After Makino Auto Group made its debut with Makino Evoque, Makino Technology’s IPO in Hong Kong has reached the final stage.
Since Ele.me has not yet covered the whole country, Makino Auto Group has just been established, there is no way to accurately measure market value, and neither Android nor Apple has come up with anything truly innovative, Li Mu is not prepared to package these companies into Makino Technology. Instead, the two companies should be separated first and listed in Hong Kong using the main body of Makino Technology.
Currently, the valuation given by underwriters is US$320 billion. This valuation is already the highest IPO valuation in the world.
Although many companies had a market capitalization of over US$500 billion at their peak, and some even exceeded one trillion US dollars, this was only achieved after they had been listed for a period of time, or even several years or more than ten years later.
Many large companies are still in their teenage years when they first IPO. They have potential but are not strong enough. Therefore, when they go public, at the IPO stage, they often only get a market value of tens of billions of dollars.
However, Makino Technology is different.
Makino Technology is no longer a teenager. It is now a very large company with huge market coverage and extremely high income. Although it has not yet reached its peak, it can be regarded as being in its prime.
Therefore, the valuation model for investing in children is no longer applicable to him.
Just like the transfer fee for a star, the transfer fee for a genius who is 17 or 18 years old is only a few million pounds. However, this person may be worth ten times in five years, but this will only be given by time and by Went to the arena to witness it.
The same is true for companies. When most companies first go public, their business has not really taken off yet. They rely on the financing from the IPO and the rising market value to support the rapid launch of the company's business.
However, Makino Technology has now set sail.
Therefore, an IPO valuation of tens of billions of US dollars or even more than 300 billion US dollars is no longer satisfactory to Li Mu.
Because in Li Mu's view, YY Ecosystem's high global coverage and high payment rate are already unparalleled in this era. This alone is worth US$400 billion.
Any industry, once it covers the whole world, can get a big buff of X2, X3 or even X10.
Alibaba's main revenue is in the domestic market. Most of the profits of its main businesses, Taobao, Tmall, and Alibaba Cloud, are domestic, so it has a market value of 400 to 500 billion US dollars.
Amazon covers almost all places except China, and has a market value of nearly one trillion US dollars at its peak. If these two companies merge, it will be a global e-commerce and a global enterprise cloud service platform. As long as it does not When it comes to antitrust laws, its market value is by no means as simple as four to five hundred billion plus one trillion. It may exceed two trillion, or even higher.
Later Facebook, like Amazon, failed to cover the Chinese market, but it still achieved a market value of US$500-600 billion or even higher. Tencent's main business is in China, and it also achieved a market value of US$400-500 billion.
Together, the influence of these two companies may not even be comparable to that of Makino Technology, because Makino Technology has almost a monopoly in global coverage.
After MSN completely cooled down, Li Mu never suppressed any instant messaging software products, because he knew that the general trend of the world was established, and anyone who jumped out to compete with Makino Technology would only be in vain. If he takes action, he will drag himself to death.
Therefore, in Li Mu's view, the current market value of Makino Technology of US$320 billion is still slightly low overall.
What's more, Makino Technology is also a shareholder of Google and Baidu, and these two companies have a combined market value of tens of billions of dollars.
Moreover, Makino Image's recent "Flying Tigers" has indeed achieved world-shaking box office results. Although one movie cannot mean that subsequent Makino Image will also go smoothly, it is at least a very strong supplement.
Therefore, Li Mu's ideal market value must first cross the 450 billion line.
As for how much Makino Technology's stock will skyrocket after listing, that is another matter.
In view of this, Li Mu met again with the brokerage representatives.
At the meeting, Li Mu proposed an IPO valuation of US$450 billion.
With a valuation of US$450 billion, all shareholders will dilute 10% of their shares in equal proportions and use them as issued shares. A total of one billion shares will be issued, with a stock price of US$45.
Of the US$45 billion raised, US$35 billion will be used to enhance Makino Technology’s current investments, including research and development, marketing, cloud computing and new business attempts.
The remaining US$10 billion will be cashed out by shareholders in equal proportions.
Everyone has been guarding Makino Technology for a long time, and it’s time to get a big sum of money.
If 10 billion U.S. dollars are divided, even one person with only a small stake can get 100 million U.S. dollars.
Of course, the price is that 1% of his shares will be diluted by 0.1%, leaving 0.9% after dilution.
If you are an executive with only 0.1% of the shares, you can get 10 million US dollars if you dilute 0.01% this time.
This is the advantage of working with a big boss.
If you follow the right big guys and catch a wave of IPOs every two to three years, you can achieve financial freedom with just a few tenths of a share.
There are a lot of people who don't follow the right boss and spend twenty or thirty years working hard, but in the end they can't even afford a house.
As for the remaining shares in the hands of shareholders, they will be locked in the agreement, and they will not be able to reduce their holdings in the secondary market or pledge them in the primary market in the next two years.
In other words, even after Makino Technology is listed, Li Mu still holds more than 70% of the shares, but he cannot sell these shares in the secondary market, cannot buy or sell, and cannot make pledge loans in the primary market.
If major shareholders do not sell their shares, it will give investors greater confidence.
If the major shareholders try their best to sell the shares in the secondary market as soon as they go public, the stock price will inevitably collapse.
If major shareholders pledge their shares to brokers as soon as they go public and cash out for their own enjoyment, the stock price will not be maintained.
The major shareholders are like the generals who defend a city. They must always give the officers and soldiers of the army, as well as the people, the belief that "people are in the city," so that everyone can fight the enemy bravely with the generals.
Several state-owned securities firms are somewhat wary of the valuation of US$450 billion.
First, the price is too high;
Second, the risk is indeed quite high;
Third, there has never been such a large-scale IPO.
When Alibaba went public, the IPO scale of more than 200 billion was already a record-breaking size. Now Makino Technology is directly opening at a high of 450 billion US dollars. The tone is set too high.
If a brokerage wants to seize such a large-scale IPO, it must first help Makino Technology raise US$45 billion in funds. Failure to raise funds is pure nonsense.
Li Mu said to them: "Everyone, once you undertake the IPO of Makino Technology with a scale of US$450 billion, I believe that a large number of customers will come to you to subscribe for Makino Technology's shares. You think the scale of US$45 billion is very big. But the market reaction will definitely make you realize that this is a very easy task."
The person in charge of the lead underwriter was a little unsure and said: "Mr. Li, I have been doing IPOs for several years, and the fund-raising scale of your company's IPO is higher than the scale of the companies I have done in the past two years combined. You Can I not be nervous?"
Li Mu smiled and said: "This is a good thing. I finally have the opportunity to do something big. It is much better than doing IPOs for dozens of companies with a market value of hundreds of millions of US dollars and 2 to 3 billion Hong Kong dollars every year."
After a pause, Li Mu continued: "To be honest, the bigger the company is when it IPOs, the more stable its performance will be after listing. Those small companies that rely on concepts and popularity can see their stock prices skyrocket today. 50%, tomorrow it may drop 90% in one day!”
"There are many companies that are clearly seeking to make money by going public, but there are still underwriters who will help them with IPOs. If you missed something as big as Makino Technology's IPO, you may not be able to participate in such a big deal again in the next twenty years. Project Opportunities.”
The other party nodded slightly and said: "That's indeed the truth, but the price is really too stressful for us..."
Li Mu smiled and said: "The Goldberg family behind HSBC in the UK has been rushing to take over the IPO of Makino Technology. I even withdrew the IPO from the US stock market, but they still refused to give up. The head of their family is still in Yanjing. He has been living in a hotel for more than half a year. He wants to see me, but I just can’t see him. There are two reasons. First, the things they did with the Wall Street gang really made me feel a little sick; second, , I deliberately kept him dry until the day he accepted what I said."
Speaking of this, Li Mu said again: "By the way, this guy has always respected me. He even gave me a club in the Premier League. I didn't prepare for the IPO of Makino Technology and I didn't give him any meat, so I temporarily I want to give him a share of US$10 billion from the US$45 billion raised by the IPO. If you think that you, the securities firms, together, it is still a bit difficult to raise US$35 billion, we still have We can talk again, I believe that even if 45 billion is given to the Goldberg family, they will agree without hesitation."
After Li Mu finished speaking, he glanced at everyone and said seriously: "However, I want to explain to everyone why I withdrew Makino Technology from the US stock market. I just don't want these Wall Street bosses to enjoy this capital feast."
"So, I want to put it in Hong Kong, because no matter what, Hong Kong is an integral part of China. Makino Technology's listing in Hong Kong means that the money will not flow to outsiders."
"But if everyone thinks this piece of meat is too big and can't finish it, eat it, or digest it, then I can only put this piece of meat in Hong Kong and let the Wall Street giants come to eat it from across the country."
"In that case, there will be no loss to Makino Technology. I will still sacrifice 10% of my shares to raise US$45 billion in funds. The only difference is who will help me raise the money. However, for everyone here, This loss will be huge. Once you let the market see that you are incapable of swallowing big chunks of meat, or even swallowing big chunks of meat at your doorstep, then even companies that come to Hong Kong for IPO will not be able to do so. If I ask you to be the lead underwriter, it is very likely that I will choose a securities firm with a British background or an American background, and then everyone will be instantly passive!"
(End of chapter)