Backdoor listing is a commonly used financial method. Simply put, it means acquiring an already listed company with a low market value from the stock market and obtaining control.
Then inject the parent company's assets into the listed company, and then raise funds through issuing additional shares to achieve the purpose of listing.
In the 1990s, this phenomenon was everywhere.
With the continuous improvement of the Hong Kong Stock Exchange, more and more mainland and overseas companies are choosing to list in Hong Kong.
If the company were to go public according to the formal procedures, the amount of manpower, material resources and time required would be astronomical.
In order to take a shortcut, acquiring a listed company with low assets and turnover market value becomes the best choice. This type of company is also called a shell company.
If you follow the normal listing process, you need to meet certain qualifications and conditions.
The company that chooses to go public must be a public company. Secondly, there are also requirements for its market capitalization at the time of listing, which must be guaranteed to be above HK$5 million.
The minimum number of shares issued at the same time is 25%, and these issued shares must be circulated in the market and held by the public.
The most difficult part is the operating record of listed companies, which is generally five years. This is really a bottleneck problem for companies that are developing rapidly and are eager to go public.
The next step is to apply for a listed company to sell no more than 10% of its shares to its members, submit the listing application and information, and then pay the fee, which is 100,000 yuan for the first time.
At present, the trend of acquiring shell companies has not yet taken off in Hong Kong. It was not until the emergence of gold medal expert James Tien that acquiring shell companies became a business.
The famous Huang Guangtou's Gome and Lao Wang, who later became famous for his 100 million yuan goal, both suffered losses from listing. After purchasing the listed shell from Zhan Peizhong, they also had to purchase its certified equity, otherwise how could they issue shares that could be subscribed.
Ever since Mo Zhexuan set the goal of listing the fragrant duck in the headquarters building last time, Wang Pengfei acquired a shell company called Lihua Garment from the stock market. The registered capital is 10 million Hong Kong dollars and the company specializes in the production of finished garments.
The boss is named Wang Fugui, a native of Hong Kong. The factory is located in the Pat Sin Leng area of Tai Po, New Territories, covering an area of more than 500 acres of land and employing more than 500 people, which is far from the tens of thousands of employees at its peak.
Lihua Garment's market value was HK$20 million, and it owed HK$30 million. It was not far from bankruptcy, but it only cost HK$8 million to acquire this shell company.
After the acquisition was completed, the information of Fragrant Duck was sent to the Kowloon Stock Exchange for review. Although its original business was not quite consistent with its financial status, it was approved smoothly with the help of Hang Seng Bank.
After it was approved, Lihua Garment was immediately renamed to Fragrant Duck Co., Ltd., and the business information disclosed was also modified to add food categories, etc.
At the same time, in order to ensure the smooth injection of Fragrant Duck into the new listed company, all the shares pledged to Hang Seng Bank were redeemed and replaced with shares of Xie Liyuan Gold Shop and Ruitai Securities.
At this time, in the chairman's office on the top floor of the Xiangjiang Group's headquarters building.
Wang Pengfei of Ruitai Securities, Li Wei, general manager and vice president of Fragrant Duck, Yang Mingyu, executive vice president of the group, and other senior executives are discussing the relevant matters of additional share issuance with Mo Zhexuan.
"Mr. Mo! Leaders! Currently, all of Fragrant Duck's assets have been injected into the new listed company. We have also obtained warrants with the help of Hang Seng Bank."
"According to our estimates and in consultation with the Kowloon Stock Exchange, the total number of shares to be issued will be 10 million, with a price of HK$100 per share. Existing shareholders of the listed company will be allocated shares one by one."
"As for whether to choose the rights issue, it will all be decided by the shareholders themselves. We will announce this news through the media."
“.................”
Wang Pengfei's face was full of excitement. Of the 10 million shares issued this time, 5 million shares will be issued solely by Ruitai Securities as the underwriter, and he will definitely make a lot of money then. The other 5 million shares will be issued by Hang Seng Bank. After all, Hang Seng Bank's resources and connections are not comparable to Ruitai Securities' current ones.
"Okay! Have you guys decided on a release date?"
Mo Zhexuan nodded. Now he basically controlled the overall situation, and all specific matters were completely delegated to his subordinates. He wanted to learn this from Li Chaoren.
Li Chaoren once said a famous saying, "Talent is inexhaustible and can be used endlessly. If you are good to others, it is natural that they will be good to you. Anyone in the world can become your core person."
"The date is December 30th, the last day of 1983, and it will be officially released to welcome the new year."
Wang Pengfei immediately told the date, but it was not so easy to release it.
The interests of all parties must be managed and promoted well.
Otherwise, if the stock price falls below the issue price like it did to China Gas last time, it will be really over.
"President Li! Is there anything wrong with your fragrant duck?"
Mo Zhexuan turned around and looked at Li Wei, the general manager and vice president of Fragrant Duck.
"Mr. Mo! No problem. We've already drawn up a stock ownership plan for our outstanding management and store managers. Most people are very satisfied, so everyone is happy."
Li Wei is in high spirits now. Once Fragrant Duck is listed, the shares he will get will be an astronomical figure. It is possible that his net worth will be over 100 million Hong Kong dollars, but it will definitely be tens of millions of Hong Kong dollars.
"Mr. Li! Congratulations! Your wealth has skyrocketed this time!" Executive Vice President Yang Mingyu joked with a smile, the envy in his brows naturally revealed, and he felt regretful in his heart, wondering why he couldn't join earlier.
"Old Li! You must treat us after the listing."
Another vice president is Li Xinlei of the gold processing plant. Now the 3.66 tons of gold have been basically consumed.
At the same time, Mo Zhexuan also told the other party the news of selling the gold business and asked him to stay at the headquarters.
As for the gold processing factory, although it is still in operation, there are only a few dozen people maintaining the processing of some jewelry.
"No problem! I will definitely treat everyone to a big meal at the Xiangjiang Hotel." Li Wei said with a smile.
"One meal is not enough! At least five meals." Li Yunfei from "Three Minutes of Heat" also jokingly said with envy.
"Alright! I understand everyone's feelings, and there's no need to be envious. As long as everyone works hard and makes the Xiangjiang Group bigger and stronger, I won't treat you unfairly. I'll give everyone a certain percentage of shares based on their contributions."
Mo Zhexuan made the final statement, saying that although a certain amount of shares would be given, it would definitely not be a lot, that was for sure.
Everyone then discussed in detail all the precautions for the launch, and announced that all departments must cooperate well to win the battle to launch the fragrant duck.
Continue read on readnovelmtl.com
