Reborn multinational giant

In July, it took more than three months to gather hundreds of elites from the six major investment banks. From due diligence to valuation calculations to the orderly preparation of the prospectus, Huizhong’s listing work has finally entered a new stage. Introduce cornerstone investors.

The so-called cornerstone investors refer to some large investors or investment institutions that the company has negotiated in advance before the official listing, and signed a subscription agreement with them in advance. After the company is officially listed and issued shares, these investors will purchase in accordance with the subscription agreement. A corresponding number of stocks, and set a certain period of restricted sales to ensure the smooth issuance of the company's stocks.

In layman’s terms, cornerstone investors are the big buyers and ballast stones of the company’s listing and issuance of stocks. They will not only lock in the purchase of a large amount of stocks in advance, but also stabilize the stock price, relying on their strong credibility and market influence Power, calling on common stockholders and investors to actively buy.

Therefore, investors who can assume the identity of cornerstone investors are basically companies or institutions with strong influence in the financial industry or the stock market.

In order to attract powerful investors as their cornerstone investors for a smooth listing, a general company usually sets a discount price lower than the official issue price to attract investors.

Even some companies that have not yet made a profit and continue to lose money are listed. It is possible that the discount price for cornerstone investors is 50-60% or even 70% lower than the official issue price. Many investors are also happy to see this situation. It does not matter if the company loses money. , As long as you can cash in profit after the restriction period, it doesn’t matter who you cut the leeks.

Compared with these companies that are rushing to go public and cash out leeks, the number of cornerstone investors in Huizhong's listing is like a feast for crows, attracting many private equity funds, investment institutions, and multinational consortia around the world to compete for it.

From major investment banks such as Citi, Goldman Sachs, and Morgan Stanley, to investment companies and private equity funds such as Softbank, Sequoia, and Quantum Funds, to top multinational companies such as Google, Buffett's Berkshire Hathaway, the Saudi royal family, and Russia The richest man and all kinds of investors have expressed a strong desire to serve as the cornerstone investor of Huizhong's listing.

The quota of Huizhong's cornerstone investors attracts investors with good money from all over the world, just like Xiangfu. The reason for this phenomenon is simple, because they are very optimistic about Huizhong's future development potential and are optimistic about Huizhong's listing. After the stock upside.

The sooner you buy Huizhong’s stock, the greater the profit potential in the future. Huizhong has only raised funds once since its inception. At that time, investors such as Apple and SoftBank, which took Huizhong’s stock, have been holding Huizhong’s stock firmly. Holding it in my hand, I haven't considered selling it at all. Other greedy investors want to buy Huizhong's stocks.

Although investors can buy Huizhong’s shares from the public secondary market after Huizhong’s official listing, but if you start at that time, how can you make more money by buying as a cornerstone investor and at a price? Therefore, Huizhong's introduction of cornerstone investors this time has become a sweet pastry for major investment institutions to compete.

On the evening of July 23, at the Yanjing Wanda Vista Hotel banquet hall, Fang Zhe and representatives from major investment institutions around the world gathered together and laughed.

Even Fang Zhe himself did not expect that the introduction of cornerstone investors is only a small part of Huizhong’s listing process, but as representatives of major investment institutions around the world came to Yanjing one by one, several VIP rooms of Huizhong disappeared. After being idle, it has seriously delayed the energy and normal work of some of the senior executives in Huizhong responsible for reception.

Fortunately, Fang Zhe directly organized a reception team to arrange for these representatives to live in Yanjing, or inspect or play, until today he and several senior executives of Huizhong met with them.

Fang Zhe, whose coquettishes were staggered, pushed the cup to change, and his arms were a little sour from socializing, and Zheng Siwen, who was also busy socializing in the distance, gave a wink, and the two of them slipped out of the banquet hall one after another.

Seeing Zheng Siwen sneaking out behind him, Fang Zhe vomited: "This scene, people who don't know think we are already on the road show!"

Zheng Siwen replied with a sympathetic smile, leaned forward a few steps on the balcony and the wind was blowing, and asked: "How is it, do you have answers to the last three in your heart?"

The last three companies mentioned by Zheng Siwen refer to the last three places for cornerstone investors. Prior to this, he, Fang Zhe and Huizhong’s core executives had already met and agreed on the places for cornerstone investors.

They have set a total of 7 places. Except for 4 of which have been confirmed, the last three will be decided after the banquet tonight.

Fang Zhe shook his head depressed, and sighed, "Oh, I have a headache. When my company goes public, I am looking for a strong investor to be the cornerstone investor. It's not good. I only wanted to pick a few, but suddenly A lot of them have come, making me have choice difficulties!"

"Come on, you have to be heard by other companies. You have to be furious." Zheng Siwen cursed with a smile, then nodded noncommittal, and said:

"Now every company has a pretty good plan. Several companies have promised to purchase more than US$1 billion. There are also a few companies that don't care if we have a discount, as long as we can buy it at the issue price.

I calculated it, just adding up the amount promised by these institutions is close to our estimated total amount of fundraising. If it weren't for the proportion of publicly issued stocks, I would just like to sell them directly!"

Fang Zhe spread his hands and said: "Who said no, but you always have to consider common stockholders and investors, or how could the US Securities Regulatory Commission allow us to go public."

The two smiled helplessly, and then returned to the banquet hall to entertain.

For other companies to go public, they only think that the cornerstone investors have promised to buy not enough stocks. They are afraid that no one will buy the stocks after the listing and they will fall below the issue price. But for Huizhong, Fang Zhe and Zheng Siwen have a headache. The cornerstone investors of China want to buy a lot, but Huizhong does not have that many stocks to sell to them.

Fang Zhe was wondering whether he and the investment banking elites underestimated the potential and attractiveness of Huizhong. Otherwise, why do these capitalists who are not bad at money want to buy Huizhong's stock?

Fang Zhe and the investment banking elites indeed underestimated the potential of Huizhong. You must know that since the birth of the Internet, there has never been a software or product like WeChat. Whether it is in the East or the West, whether it is a developed or developing country, Eat the global market.

If you have to find a product that takes the world as WeChat and has a high market coverage, then only Microsoft’s Windows operating system can be considered, and the windows operating system, as well as two very famous operating systems, mac and linux. Competitors, but WeChat, investors can hardly find them.

In the early morning of August 8, Huizhong formally submitted a prospectus to the U.S. Securities and Exchange Commission. In this prospectus, Huizhong not only disclosed Goldman Sachs, Berkshire Hathaway and other seven cornerstone investors, but also It disclosed the overall performance of Huizhong for the whole year of 2012 and the first quarter of 2013, and disclosed the estimated financing scale of Huizhong's listing, stock code HZ and listing location, NYSE!

When Huizhong’s prospectus was released to the public, investors from all walks of life, stockholders, Internet people, news media, and various netizens all over the world gathered their eyes on this one with simplified Chinese, traditional Chinese, and English. On the prospectus for translations in 12 languages ​​including Spanish and French!