Secondly, it can enhance international reputation, which is very important.
The US stock market is one of the world's largest stock markets, with a market capitalization of $50 trillion, accounting for nearly 45% of the total global stock market value. As an important pathway for Chinese companies to access the US capital market, ADRs can help them gain significant attention and recognition from international investors in a short period, thereby effectively enhancing their international reputation and credibility.
Thirdly, reduce listing costs.
Compared to traditional IPOs, ADRs have simpler procedures and clearer tiers, effectively avoiding legal obstacles in the direct listing process, significantly reducing corporate issuance costs, and helping companies achieve their development goals of listing and financing more quickly. They are more favorable to small-sized growth companies that urgently need financing.
"Then, brother, what about our penguins?" Little Ma was intrigued by what Chen Fang said.
"Pursuing long-term sustainable development is the ultimate goal of Tencent's listing. At the time, the landlords, Goldman Sachs, and all of Tencent's leadership reached a consensus, so we all turned our attention to Hong Kong. Compared to NASDAQ in the United States, Hong Kong investors understand Tencent better and understand its value more clearly."
Of course, we also need to provide users who are familiar with QQ and Tencent with a better way to access Tencent and have the opportunity to participate in Tencent's development.
Besides the above considerations, the interests of Tencent employees are the most important factor in choosing the Hong Kong main board.
We committed to employee stock ownership before the IPO. The more reasonable the initial valuation, the more shares employees and investors can acquire for the same amount of money, resulting in greater potential for long-term appreciation.
“Brother Pony, we’re on a long-term development path. We don’t actually lack funds, so a secondary listing isn’t necessary. Unless Tencent goes global, a secondary listing would increase its valuation. But do you know how likely Tencent is to go global? As an instant messaging tool, the US won’t let Tencent in. Even if it does, it can’t compete with the US in the instant messaging market. So a secondary listing is dispensable for us.”
"However, we don't need to rush. Don't forget, we invested in Facebook."
Ma nodded, but said, "I know that. I was just thinking about enhancing our national prestige and making a name for ourselves. Now we can say that we've achieved great success. The remaining consideration is how to take the penguin name out of Asia and into the world."
"We can't rush this. We need to take it one step at a time. Right now, we just need to wait patiently for the storm to come. The bigger the storm, the more expensive the fish will be!!!"
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