The next day.
Chen Pingsheng drove his Volkswagen Phaeton to the group headquarters.
There isn't much to do this time, mainly to discuss the listing process of Tengyou Media.
With the listing quota given by Guangzhou, the road to listing will definitely be smooth. Their main task is to find a good IPO financing target.
It can also be said to be a strategic investment partner.
The current valuation of Tengyou Media is 45 billion yuan, which was calculated based on the time when Guo Ziyi invested in it.
The IPO valuation will be around 60 billion yuan. A small increase will also allow early investors to cash out more advantageously.
This valuation will not be done easily.
After all, Xinteng Live's current market value is less than 60 billion. Chen Pingsheng met with Shen Nanpeng and Tong Zelan and asked them to go to the capital market to look for investment targets.
This time the equity dilution will no longer be as much as 60%, but 40%.
The IPO financing target is 24 billion.
With the popularity of Tik Tok and the short video economy, this goal is still possible to achieve.
It just takes some time.
If this financing is completed, based on the 35% shares he still owns, cashing out 40% will be 14%.
It can probably earn 8.4 billion RMB, which is definitely a huge income.
With the help of the golden finger, the research and development funds needed for Tengfei New Energy in 19 years can basically be raised.
Shen Nanpeng suggested that some physical enterprises be packaged and brought into Tengyou Media.
If it only relies on the group of internet celebrities and guild live broadcasts under its command, and lacks the real economy, it will be difficult for the capital market to believe that it is worth 60 billion.
Tong Zelan also supports this suggestion. The benefit of bringing in physical enterprises is to achieve the combination of virtual and real, which can also better tell a good story in the capital market.
A valuation of 60 billion yuan cannot be supported by internet celebrities alone.
Chen Pingsheng thought about it and agreed that it made sense. He had many industries under his control, so acquiring a few physical enterprises was no big deal.
It’s just that which companies will add to Tengyou Media’s story after the acquisition, which is very important.
Chen Pingsheng said, "I invested 1.2 billion in No. 9 Clothing Warehouse two years ago. My original intention was to wait for Tengyou Media to take off and then improve its live streaming business in the clothing sector. Currently, No. 9 Clothing Warehouse has direct stores in major cities, so why not integrate it into Tengyou Media first?"
"That's no problem."
Shen Nanpeng must know about No. 9 Clothing Warehouse. In this situation, there are very few people who can still spend more than 1 billion to invest in physical clothing stores.
When Chen Pingsheng invested this money, he knew that it was a preparation for live streaming sales.
Now it seems that it was true.
They want to raise Tengyou Media’s valuation to over 60 billion.
That requires packaging some real industries into it.
"But if you price your No. 9 Clothing Warehouse too high, I'm afraid investors won't buy it."
"I invested 1.2 billion, and they're merging it at 1.5 billion. Isn't that excessive?"
"It's not excessive, it's quite appropriate."
Shen Nanpeng added: “In addition to the No. 9 clothing warehouse, you’d better incorporate some department stores and supermarkets to improve the future department store sector. As long as this step is completed, Tengyou Media’s valuation of 60 billion will definitely be achieved.”
Chen Pingsheng naturally has no shortage of department stores and supermarkets.
He owns one of the earliest Tenghui Department Stores, but in this case, Tengyou Media has to acquire a certain number of supermarkets from Tenghui Department Store, at least not less than one hundred.
This is fundamentally different from investing in Tenghui Department Store, which is a relationship of mutual cooperation.
The number of supermarkets acquired in full is to cut off a part of the stores.
Allowing Tengyou Media to have its own independent supermarket brand will obviously give it greater advantages in the future live streaming sales sector.
The current valuation of Tenghui Department Store is around 20 billion yuan. Except for the stores in Beijing, Shanghai, Guangzhou, Shenzhen and Hong Kong, all of them are self-owned.
The storefronts in other cities are basically rented.
It is no exaggeration to say that the market value of 20 billion is almost the same as the number of stores he has in these super first-tier cities.
Chen Pingsheng simply waved his hand and acquired Tenghui Department Store except for the supermarkets in Beijing, Shanghai, Guangzhou, Shenzhen and Hong Kong.
All stores in other cities were sold to Tengyou Media.
For pricing, the finance department will also need to provide specific data.
It is not possible to give an exact number at the moment.
For Shen Nanpeng and Tong Zelan, spending billions more to acquire Tenghui Department Store is not a big deal at all.
After all, they are all early investors of Tengyou Media, and once Tengyou Media can achieve a valuation of 60 billion.
That's the real big money.
It is a normal business practice for a company to buy some core assets to increase its valuation before going public.
Only after going public will non-essential assets be sold.
Of course, there is another situation, which is to increase the confidence of investors in order to make the financial statements look good before listing.
There are also companies that deliberately sell some core assets, and these are generally scam companies.
Tengyou Media clearly does not fall into this category, and it has no assets to sell.
Only physical assets can be added.
On November 18, 2018, Tengyou Media released the news.
Acquired No. 9 Clothing Warehouse for HK$1.5 billion.
When the news came out, the capital market was quite calm. After all, both Tong Zelan and Shen Nanpeng were big names in the capital market.
They want to work together to push Tengyou to go public and attempt to achieve a valuation of 60 billion yuan.
It is necessary to buy some physical assets.
On the day the news came out, Zhang Wanyi held a press conference in Guangzhou to explain the significance of the acquisition.
The 1.5 billion acquisition cost and 1.2 billion are investment costs.
With only 300 million in profit, even a small amount is still meat.
Chen Pingsheng used a random amplification once, and his luck was pretty good, resulting in a five-fold profit.
Adding the 1.5 billion capital that came back this time, we now have 3 billion.
Although he is the only investor in No. 9 Clothing Warehouse, it was built up together with his old classmate Yao Anni and a group of people.
These early founders all received a certain amount of dry shares, and they could only cash out after the company went public.
It is impossible for No. 9 Clothing Warehouse to go public now, as it has been incorporated into Tengyou Media.
This means that the dreams of all the executives who received dry shares in Nine Clothing Warehouse to go public have been completely shattered.
Chen Pingsheng did not want to disappoint those who believed in him, so he took out 300 million as a bonus and gave it to Yao Annie and the corporate executives she led.
Many of them were transferred directly from Tencent Film Group.
Yao Anni personally received a reward of 80 million yuan, and the other 24 executives shared 160 million yuan equally.
The remaining 60 million was given to nearly 100 middle-level managers.
It means each person will receive a cash reward of 600,000 yuan.
In this way, everyone is happy. As for the grassroots employees, things are the same as before.
It has little to do with them.
After No. 9 Clothing Warehouse was merged into Tengyou Media, all store managers, including the upper-level management, had to start following the route of internet celebrity clothing bloggers as required by Tengyou Media.
That is to say, live streaming to sell goods.
As a result, Tengyou Media has gained 1,200 directly-operated clothing stores and thousands of professional clothing anchors.
As a result, corporate valuations soared.
November 21, 2018.
Tenghui Department Store announced that it will open 138 Tenghui Department Store supermarkets outside Beijing, Shanghai, Guangzhou, Shenzhen and Hong Kong.
The price was 6 billion and all of them were sold to Tengyou Media.
Seriously speaking, the supermarket business has not been very good in recent years. Except for its own stores in super first-tier cities, Tenghui Department Stores in other cities have both good and bad performances.
The sale of these 138 supermarkets means that Tenghui Department Store will only focus on development in super first-tier cities in the future.
It also means that it no longer has any heavy burdens. As soon as the news came out, the share price of Tenghui Department Store, which is listed in Hong Kong, soared.
Unfortunately, this money cannot be increased randomly.
The main reason is that he doesn't have many shares in Tenghui Department Store, only 5%.
The 6 billion in revenue is included in Tenghui Department Store Group, and how it will be used in the future remains to be determined.
The two investments enabled Tengyou Media to own more than a thousand physical clothing stores and more than a hundred super-large department stores.
After completing these two investments, Tengyou Media's story has become increasingly stronger.
Of course, these two sums of money did not come out of nowhere.
Tengyou Media raised funds internally, and the current shareholders jointly completed the 8 billion yuan financing.
Chen Pingsheng also owns 35% of the shares, and naturally invested 2.8 billion yuan in it.
A typical example of pouring from the left hand to the right hand.
The final result was that everyone agreed that Tengyou Media’s valuation of 60 billion yuan was too low.
It must increase to 80 billion.
Otherwise, it would be a shame for them to spend the 7.5 billion in acquisition funds.
Okay...Chen Pingsheng reluctantly agreed to this suggestion.
He wouldn't mind if the price rose to 800 billion, as long as there were still fools willing to take it over.
If no one takes over, then they themselves will be the fools.
After Tengyou acquires these assets, it will definitely take some time to digest them.
Fortunately, these are all industries under Chen Pingsheng's Tengying Group, projects born from the same father.
It won't be too difficult to integrate.
(End of this chapter)
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