Chapter 702: Estimated market value of 1.2 trillion, a hot commodity in Hong Kong's financial circle
Hong Kong Island was still sweltering in late September. As the wheels of a car rolled over the asphalt road in the suburbs of Fanling, a few birds hid among the branches and leaves, making short calls.
The Golf Club is undoubtedly one of the top golf clubs in Asia and has hosted many international professional tournaments.
It was built in 1889 and has a history of over a hundred years.
For the old wealthy families in Hong Kong Island, countless people in three generations have negotiated and concluded business deals here.
It is said that when Li Ka-shing, with the courage of a "snake swallowing an elephant", joined hands with shipping magnate Pao Yue-kong to acquire Hutchison Whampoa, the two sides conspired on this golf course.
Through the car window, you can see the buildings outside, most of which have an old and elegant style. The pointed stained glass windows reflect the morning light. The lawn in front of the door is trimmed like green velvet, and even the height of the grass blades seems to have been measured with a ruler.
The caddy in a dark green uniform was already waiting by the side. When he saw Chen Yansen and Zhou Songtao get off the car, he immediately stepped forward and bent down to take the golf bag. His movements were so gentle that no sound was made.
When working in a golf club, you may have shortcomings in your professional skills, but you must never lack insight.
Because the people who come and go here are either rich or noble, if you offend any of them, you may become an important figure in Hong Kong Island.
What's more, this caddy not only knew Zhou Songtao, but also knew Chen Yansen, so he naturally didn't dare to be negligent in the slightest.
"Mr. Chen, what time did you agree to meet with Li Zeju?"
Zhou Songtao accompanied Chen Yansen straight into the depths of the court. After taking a few steps, he suddenly asked.
"Two-thirty, still an hour."
Chen Yansen said lightly.
"It's still early. I'll take you to meet some people in the Hong Kong investment community first."
Zhou Songtao nodded and continued.
Orange Technology's current valuation is 200 billion US dollars, equivalent to more than 1 trillion yuan. Once it is successfully listed, it is likely to surpass Penguin and top the list of technology stocks.
However, compared with the market value of several large banks, it is still hundreds of billions less.
In the eyes of Hong Kong's financial circles, Orange Technology is a hot commodity. As long as it can obtain underwriting qualifications, it can at least earn hundreds of millions.
What is a listing?
To put it bluntly, it is the process of companies, securities firms and stock exchanges working together to make the "cake" bigger.
Among them, companies can raise funds through listing, exchanges can earn transaction commissions, and securities firms can charge sponsorship fees, underwriting commissions and compliance consulting fees. Ultimately, all three parties can make a lot of money.
Especially for companies like Orange Technology, which have rapid development, great market potential and high valuation, the money they can earn alone is often equivalent to the total of several or even dozens of small and medium-sized enterprises.
Not only are overseas brokerages eager to make a move, but even local brokerages in Hong Kong are also keen to compete.
Even if you don't get the lead underwriting qualification in the end, you should at least get a joint underwriting spot and get a share of the profits.
Just like when Pinbei was first listed, why were the five major underwriting institutions including Goldman Sachs, Credit Suisse, and Morgan Stanley willing to work at their full capacity to raise the original issue price of US$34 to US$40?
Ultimately, it is the word "interest" that drives everything.
"Then I'll trouble you, President Zhou."
Chen Yansen smiled and did not refuse.
Song Yuncheng followed closely behind him with steady steps. There was no trace of nervousness in his eyes, only calmness.
For her, she had seen such scenes too many times and no longer felt nervous.
In the past, whenever he was on vacation or on a business trip, Chen Yansen would take the opportunity to train Song Yuncheng.
In addition to guiding her in her work, he also introduced her to social sports such as skiing, swimming, tennis and golf.
Her skills in these projects are not top-notch, but she has no problem handling general business communication scenarios.
Zhou Shouzhi and Gao Weilin were like two pendants, two steps behind and following behind their boss.
After walking for a while, the group arrived at a rest area. The table was neatly laid out with plates of exquisite fruits, desserts, and side dishes, and various expensive wines and beverages were displayed nearby.
Men in smart suits were holding champagne in groups of three or four and talking in low voices with people around them.
There were very few people playing ball, and most people were busy negotiating business.
After all, for them, making money is the primary goal, and playing ball is just an excuse to initiate this party.
Ian, a partner at Goldman Sachs' Hong Kong Island branch, was about to retort to his old friend's teasing when he saw a very familiar figure out of the corner of his eye.
Ian didn't have time to think about it, so he quickly put down the wine glass in his hand and strode straight towards Chen Yansen.
Seeing his abnormal behavior, the people around him shifted their gaze and soon noticed Chen Yansen on Zhou Songtao's left.
Seeing this, the remaining dozen or so people also stood up to greet him.
Even though Chen Yansen's trip to Hong Kong Island was not for the company's listing, they dared not neglect it.
You should know that Senlian Capital not only owns insurance companies like Semir Online, but also the recently established Senlian Bank.
In addition, there are rumors that Senlian Capital is interested in entering the securities industry.
No one can tell when the day will come when he will need help from Chen Yansen.
Therefore, these big men, who could make the financial circle tremble with just a stomp of their feet in Hong Kong, all had smiles on their faces and fawning looks in their eyes, hoping to establish a good relationship with the boss.
"Hello, Mr. Chen, I'm Ian from Goldman Sachs Hong Kong Island Branch."
"Mr. Chen, I'm Gao Fenghao, the head of Morgan Stanley's Hong Kong Island office."
"Mr. Chen, I'm Duan Chenhui from Huaxin Securities."
“…”
Chen Yansen greeted each of these people one by one.
Zhou Songtao, acting as the middleman, said with a smile, "Let's sit down and talk slowly."
After saying that, he led everyone towards the rest area.
A waiter in a champagne-colored uniform and soft-soled shoes walked quickly forward, holding a tray and serving drinks to Chen Yansen and others.
Chen Yansen sat down, and before he could even warm up the chair, Gao Fenghao, who was sitting opposite him, said with a smile, "Mr. Chen, last month I went to New York to attend the group's second quarter financial meeting. President Gregory specifically mentioned the grand occasion of Pinbei's listing on the New York Stock Exchange last year.
He also said that Orange Technology's market potential is comparable to Pinbei's, and based on our previous good cooperation, Morgan Stanley is very happy to be the underwriter of Orange Technology's shares.
Hearing this, Chen Yansen pondered for a moment before slowly speaking: "Last year, when Pinbei went public, Morgan Stanley did contribute to the roadshow and pricing.
However, Orange Technology and Pinbei are in different sectors. The former focuses on hard technology research and development, while the latter focuses on lifestyle services. Their valuation logic and investor profiles are different, so they cannot be simply compared.
Gao Fenghao's face froze when he heard this, then he leaned forward again, his tone more sincere: "Mr. Chen is right! It is precisely because Orange Technology is the leader in the mobile phone industry that we are more confident.
If Orange Technology is willing to cooperate, we can bring in the world's top sovereign wealth funds and hedge funds, and guarantee a first-day increase of over 20%.
But just as he finished speaking, Duan Chenhui from Huaxin Securities coughed lightly and took over the conversation, saying, "Morgan Stanley's overseas resources are indeed impressive, and they have achieved remarkable results in securities underwriting, trading, asset management and other fields, but this is Hong Kong Island!
Huaxin has more advantages in issuing shares. If Mr. Chen is willing to choose Huaxin as the underwriter, we can make the channel for retail investors to subscribe more smoothly, and then cooperate with several major local banks to conduct dark market transactions, ensuring that the stock price will not only meet expectations but also rise steadily. "
Dark trading refers to the use of the internal systems of large brokerage firms to match quotes. Transaction information is not fully disclosed to the public and does not go through the exchange's public information disclosure process. It is common in the Hong Kong stock market.
The name may sound like an illegal transaction, but it is actually a legal and compliant way of trading.
For investors, they can sell new shares in advance when the dark market price is ideal. If they are worried about the stock price falling after listing, they can also cash out in advance through the dark market to stop losses.
In addition, some investors who are optimistic about the prospects of new stocks but did not win the lottery or were allocated insufficient quantities can also buy them in advance through the dark market to avoid missing out on potential rising returns after listing.
For securities firms, providing dark trading services can attract more potential customers, including new investors and institutional clients, thereby enhancing their own market competitiveness.
For Orange Technology, there are three main advantages.
First, it can predict market sentiment in advance and provide auxiliary pricing reference.
Although the dark market price does not directly determine the stock price after listing, it can be used as a reference indicator to determine whether the issuance pricing is reasonable.
For example, when the dark market price is significantly higher than the issue price, it may indicate that the issue price is underestimated, and the listed company can formulate a more accurate pricing strategy during subsequent refinancing; if the dark market price is lower than the issue price, the pricing logic or marketing effect needs to be adjusted.
Second, stabilize the equity structure and reduce market shocks.
Dark trading can prevent large orders from entering the open market directly, which would cause sharp fluctuations in stock prices.
For example, if an institutional investor needs to reduce its holdings of millions of shares, it can complete the reduction through anonymous transactions in a dark pool without causing the stock price to plummet due to order exposure, thereby maintaining the stability of the company's stock price.
Third, expand financing channels and attract strategic resources.
The privacy of dark trading can attract strategic investors who focus on long-term cooperation and provide more flexible financing methods.
When the representatives from Tai Fook, Sun Hung Kai, Hua Jin and other institutions sitting nearby heard this, they immediately became angry.
Without waiting for them to speak, Chen Yansen slowly said, "When selecting securities firms, Senlian Capital will focus on institutional qualifications, underwriting capabilities, commission rates, and valuation quotations.
I will be staying in Hong Kong Island for a few days this time. If you are interested, you can come to Sunlink Capital's office in Hong Kong Island tomorrow. Then we can bid based on the price and negotiate fairly."
In fact, Chen Yansen prefers a model that combines foreign and Chinese securities firms.
On the one hand, foreign securities firms can help him connect with overseas investors; on the other hand, Chinese securities firms can help attract mainland investors.
Although the Hong Kong stock market is large in scale, it may not allow Orange Technology to fully realize its potential.
Therefore, gaining the support of overseas investors has become an indispensable step.
As soon as Chen Yansen opened his mouth, the rest area instantly became much quieter.
Zhang Qishan, the representative of Dafu Securities, who had originally wanted to interrupt, quietly put his hand back.
The four words "bidding by price" seem to give everyone a fair opportunity, but in fact they firmly hold the right of choice in the hands of Senlian Capital.
After all, the qualifications and underwriting capabilities of securities firms are the obvious foundation, but how low the commission rate can be pushed down and how much the valuation quote can be given is the real competition of hard power. If you are not careful, you may lose money and gain publicity.
It was Ian from Goldman Sachs who was the first to react. He put down his glass and smiled just the right way: "Mr. Chen's method is fair!"
Despite his nice words, he was secretly criticizing Chen Yansen and couldn't help cursing, "This Chen Yansen really has no feelings at all. He only cares about practical benefits."
"The same goes for Morgan Stanley!" Gao Fenghao responded immediately.
He paused and continued, "Mr. Chen, we have actually prepared three underwriting plans for Orange Technology, detailing everything from the global roadshow schedule to the selection of institutional investors.
Especially regarding commission rates, as long as we can obtain lead underwriting qualifications, we are willing to reduce them by 25% compared to the industry standard!"
Duan Chenhui from Huaxin Securities couldn't help but frown.
A 25% drop is almost hitting the brokerage firm's cost line. How could Morgan Stanley be willing to spend so much money just to grab the order?
She cleared her throat and said slowly, "Mr. Chen, tomorrow we will not only bring the valuation report and commission plan, but also the draft of the dark market cooperation agreement with several major local banks. We will ensure that Senlian Capital can see our sincerity."
Others also hurried to agree, one after another emphasizing their own advantages, talking about past cases and resource reserves, for fear that their business would be snatched away by their competitors.
When Li Zeju arrived, he happened to see this scene.
All the bigwigs in Hong Kong's financial circle are now gathered in front of Chen Yansen. Everyone has a fawning look on their face and their eyes are full of goodwill.
Is he Chen Yansen, the founder of Senlian Capital?
Li Yanning followed behind her father, and the moment she looked at him from afar, her breathing suddenly stopped.
Even though she grew up in a business environment and was knowledgeable, she had never seen a young entrepreneur with such outstanding temperament.
The Chen Yansen in front of her really made her eyes light up.
Although she was only eighteen years old, she had been exposed to business affairs due to the influence of her family. She was also full of curiosity about the new richest Chinese person not far away.
Li Zeju led his daughter and assistant, followed by two bodyguards, and walked forward with steady steps.
Chen Yansen spotted Li Zeju and others immediately.
From his spiritual perspective, in addition to the two bodyguards in the open, there were six security guards in black suits distributed around them.
Rich people usually value their lives very much, and as the son of a wealthy man who has experienced kidnapping, Li Zeju is more cautious than others when it comes to safety.
"Mr. Chen, nice to meet you! I was unable to attend the two conferences earlier this year due to illness, and I missed the opportunity to meet Mr. Chen."
Li Zeju approached and said with a smile, without any arrogance on his face.
In his eyes, Chen Yansen and the Senlian Capital behind him are extremely powerful.
Li Zeju has always respected the strong, so he naturally did not dare to be negligent in facing Chen Yansen.
(End of this chapter)
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