan.
It was not until Thursday, September 12, that Simon was able to return to Los Angeles.
Naturally, I still couldn't relax after that.
Previously, on September 6, the same day as Cisco's listing, "Thelma and Louise" directed by Catherine opened in North American theaters with 1,216 screens.
From September 6th to September 12th, the first week of "Thelma and Louise", the cumulative box office of US$7.74 million in seven days basically met Daenerys Entertainment's expectations.
Because it has a good reputation in the media, this movie is expected to have a very beautiful long run.
In addition to the new film "Thelma and Louise", Daenerys Entertainment has been continuing to advance a series of recent film projects. Simon returned to Los Angeles and immediately began to work on these projects.
Strictly speaking, Hollywood is not suitable for the professional manager system, and major studios have always been more inclined to paternalistic decisions.
The two current 'professional managers' of Sony's Columbia Pictures, Peter Cooper and Jon Peters, are undoubtedly the most typical negative cases.
Due to Sony's original commitment not to interfere with Columbia Pictures' operations and many other promises, under the management of two 'professional managers', Columbia Pictures' recent operating conditions have become even worse.
Therefore, even if Daenerys Entertainment is split into three production and distribution networks: Daenerys Pictures, New World Pictures and High Gate Pictures, Simon still holds the ultimate power of all projects. What he lets go of, In fact, it is more about the execution rights of its film projects.
Moreover, the planned production and distribution volume of the three record companies is expected to be around 40 movies per year, which is actually not that many.
What's more, every film project often means an investment of millions or even tens of millions of dollars. As long as the time is properly arranged according to the specific circumstances of the project, Simon can basically take care of it.
Time has entered mid-September, and the year-end schedule is no longer far away.
The final installment of the "Scream" series, "Scream 3," is scheduled to be released on October 25, which is just over a month away. This will be the beginning of Daenerys Entertainment's end-of-1991 schedule. .
During this period, not only "Scream 3", but Daenerys Entertainment's "Toy Story", "Cape Fear", "Fried Green Tomatoes", "The Piano" and other projects at the end of 1991 were successively released. Finish.
"Toy Story" was undoubtedly the top priority of the year-end 1991 schedule.
The box office of this 3D animated film itself is actually second to none. As long as it can achieve the same success as the original film, the peripheral sales of the film can reach billions of dollars. This is the key.
Moreover, "Toy Story" can also provide Universal Studios with an animated IP image that can compete with Disney, which is also crucial.
If it were not for the planned projects such as "Toy Story" and next year's "Jurassic Park", Simon would not dare to rush into the construction of Universal Studios Osaka.
As a movie theme park, if it lacks the iconic big screen image that attracts tourists like Disney, the future business situation can be imagined.
Compared with Disneyland, Universal Studios has always had great shortcomings in terms of IP.
Before Daenerys Entertainment took over MCA, Universal Studios could only purchase licenses from other studios in most cases to build attractions in the studio to compete with Disneyland. Universal itself also tried to develop many animated movies. The projects have not been very successful, and for many years there has not been an IP image provider for Universal Studios.
In the original time and space, the reason why popular 3D animated movies such as "Despicable Me", "Minions" and "The Secret Life of Pets" appeared in Illumination Entertainment under Universal Pictures is actually because of Universal Pictures' overall corporate strategy. The result of having to continue investing in 3D animated movies.