Chapter19 Financing
The registration of the company was finalized and the signing of the contract was quickly settled. In addition to the fixed remuneration, Huaisen’s dividend was 1.5% of the financing amount. If 100 billion were raised, 150 million would go into the pockets of Zhao Tingjie and Shen Dongzhi. Considering the scale of this case it's a very generous amount, no wonder Zhao Tingjie came to bid in person.
After talking about the remuneration and financing. They talked about financing and listing, which shows how important financing is.
In this regard, Huaisen also put forward his own request, that is, not to engage in round a, b and round c financing, and directly integrate it at once.
This request even more affirmed Shen Dongzhi's doubts. There must be something wrong with Huaisen. The reason for the direct round of integration is that he can't wait.
——Financing takes time. After all, the investor is not a fool. You have to read clearly before signing a contract. This is a tug of war between the investor and the company.
After working with Hancheng for two years, Shen Dongzhi can be considered a beginner in investment. The difference between financing and investment can be summed up in one sentence. Investment means you give money to others, and financing means you ask others for money.
As for the essence of financing, it is also very simple. Investors exchange low-cost investments for your company’s shares, and then sell these shares at high prices when you go public.
The process of financing and listing can be simplified into the following three steps.
1. Financing means that the enterprise and the investor intervene with each other, and the investor exchanges investment for shares of the enterprise.
Second, use the raised funds to carry out various rectification and adjustments to the company, including share rectification, financial inspection, management reform, expansion of business scale, etc., so that the company meets the standards of a listed company.
Third, after the company is rectified and reformed, they will need to prepare various materials, and then take these materials to pass the audit of the China Securities Regulatory Commission before listing.
Of course, there is the last step, the company completes the listing, and the investor and the company sit down and share the money.
As for how to disrupt the listing of Huaixing?
The process of listing looks simple when you sum up, but there are many details and difficulties in the actual process. There are no less than ten things that can disrupt the financing alone, so what she and Han Cheng have to do is to take one step at a time.
*
At the end of the 28th, the second investment conference of Huaixing Technology’s listing case was held at the headquarters of Huai Sen. It was presided over by Zhao Tingjie, Chairman of Ruilin Capital. Sheng Huaixuan, Executive President of Huai Sen Investment Group, attended the meeting fund
Huaisen is a powerful group. As soon as the news of preparing for financing and listing was released, many investors called to make appointments. Zhao Tingjie and Shen Dongzhi first contacted Keju Fund after communicating.
——Investment can be divided into main investment and follow-up investment. With the strength of Keju, it can completely make a main investment.
The content of today's meeting is very straightforward, namely to discuss about the amount of investment.
Looking at the entire conference room, the participants were presented with a business plan in front of them. This business plan came from the listing team of Ruilin Capital and the main content was to value Huaixing.
The current popular valuation method is the price-earnings ratio, which is the price divided by the profit. Huaixing intends to list on the GEM. The average price-earnings ratio of listed companies on the GEM is now 9. That is to say, if your company made 100 million profit last year, Then your valuation is 900 million.
Of course, if you have not yet been listed, the investor will definitely not be able to give you 9 times. About 8 times to 1 time is very good. Otherwise, how can investors make money?
In this business report, Huaixing’s profit last year was 200 million, so this time Huaixing’s goal is to exchange 45% of the shares for a total of 200 million in financing.
Of course, it is impossible for Keju to eat all of these shares. Today's talk is aimed at letting Keju invest 1.2 billion and sell them 27% of the shares.
The person in charge of Keju is a 40-year-old strong woman, whose surname is Wei, who is sharp and direct, and directly stated that the maximum amount they can accept is an investment of 900 million in exchange for 27% of the shares.
Zhao Tingjie is not in a hurry about this. From the corporate value evaluation department to the current explosive power of the technology industry, the central idea is one.
Huaixing's prospects are very good.
The manager Wei on the other side did not show any weakness: "Mr Zhao, you have revealed your intention to invest in the amount of money when you talked to us before, so we are here today with 100% sincerity, but considering that the technology market is becoming saturated, This is the maximum price we can give."
After talking about the remuneration and financing. They talked about financing and listing, which shows how important financing is.
In this regard, Huaisen also put forward his own request, that is, not to engage in round a, b and round c financing, and directly integrate it at once.
This request even more affirmed Shen Dongzhi's doubts. There must be something wrong with Huaisen. The reason for the direct round of integration is that he can't wait.
——Financing takes time. After all, the investor is not a fool. You have to read clearly before signing a contract. This is a tug of war between the investor and the company.
After working with Hancheng for two years, Shen Dongzhi can be considered a beginner in investment. The difference between financing and investment can be summed up in one sentence. Investment means you give money to others, and financing means you ask others for money.
As for the essence of financing, it is also very simple. Investors exchange low-cost investments for your company’s shares, and then sell these shares at high prices when you go public.
The process of financing and listing can be simplified into the following three steps.
1. Financing means that the enterprise and the investor intervene with each other, and the investor exchanges investment for shares of the enterprise.
Second, use the raised funds to carry out various rectification and adjustments to the company, including share rectification, financial inspection, management reform, expansion of business scale, etc., so that the company meets the standards of a listed company.
Third, after the company is rectified and reformed, they will need to prepare various materials, and then take these materials to pass the audit of the China Securities Regulatory Commission before listing.
Of course, there is the last step, the company completes the listing, and the investor and the company sit down and share the money.
As for how to disrupt the listing of Huaixing?
The process of listing looks simple when you sum up, but there are many details and difficulties in the actual process. There are no less than ten things that can disrupt the financing alone, so what she and Han Cheng have to do is to take one step at a time.
*
At the end of the 28th, the second investment conference of Huaixing Technology’s listing case was held at the headquarters of Huai Sen. It was presided over by Zhao Tingjie, Chairman of Ruilin Capital. Sheng Huaixuan, Executive President of Huai Sen Investment Group, attended the meeting fund
Huaisen is a powerful group. As soon as the news of preparing for financing and listing was released, many investors called to make appointments. Zhao Tingjie and Shen Dongzhi first contacted Keju Fund after communicating.
——Investment can be divided into main investment and follow-up investment. With the strength of Keju, it can completely make a main investment.
The content of today's meeting is very straightforward, namely to discuss about the amount of investment.
Looking at the entire conference room, the participants were presented with a business plan in front of them. This business plan came from the listing team of Ruilin Capital and the main content was to value Huaixing.
The current popular valuation method is the price-earnings ratio, which is the price divided by the profit. Huaixing intends to list on the GEM. The average price-earnings ratio of listed companies on the GEM is now 9. That is to say, if your company made 100 million profit last year, Then your valuation is 900 million.
Of course, if you have not yet been listed, the investor will definitely not be able to give you 9 times. About 8 times to 1 time is very good. Otherwise, how can investors make money?
In this business report, Huaixing’s profit last year was 200 million, so this time Huaixing’s goal is to exchange 45% of the shares for a total of 200 million in financing.
Of course, it is impossible for Keju to eat all of these shares. Today's talk is aimed at letting Keju invest 1.2 billion and sell them 27% of the shares.
The person in charge of Keju is a 40-year-old strong woman, whose surname is Wei, who is sharp and direct, and directly stated that the maximum amount they can accept is an investment of 900 million in exchange for 27% of the shares.
Zhao Tingjie is not in a hurry about this. From the corporate value evaluation department to the current explosive power of the technology industry, the central idea is one.
Huaixing's prospects are very good.
The manager Wei on the other side did not show any weakness: "Mr Zhao, you have revealed your intention to invest in the amount of money when you talked to us before, so we are here today with 100% sincerity, but considering that the technology market is becoming saturated, This is the maximum price we can give."
The two sides persisted, and the meeting room fell silent. Shen Dongzhi quietly played with the pen in her hand while digesting the conversation between the two.
Because the meeting involved the operation of Huaixing, mobile phones and other electronic devices were not allowed, but what they didn’t know was that a small bug was tied to the inner thigh of Shen Dongzhi. Now Hancheng is in Chengyang’s office listening to the meeting in real time.
Finally, when he knocked the table for the hundredth time, Shen Dongzhi heard his voice in her ears.
"Tell Keju, you need to reserve a 6% option pool."
-Option pool, that is, the company's reserved equity for senior management, so that senior executives in Huaixing can buy Huaixing at a very low price Shares are a way to attract and retain talents.
"Ms. Wei, we can accept the price you mentioned, but it is more appropriate to adjust the corresponding shares to 21%. You also know that Huaixing is a technology company, and now it is difficult to find high-end technology talents. We have to reserve some management options. And after the financing, Huaixing will further expand the scale and introduce new management personnel. For the sake of the company’s fresh blood, I hope you can understand us."
"This is Miss Lin, I have heard about the name of ast investment bank today. At first sight, it is impressive, but since you know that the option pool has a significant impact on the funding price, and you know that most companies will reserve the option pool before financing. We are investors and we should not pay for the option pool."
Shen Dongzhi Laughing: "Ms. Wei, you made a mistake. Most investors require companies to reserve beforehand, but since you have the willingness to cooperate, you will become a family in the future. You should share corporate responsibilities. Why do you have to divide it so clearly?
Shen Dongzhi's words were tight and the Ms Wei's face was very bad, but negotiation is like this, and it's not a door-to-door call for a birthday.
There was silence for a moment.
"Ms. Wei, Huaixing is willing to give another 1%, 900 million and 22% of the shares, while the option pool is solely borne by Huaixing."
During the subsidiary's listing round negotiations, the group president can come forward throughout the process, it is really important and gives Keju a little bit of face. Now that Sheng Huai opened his mouth, Ms. Wei couldn't say anything else, only that they needed to go back and discuss about it again.
The meeting ended here, and everyone left. Soon there were only three people left in the conference room. Sheng Huaixuan's face looked exhausted. As soon as he reached out and pinched his eyebrows, a call came in.
He went out to answer the phone, Zhao Tingjie got up and walked in front of Shen Dongzhi, smiling with his hands at the corners of his mouth, and the tall figure covered Shen Dongzhi.
"Ms. Lin listened very seriously?"
Shen Dongzhi smiled: "Of course, I still want my father to also vote for a share."
"How much is Miss Lin going to vote?" Zhao Tingjie leaned down and put one hand on the chair and the other ambiguously stroked her thighs, as if trying to reach between her legs.
"I'll vote as much as Mr Zhao plans to vote."
Shen Dongzhi said, "What about keju ?" "Beauty shouldn't worry about it, Huai Xuan will have a way." When the voice fell, Sheng Huai ended the phone call, entered the conference room and Han Cheng, who was monitoring on the other end, frowned. Only Zhao Tingjie easily got up, buttoned up his suit and left.
*
Three days later, in Hancheng's office, Shen Dongzhi walked back and forth with scented tea, thinking about how Sheng Huaixuan did it. What benefits did he give Keju?
——As Zhao Tingjie said, Sheng Huaixuan actually solved the matter. Yesterday, Keju called and said that he agreed to exchange 100 billion investment for 23% of the shares, which was even higher than what they discuss at the meeting.
Shen Dongzhi was deeply puzzled about this, but fortunately, Sheng Huaixuan soon contacted her.
Two weeks later, the two sides will carry out the next step. Before that, in order to celebrate the successful investment negotiation, Sheng Huaixuan invited her and Zhao Tingjie to a resort center.
********
GEM: Growing equity mortgage/loans
I'll be releasing 2-3 times a week from now on. If you like what I do, consider supporting me on ko-fi
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Because the meeting involved the operation of Huaixing, mobile phones and other electronic devices were not allowed, but what they didn’t know was that a small bug was tied to the inner thigh of Shen Dongzhi. Now Hancheng is in Chengyang’s office listening to the meeting in real time.
Finally, when he knocked the table for the hundredth time, Shen Dongzhi heard his voice in her ears.
"Tell Keju, you need to reserve a 6% option pool."
-Option pool, that is, the company's reserved equity for senior management, so that senior executives in Huaixing can buy Huaixing at a very low price Shares are a way to attract and retain talents.
"Ms. Wei, we can accept the price you mentioned, but it is more appropriate to adjust the corresponding shares to 21%. You also know that Huaixing is a technology company, and now it is difficult to find high-end technology talents. We have to reserve some management options. And after the financing, Huaixing will further expand the scale and introduce new management personnel. For the sake of the company’s fresh blood, I hope you can understand us."
"This is Miss Lin, I have heard about the name of ast investment bank today. At first sight, it is impressive, but since you know that the option pool has a significant impact on the funding price, and you know that most companies will reserve the option pool before financing. We are investors and we should not pay for the option pool."
Shen Dongzhi Laughing: "Ms. Wei, you made a mistake. Most investors require companies to reserve beforehand, but since you have the willingness to cooperate, you will become a family in the future. You should share corporate responsibilities. Why do you have to divide it so clearly?
Shen Dongzhi's words were tight and the Ms Wei's face was very bad, but negotiation is like this, and it's not a door-to-door call for a birthday.
There was silence for a moment.
"Ms. Wei, Huaixing is willing to give another 1%, 900 million and 22% of the shares, while the option pool is solely borne by Huaixing."
During the subsidiary's listing round negotiations, the group president can come forward throughout the process, it is really important and gives Keju a little bit of face. Now that Sheng Huai opened his mouth, Ms. Wei couldn't say anything else, only that they needed to go back and discuss about it again.
The meeting ended here, and everyone left. Soon there were only three people left in the conference room. Sheng Huaixuan's face looked exhausted. As soon as he reached out and pinched his eyebrows, a call came in.
He went out to answer the phone, Zhao Tingjie got up and walked in front of Shen Dongzhi, smiling with his hands at the corners of his mouth, and the tall figure covered Shen Dongzhi.
"Ms. Lin listened very seriously?"
Shen Dongzhi smiled: "Of course, I still want my father to also vote for a share."
"How much is Miss Lin going to vote?" Zhao Tingjie leaned down and put one hand on the chair and the other ambiguously stroked her thighs, as if trying to reach between her legs.
"I'll vote as much as Mr Zhao plans to vote."
Shen Dongzhi said, "What about keju ?" "Beauty shouldn't worry about it, Huai Xuan will have a way." When the voice fell, Sheng Huai ended the phone call, entered the conference room and Han Cheng, who was monitoring on the other end, frowned. Only Zhao Tingjie easily got up, buttoned up his suit and left.
*
Three days later, in Hancheng's office, Shen Dongzhi walked back and forth with scented tea, thinking about how Sheng Huaixuan did it. What benefits did he give Keju?
——As Zhao Tingjie said, Sheng Huaixuan actually solved the matter. Yesterday, Keju called and said that he agreed to exchange 100 billion investment for 23% of the shares, which was even higher than what they discuss at the meeting.
Shen Dongzhi was deeply puzzled about this, but fortunately, Sheng Huaixuan soon contacted her.
Two weeks later, the two sides will carry out the next step. Before that, in order to celebrate the successful investment negotiation, Sheng Huaixuan invited her and Zhao Tingjie to a resort center.
********
GEM: Growing equity mortgage/loans
I'll be releasing 2-3 times a week from now on. If you like what I do, consider supporting me on ko-fi
PREVIOUS
NEXT
Thanks for the translation!!
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