Empire Rising: Spain

This amount of money is certainly not much for Carlo, but for the nobility, it’s still a lot. The new nobility, owing to their lack of substantial landholdings, depend entirely on industry and finance for their income.

This also makes Carlo place great importance on this initial public offering (IPO). If the stock of this railway company rises significantly, it means these new nobles can also profit, enriching their family wealth.

Both the new and old nobility are Spanish nobles, but because the new nobility was personally appointed by Carlo, he clearly has a closer relationship with them.

Of course, this might also be because the new nobility poses no threat to Carlo and instead serves as significant support.

The old nobility’s foundational strength in Spain is too powerful, and sometimes they don’t necessarily follow Carlo’s commands. Compared to the less obedient old nobility, Carlo trusts the obedient new nobles more, even if they don’t hold much power.

The prerequisite for being a good ruler is ensuring that those who follow you can share in certain benefits. Even if you’re eating the meat while they drink the soup, they must at least be able to drink.

This IPO of the railway company is actually a gift from Carlo to certain new nobles. These new nobles received the news in advance; as long as they purchase shares of this railway company, they’re unlikely to lose money.

Of course, even if they can’t buy shares directly because some securities companies had already pre-subscribed, the new nobility can still get a portion of the shares eventually.

It may not be much for the old nobility, but for the new nobility, it represents a considerable income, allowing them to lead a more affluent life and pursue more luxurious consumption.

After all, they are nobles, and Carlo does not wish for them to live lives indistinguishable from commoners. The Spanish public has more ways to become new nobles, which is also a major strategy for Carlo to attract loyalty from Spaniards.

If the new nobility doesn’t live well, Spaniards naturally won’t have much interest in becoming new nobles.

This also means that the life of the new nobles must be good, ensuring a significant gap between them and the commoners.

After all, they are nobles too; if they can’t afford any luxury goods, how can they still be considered nobles?

This IPO is also very important for the railway company itself. Going public can raise at least 10 million Pessetas in funding, ensuring the railway company won’t lack project funds for a long time to come.

As long as genuinely capable railway companies secure financing, the development of Spain’s railways will not fall behind.

Even if a railway company goes bankrupt due to poor management, the Royal Family and the Spanish Government can take over, ensuring that Spain’s railway plans remain unaffected.

The railway companies might worry about the returns from railway construction, but for Carlo and the Spanish Government, the direct profits from railways are less important.

Even if building railways incurs losses, Carlo is still willing to proceed because railways drive the development of other industries, and the increased tax revenues from these growing industries are also potential benefits of railways.

As the saying goes, to get rich, build roads first. And railways, of course, are a type of road and exceptionally important in this era.

Railway construction can also facilitate the Spanish army’s arrival in various regions, which is crucial for strengthening national stability.

Of course, there are also political benefits. This region has more developed railways, while that region doesn’t enjoy much railway coverage. Wouldn’t this make the citizens deprived of railway convenience angry?

Although it’s impossible to make everything perfectly balanced, it is crucial to ensure that some important cities are linked by rail, and this is why Spain continues to build more railways.

If one only considers the demand from Spain’s major cities for railways, the current scale of railways is already adequate for the Spanish public.

The capitals of all major regions are connected by railway, and several important cities also fall within the railway coverage area. Such railway construction is, if not among the best, certainly quite extensive.

Because the potential benefits from railway construction are enormous, many countries are willing to proceed, even if it’s unprofitable.

Even if operating a segment of railway continuously incurs losses, some countries will persistently allocate funds to keep it running.

Because Carlo places great emphasis on the development of the stock market, around four in the afternoon, the stock market data was submitted to the Royal Palace.

Steward Loren, carrying the stock market data from the two major stock exchanges, approached Carlo with a smile to report the good news: "Your Majesty, the stock prices of the two railway companies listed in Madrid and Barcelona have both increased by over 30%.

Among them, the railway company’s stock at the Madrid Stock Exchange has risen by 36.7%, with the closing price per share reaching 13.67 Pessetas.

The stock price of the railway company listed on the Barcelona Stock Exchange has even surged by 41.2%, with the per-share price before the close reaching 7.06 Pessetas."

Carlo was a bit surprised at the increase in stock prices.

Although a rise in the new stocks’ prices was expected, such a dramatic surge seemed unlikely.

After all, the stock issuance was substantial, with the small-scale railway company in Barcelona alone issuing 2 million shares worth a total of 10 million Pessetas.

Though only about half of the stocks were actually in circulation, it’s unlikely they were all bought up in such a short time.

Under normal circumstances, stock prices shouldn’t grow so dramatically until all issued stocks are sold out. This suggests the railway company’s stocks might have been entirely sold out. Do Barcelona’s investors have such strong purchasing power? Or was there involvement from other financial interests?

Spaniards can see the potential in the Spanish Railway Company’s growth, and surely, so can capital.

Investing in railways is a highly lucrative business, so it’s not surprising that some foreign capital might join in.

Judging by the rate of increase in the railway companies’ stock prices, it’s likely that foreign capital has had an influence.

"According to news from the Barcelona Stock Exchange, some unidentified French nationals have purchased a large quantity of stock," Steward Loren said with a smile: "The participation of the French has led to our stocks selling out quickly, and some investors are willing to pay extra to purchase shares, resulting in a significant short-term increase in our stock price."

Hearing about the participation of the French, Carlo’s doubts quickly dissipated.

French capital is indeed powerful, and with the economic cooperation between Spain and France, the inflow of French capital into Spain isn’t surprising.

Moreover, particularly given the attention Spain’s third Five-Year Development Plan is receiving, it’s no wonder French capital has its eyes on the Spanish Railway Company.

Of course, for Carlo, this is a favorable development. The higher the railway companies’ stock prices, the more gains Carlo can secure. Those new nobles and other businesses joining in for profit will naturally benefit more as well.