Shen Kun offered him a cigarette, which Chen Fang lit, and then walked out of the dressing room.
Liu Qianqian looked at Shen Fang, who was dressed in a white suit, her eyes sparkling with hearts, and pounced on him.
"Wow, Brother Chen Fang is so handsome, so handsome!"
Looking at the beauty in his arms, Shen Fang said with a wicked smile, "I have some work to attend to. Qianqian, you stay here and film well. I'll bring you a gift when I come back."
Liu Qianqian nodded repeatedly: "Yes, yes, come back soon."
Shen Fang nodded, greeted everyone, and then hurriedly left the film crew.
On the minivan.
"Third Uncle, I've already booked the plane tickets. We'll be in Shenzhen by 3 o'clock."
Shen Fang nodded.
"Are Brother Ma and the others coming with us?"
“Let’s go together. Let’s go to Shenzhen first. Let’s set off together. Third Uncle, I really didn’t expect Tencent to go public so soon.”
Shen Fang smiled and said, "Actually, I think we're being a bit too hasty, but there's no other way. Tencent wants to dominate the market and develop rapidly, so going public is a must. Xiao Kun, how many shares do I currently own?"
"26.5%, Pony Ma 19%, and the rest, including Brother Li and the others, total about 47.5%, plus Baring Asia 5%, and the rest are the company's veterans. This time, Pony Ma is prepared to contribute 25% of the shares as public equity."
"Brother Ma's idea is to allocate about 20% of the public dividends to financial groups like the Landlord Association, Goldman Sachs, Morgan Stanley, and HSBC, and let them operate them."
Shen Fang smiled and said, "20% of the newly issued shares are probably not even enough for the consortium to scrape together. Tencent is very popular now, and they will definitely scramble for these newly issued shares. Okay, let's not talk about this for now. What is the Hong Kong Stock Exchange's current valuation of Tencent?"
The reason for this question is simple: the number of shares a company issues is determined by its registered capital, which sets a minimum issuance limit. The specific number of shares issued is determined based on the amount of financing needed, company valuation, and the underwriters. Registered capital is the share capital; 100 million in registered capital means 100 million total shares. The issuance quantity is stipulated to be no less than 25% of the total share capital after issuance.
With a share capital of 100 million, the issued shares are generally over 35 million. The issued portion is the newly added portion, not the sale of existing shares by the company. Of course, the original controlling stake will be diluted.
The maximum number of shares a newly listed company can issue depends on the final share capital you determine. Generally, it should not be less than 25% of the total share capital after issuance. How to determine the total share capital depends on the pre-listing valuation, the company's value, and the exchange's assessment.
"Our Tencent is incredibly popular right now. Its user activity and user traffic are among the highest in the world, with a huge number of users in Hong Kong. Tencent is also frequently featured in the financial sector lately, and Pony Ma (Ma Huateng) is a headline figure. Financial Street and the internet sector have been making headlines recently. Goldman Sachs has valued it at nearly HK$10 billion, with an offering price of HK$2.50. The IPO price will be slightly higher, around HK$3, but the rest will be roughly the same."
Shen Fang stroked his chin: "According to the exchange rate, it's only a little over 1 billion US dollars, which is a bit underwhelming. It sounds like a lot."
"Third Uncle, it's actually quite good. With your shares, you'll directly join the 2 billion club. Isn't that enough? Besides, the company can still grow slowly. As long as Tencent becomes bigger and stronger, the money will come like a printing press. The most important thing now is to get Tencent listed first. Didn't you say that we're in the boom period of internet development right now? It's all about financial strength. Whoever has money is the boss. Let's get the money in our hands first."
Shen Fang laughed: "Alright, let's go and see how these conglomerates operate. Let's go."
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