High School Belle Fell in Love with Me

Chapter 555 - 244: The Largest Private IPO on the A-Share Market_2

Jiang Baichuan said angrily, "All you talk about is you guys, you guys! You’re not an industry professional, and you have nothing to do with Wanliu Capital!"

"Haha, it’s fine, I’m a joint actor with Jiang Banxia."

"Joint actor? What about that batch of funds you have abroad?"

"What abroad? I’m dirt poor now, unknowingly near a hundred billion in debt, where do I have money?"

"You...forget it, forget it, I’ll give you the quota, but if it loses money, you must find a way to fill the foreign exchange gap..."

QDII funds require foreign exchange, and domestic management is quite strict, primarily to prevent capital outflow.

Some QDII funds cooperate with foreign entities, helping lift foreign funds, and naturally, this foreign exchange can be lost, unknowingly resulting in capital flight.

Therefore, the quota for QDII funds has always been managed strictly.

A single fund with a quota of fifty billion US dollars? Impossible!

Li Yang’s money in Port City was the reason Jiang Baichuan was less cautious.

"Since that’s the case, why not give a hundred billion US dollars?"

"You...use up the fifty billion US dollars first!"

Jiang Baichuan almost spit out a mouthful of old blood; Li Yang’s words implied that even if he lost the hundred billion US dollars, he could make up for it.

What a bold statement!

Yet, thinking again, this guy is indeed remarkable.

Perhaps among the funds he manages, the money Li Yang makes doesn’t even cover a year’s interest on the money he manages.

But his system is enormous, has numerous channels, and covers countless products.

Li Yang’s access to products is limited.

"Oh, right, I wanted to discuss something else with you. Wanliu Capital is preparing to go public. You know the scale of Wanliu Capital; not just anyone can handle it. Can you help us find a few strong underwriters?"

Jiang Baichuan asked, "Can’t handle it? They can handle IPOs of over a hundred billion, but not Wanliu Capital? Ping An’s IPO was nearly four hundred billion, and nobody even flinched. If the market is willing, even if your IPO is a trillion, someone will be clamoring for it."

Li Yang replied with a smile, "No, no, we aren’t thinking that big, we just want six hundred billion."

"Six hundred billion? Are you trying to sell the whole company? That’s not according to procedure, it won’t be approved."

"Sell everything? We’re only offering 20%, if we sold everything, we’d be drinking northwest wind in the future?"

Jiang Baichuan: "..."

So Li Yang actually thinks Wanliu Capital is worth three trillion?

It’s a dream even he wouldn’t dare to have.

"Why do you think Wanliu Capital is worth three trillion?"

Li Yang said, "Just look at last year’s net profit for Wanliu Capital, over a hundred billion, while the year before was just a few billion. At this rate, this year’s net profit should be six or seven hundred billion. If we weren’t worried that Wanliu Capital would become increasingly valuable in the future, completely missing the opportunity for an IPO, we wouldn’t be willing to put this egg-laying hen into A-shares.

Even if we estimate based on last year’s net profit, it’s just over twenty times PE, is that high? If we base it on this year’s projected net profit, it’s under four times PE, what’s the difference from free money?"

Li Yang’s shameless words left Jiang Baichuan speechless.

Predicting net profit a year in advance?

So they earned a buck last year, and this year, they earn ten thousand, next year they project earning a billion?

Li Yang knows what earning six to seven hundred billion means, right? There are only eight companies in A-shares with net profit over five hundred billion, and only four over seven hundred billion.

That’s the Big Four banks.

Then comes Mobile with over six hundred billion, Ping An, CMB, and CNOOC with over five hundred billion profits.

Even Moutai’s net profit is only over three hundred billion.

He said helplessly, "You really know how to make up new terms for me; your calculations are absurd!"

"Boss, I’m quite pragmatic."

"Alright, I can arrange for someone to distribute it for you, but what doesn’t sell, I won’t cover for you, you’ll have to find someone to take the rest."

Jiang Baichuan agreed, he surely needs to get a fee from Wanliu Capital.

"No problem, here’s my thought, the total capital will be a trillion shares, each share at three dollars, offering two hundred billion shares in IPO, allowing each shareholder a 500-share purchase quota. Anyway, if the demand exceeds that, we can release three hundred billion or four hundred billion shares, it’s the same. If demand is low, I’ll arrange for someone to buy what’s left."

"There’s no use telling me this, pricing and total capital, will be audited first," Jiang Baichuan felt Li Yang was a bit presumptuous.

Three dollars a share? A trillion shares?

Is this an IPO or just crashing on the first day?

The total capital is too much, no institution would want to hold it.

Besides bank stocks with their high dividends, which can breach the trillion mark, the king of retail investors BOE only has a little over three hundred billion in total capital.

He immediately understood Li Yang’s intention, but...

It doesn’t matter, let him do as he pleases.

Does he really think he’s a god?

No one will cover for him.

The sensible way would be setting a high price, earning institutional favor, greatly boosting their market value.

"Then I’ll trouble you. Oh, before going public, there’ll be a series of equity changes, would you want to take a part?"

"I can, I’ll show support for five percent."

"I originally wanted to give you twenty percent."

Jiang Baichuan: "The company isn’t yours! Besides, why would I need that much? The five percent is just for Jiang Banxia’s sake, you have no face with me."

"Your words hurt my feelings, I’m much more innocent compared to Jiang Banxia."

"Haha..."

...

Actually, Li Yang was telling the truth.

Jiang Banxia is the true killer, more ruthless than anyone.

But to show support with five percent indicates that Jiang Baichuan indeed likes Jiang Banxia, considering that’s one hundred fifty billion.

Though the money isn’t his, if he makes too many wrong decisions, he’ll have to bear responsibility.

Later, Li Yang starts calculating the allocation of the fifty billion US dollars.

Wanliu Capital probably needs to contribute about a hundred billion; estimating two thousand cars sold before June for the car owner side could only raise seventy billion.

In reality, that many cars likely won’t sell, probably around thirteen thousand or so.

Fifty billion US dollars is about three hundred thirty billion, leaving roughly one hundred eighty billion of space.

Just right for financing Wanliu Capital.

Arriving at Jiang Banxia’s new place, Jiang Banxia is working there.

After all, many people come and go at her house, even now at work, it’s still not quiet.

Li Yang went over and said, "Does Wanliu Capital need financing?"

"Huh?" Jiang Banxia was surprised but quickly caught on, "Sorted out?"

"Yeah, the fifty billion US dollar quota will likely be secured within two months, I calculated it, taking out those car owner’s shares and adding Wanliu Capital’s funds, there’s still a gap of around one hundred eighty billion. I’ll finance Wanliu Capital one hundred eighty billion for 6% equity."

"Are you nuts? That one hundred eighty billion could buy half of Wanliu Capital."

Li Yang laughed, "Finance without leverage? And to make the IPO process smoother, avoiding anyone picking on it."

Is Wanliu Capital worth three trillion? It definitely is.

PEs aren’t high for finance industry IPOs, ranging from twenty to thirty.

Some companies get listed with a PE directly at forty or fifty.

Before IPO equity adjustments, Li Yang could indeed take more, but there’s no need, except it would give people reasons to attack, with few benefits for him.

If he wanted money, he could always rely on his company to seek financing from Jiang Banxia.

"Would those institutions give a three trillion valuation?"

"Their bosses have already said, there’s no way they won’t give. Besides, as long as the data is within reasonable range, why wouldn’t they give it? All that matters is if the market wants to buy."

"But I... this year, I’m afraid..."

Jiang Banxia hasn’t gone to the Capital City yet, clearly not inclined to do so.

"There’s still some time, I’ll quickly get my professional qualification certificate."

"Huh?"