Chapter 492 Capital Boom, Pinbei Takes the Lead, Estimated Market Value of 88 Billion US Dollars!

The next morning, Chen Yansen took Song Yuncheng to the Penguin headquarters. They drank a pot of tea in Xiao Ma's office and had lunch. Then they drove to the airport and flew directly to Luzhou.

At the same time, Lei Yijun announced that he had completed his fourth round of financing on October 8, led by DST Capital, with participation from Qiming, Temasek and Qualcomm, and his valuation exceeded US$10 billion.

Subsequently, Chen Ou of Jumei announced on Weibo that he would submit an IPO application to Nasdaq in late October and planned to go public in the United States.

All these actions are due to the fact that Vipshop’s market value in the U.S. stock market has exceeded 10 billion U.S. dollars.

This number shocked Chen Ou, Liu Qiangdong and Ma Liyun greatly.

After all, in their view, Vipshop can barely be considered the second tier of China's e-commerce. Even such a product can get a market value of tens of billions of US dollars, which shows that overseas investors have extremely high expectations for China's e-commerce industry.

The opportunity during the market bonus window period is rare and no one wants to miss it!

Especially at a time when competition in the e-commerce sector is becoming increasingly fierce, listing financing can not only quickly replenish "ammunition", but also use the power of capital to widen the gap with competitors. No one is willing to fall behind.

Chen Ou is thinking of using an IPO to establish the company as the "first listed beauty e-commerce company," while Liu Qiangdong is planning to use financing to accelerate the construction of the logistics system. Although Ma Liyun has not said it explicitly, he is also secretly planning overseas business in an attempt to further expand Ali Baba's territory.

The entire industry is swept up in this capital boom!

My mind is full of thoughts of "going public", "raising money" and "achieving financial freedom".

Huang Zheng had already set foot on the land of New York one step ahead, and under the operation of Goldman Sachs Capital, he packaged Pinbei into "China's first social e-commerce stock."

In addition, the founder of Pinbei is the new world's richest man, which further ignited the enthusiasm of North American investors.

On Wall Street, there is even a group of stock managers who specialize in studying Chen Yansen and Sunlink Capital.

Many investment institutions are gearing up to raise funds and prepare to subscribe to Pinbei's depositary shares.

A total of 220 million shares, priced at US$34 per share, accounting for 10% of Pinbei’s total share capital, and expected to raise US$7.48 billion.

The cake is only this big!

The five major underwriting institutions, including Goldman Sachs, Credit Suisse and Morgan Stanley, did not give any chance to the outside world at all and divided up the 220 million depositary shares.

Although Pinbei's market share is not as large as Ali Baba's, it has stimulated the subscription enthusiasm of North American investment institutions.

What they are interested in is not only the unique model of Pinbei's "social e-commerce", but also the business empire of its founder Chen Yansen.

From Orange Technology's hardware ecosystem to the traffic pools of Toutiao, Lingxi Browser and Lingxi Search, as well as the global influence of Deep Blue Battery, every step is reflected in precise strategic vision.

This combination of "founder endorsement + model innovation" makes many institutions feel that even if Pinbei's current market share is slightly lower, its future growth potential is no less than that of Ali Baba.

What's more, Pinbei's user growth rate and conversion rate have always been at the forefront of the industry. These two points alone are enough to support the imagination of a high valuation.

Therefore, those investment institutions that failed to grab shares turned to the secondary market, intending to wait for Pinbei to go public before buying, for fear of missing out on this "China Wealth Train" that was hotly discussed on Wall Street.

For a time, Huang Zheng became a hot commodity in the capital circle of the Beacon Country.

He took Pinbei's finance, legal and roadshow teams from New York, traveling to Boston, Chicago, and then to the West Coast.

In the morning, I was at JPMorgan Chase headquarters, and at noon I had to rush to BlackRock to attend a lunch investment meeting, and then to Tiger Fund in the afternoon.

The PPT used in the roadshow covered Pinbei’s unit economic benefits, technological barriers, unique competitive advantages, and visual data dashboards.

After a few days of practice, Huang Zheng can already explain some of the content without a script.

Facing questions and criticisms from major investment institutions, Huang Zheng was very well prepared and remained calm throughout the process, without any negative impact on the roadshow.

Old Huang worked tirelessly in the Lighthouse Country, busy with social engagements all day long, while Chen Yansen moved into a villa in Baohe District, Luzhou, and lived a leisurely vacation life under the pretext of a business trip.

A year ago, at his instruction, Gao Weilin bought a total of five villas in Luzhou, and this villa was the first one that Mr. Chen moved into.

He had given Mengjie the key to a villa, but she had never lived there.

Chen Yansen was sitting on the sofa with a computer on his knees. He had just finished a video conference with Huang Zheng.

Pinbei's listing process was much smoother than he had imagined.

Goldman Sachs and Morgan Stanley suggested raising the issue price to US$40 per share because existing subscription orders have covered 13 times the issue volume and demand is insufficient to meet supply!

Only by raising prices can the true value of Pinbei be reflected!

In other words, once the premium offering is successful, based on the opening price, Pinbei's market value on the first day will be as high as 88 billion US dollars.

This is four times the valuation of JD.com and eight times the market value of Vipshop!

Based on his 68.8% shareholding, his net worth will exceed US$60 billion just from Pinbei.

There is no way. Although Pinbei’s valuation is not high, his shareholding ratio is really too high.

Just like Penguin, although its market value is as high as 100 billion US dollars, Ma Wenteng's shareholding ratio is only 10.2%, so his net worth is only tens of billions of US dollars.

Pinbei's development speed is too fast. From its establishment to IPO, it took no more than three years, and it is estimated to take 28 months.

This also broke the fastest speed for Chinese companies to go public in the United States!

Of course, five years later, Lu Zhengyao, known as the "Fast Boy", was even more outrageous.

It took only 17 months for Luckin Coffee to go from its trial run to its official listing on the Nasdaq in May 2019.

His trading ability is evident!

Chen Yansen thought for a moment, threw away the computer, picked up a set of Ultraman hollow Cosplay costumes from the sofa next to him, and walked upstairs.

…

…

The next morning, Luzhou International Convention Center.

A huge advertising banner was hung at the entrance: 2013 Orange Technology Autumn New Product Launch Conference - Let Technology Change Your Life!

The parking spaces on the ground are now full, and more than 90% of them are luxury cars with a landing price of millions, mixed in with a few Hongqi, Audi and Coaster.

In terms of price, these cars are definitely not as good as the Mercedes-Benz, BMW and Ferrari next to them.

But when they saw the license plate, everyone's first reaction was to take a step back, for fear of accidentally scratching the paint on the car.

Chen Yansen was standing at the door. When he saw Meng Yuanzhi and Tao Jingwen, he hurried over to greet them: "Mr. Meng, welcome!"

"I arrived half an hour early on purpose. This is Orange Technology's first press conference in Luzhou, and I got to witness the launch of the Tiangong A100 chip with my own eyes."

Meng Yuanzhi said with a smile.

Logically speaking, Orange Technology’s current headquarters is still in Xucheng, and this new product launch conference should also be held in Xucheng.

However, after learning that the Tiangong A100 chip would be announced at this press conference, Meng Yuanzhi promised Xu Zhenhui some benefits and forcibly changed the venue of the press conference to Luzhou.

"I prefer to look at sales." Chen Yansen shrugged and joked naturally.

Tao Jingwen stood behind Meng Yuanzhi and looked at Chen Yansen deeply. He had always overestimated the value of Senlian Capital, but in the end he found that he had underestimated the other party's rise.

He appeared on the 7 o'clock news twice, and Li Qingsong visited in person. He was the world's richest man in 2013, the owner of the lithium-sulfur battery patent, and his net worth exceeded 100 billion US dollars.

Any title given to a person is enough to make him the focus of everyone's attention.

And now, all these titles fall on Chen Yansen alone.

As Meng Yuanzhi's chief secretary, Tao Jingwen has seen countless geniuses, but these people are not even worthy of carrying Chen Yansen's shoes.

"Are you worried about not being able to sell a good product? I believe in Orange Technology's R&D capabilities, and I also believe in your ability."

Meng Yuanzhi praised without hesitation.

"Mr. Meng, you are too kind. Please come in!"

Chen Yansen raised his hand and led Meng Yuanzhi and others to the 2,500-square-meter super-large conference hall, and then walked to the first row and sat down.

As soon as he settled Meng Yuanzhi, Meng Yun quickly stepped forward, leaned over to him and whispered, "Boss, Mr. Ren from Huawei is here."

Chen Yansen nodded, apologized to Meng Yuanzhi, and turned to rush to the door.

Before he got closer, Ren Zhongfei waved and greeted him with a smile.

Yu Chendong grinned like a little follower.

"Mr. Ren, thank you for your hard work along the way."

Chen Yansen held Ren Zhongfei's right hand, shook it with moderate force, and had a sincere smile on his face.

Ren Zhongfei patted the back of his hand and glanced at the poster at the entrance of the venue: "Tiangong A100 is the first domestically developed chip. If I don't come, I'm afraid people in the industry will laugh at me for not keeping up with the times."

Having said that, Ren Zhongfei estimates that the performance of Tiangong A100 is at most at the level of Snapdragon 600 or Tegra 3.

Precisely because he understands chips, he understands more clearly how difficult it is to design a SoC chip that integrates modules such as CPU, GPU, baseband and DSP.

If Tiangong Technology can accomplish it so easily, then what is the point of HiSilicon’s hard work over the past ten years?

Are Huawei's R&D engineers stupid?

"Mr. Ren, you are flattering me." Chen Yansen led him inside sideways. With his observation skills, he naturally saw Ren Zhongfei's distrust of Tiangong A100, but he didn't take it to heart.

After all, Ren Zhongfei’s opinion is not important, market feedback can prove everything.

Chen Yansen sent the other party into the conference hall to sit down, and then turned back.

Zhou Shouzhi was on a business trip in North America, and he arranged for Wang Shixiang and Wang Teng, the remaining employees of Orange Technology, to receive guests at the door. Ye Qiuping also rushed to Luzhou from another place.

The identity of the guests, scale and magnitude of this press conference far exceeded those of previous ones. Hundreds of people from domestic and foreign news media alone came, and even the "National Daily", "Times", "Fortune" magazine and CCTV sent staff to the scene.

Next, Hu Ruihui from the China Science and Technology Association, Ge Yue, president of Apple Asia, and He Dingyou, head of ZTE Mobile, arrived one after another.

Representatives from mobile phone manufacturers such as Coolpad, HTC, Lenovo, Sanxing, and Nokia also arrived at the scene in advance.

Suppliers such as Qualcomm, MediaTek, Sony, and BOE also arranged for their top executives from Asia to attend the meeting.

The reason is simple: Orange Technology has the strength!

Lei Jun, Zhou Hongyi, Ding Lei, Jia Yueting, Wu Xinhong and other "young brothers in the mobile phone industry" also came to show their support.

Almost more than half of the world's mobile phone brand representatives chose to attend after receiving the invitation.

Everyone wants to figure out whether the "self" in Tiangong A100, a self-developed chip, means it is truly independently developed, or whether it is technology purchased or copied.

Although Tiangong Technology has launched the Tiangong T100 AI chip, the research and development difficulty of the two is not at the same level at all, which is why many people have a negative attitude towards it.

(End of this chapter)