Chapter 41

Finally, Li Feng took Zach and Bob and headed for Silicon Valley.

For this trip to Silicon Valley, Li Feng actually has three purposes: one is to mortgage and find a guarantor; The second is to find a line that can connect with Netscape; The third is to understand the progress of Netscape IPO and prepare for their own investment in Netscape.

For the above three purposes, it depends on venture capital institutions. After all, companies like Netscape generally accept venture capital at the beginning. If Sequoia Capital can help itself, it will be very convenient to contact.

At the same time, whether Mark Anderson, Michael Moretz of Sequoia, don Valentine, or durjohn of KPCB, his back was cold.

Li Feng named his trip a wealth search trip. He thought that if he could get the loan and get some shares before Netscape's IPO, it would be a real wealth search trip.

Li Feng has coveted Netscape. He has been planning since he invested in Yahoo online, just for this day.

Although Li Feng doesn't know when Netscape will be listed, it has entered April and should be fast.

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When it comes to netscape listing, it comes to the IPO (initial public offering) of American enterprises. Recently, Li Feng has made up some basic knowledge in this regard. After all, I may often contact this aspect in the future, and I still need to have a certain understanding.

At this time, I don't know what stage Netscape's listing plan is at. Perhaps it should have been looking for investment banks to "bake". Investment banks often call the whole process of a company's IPO as a "baking contest".

Once an enterprise is ready to go public, it already has the conditions for "baking", that is, the process in which major investment behaviors win the competition for the underwriting of pre listed enterprises.

In fact, many places are directly called "beauty pageants". Investment banking companies enter the conference rooms of listed companies one by one to publicize and offer their own services, hoping to undertake the IPO process.

Quite a bit of a corporate beauty pageant. The "beauty" here is an investment bank. At this time, enterprises take the initiative and pay a much smaller price.

Of course, under the premise that listed enterprises are generally optimistic, those investment banks will compete.

However, if on the contrary, investment banks of listed enterprises are not very optimistic, it will be reversed at this time. Enterprises should go to investment banks and hope to be listed through the operation of investment banks.

At this time, the initiative lies in the investment bank, and the corresponding price will be greater.

......

For example, the world was optimistic about the prospect of listing in a in the previous life. At that time, basically those big investment banks around the world would go to Ali. At this time, Ali took the initiative and could choose calmly.

Alibaba's management team chooses the one that is most suitable for itself as the winner, which becomes the leading investment bank in Alibaba's IPO prospectus. Often, the IPO of some large enterprises is not just an investment bank, but many are several investment banks together.

One of them is a leading investment bank, which gives control and most of the remuneration to the Investment Bank Underwriting team.

In previous generations, it is said that Ali's remuneration to the Investment Bank Underwriting team alone reached US $300 million. Therefore, whoever will become a leading investment bank will be able to obtain the maximum income from this remuneration.

It can be said that from the very beginning, investment banks began to compete for the position of leading investment banks.

For netscape, although Li Feng from later generations knows the grand occasion after his listing, others don't know.

As far as Li Feng's current knowledge is concerned, the Internet tide - bubble feast has not really opened yet, no one knows what the stock price is like after listing, except Li Feng.

As the first listed Internet company, Netscape is not very safe in the opinion of investment banks. Therefore, if Netscape is listed for IPO, it is estimated that Netscape should ask investment banks such as Goldman Sachs and Morgan Stanley for help.

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After the first stage, the next stage is that the leading investment banks will submit an S-1 (prospectus) document to the SEC (Securities and Exchange Commission) for pre listed companies.

This document contains the specific description of pre listed enterprises, including business, law, business lines, funds to be raised, financial status, management team evaluation, etc.

Then the SEC will disclose the information of pre listed companies and seek opinions. Generally, this process takes several months. At the same time, this is also a time to show the strength of investment banks.

The third stage is the so-called "roadshow", which is actually a process of distributing dividends.

Investment banks will produce relevant information about pre listed enterprises and demonstrate it to some investment institutions, funds and even individuals. These investors will buy some shares before listing.

Roadshows generally take about 7-10 days, including talks between investors and enterprise management; Institutional investors will indicate how many shares they want to buy at what price, and then investment banks will record this information in a book, building the book.

After the roadshow, investment banks will begin to distribute shares, taking into account the stability and liquidity of stock prices.

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The last step is pricing, that is to determine the listing price.

Generally, this price is much higher than the purchase price of those investment institutions and investors during the previous roadshow, which is why I say that the roadshow is a process of dividend distribution.

Shares circulating in the stock market, as ordinary shareholders, can be purchased in the stock market. When the stock price rises, it proves to be a successful IPO. If the final stock price is lower than the issuance price, it is a failed IPO.

"FB" in the previous life seems to be very cow, with a market value of hundreds of billions, but many people may not know that "FB" is known as one of the most failed IPOs in history. The original issue price was $42, but the share price fell to $38 that day, breaking the issue price.

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Li Feng's goal this time is to see if he can purchase some shares through venture capital institutions or directly contact netscape before the roadshow or even earlier.

According to the current situation, the Internet tide has not been officially opened. Under unclear circumstances, if Li Feng can borrow enough money, or even contact Netscape directly, he is willing to assume some shares.

Both Netscape and investment banks may support Li Feng's proposal to reduce the risk of IPO.

After all, if the IPO fails, the reputation of both investment banks and listed companies will have a huge impact.

Of course, if you can't buy the previous shares, you can only invest in the stock market. Considering the situation of Netscape, it may also increase the income by 1, 2 or even several times.

......

Li Feng is also considering. I don't know what the issuing price of Netscape is. If you buy millions of shares cheaply, you'll really get rich, and it's a big fortune.

Thinking of this, Li Feng couldn't help laughing. Really, he didn't get the loan yet. He wanted to buy stocks. He couldn't help feeling depressed. He was still too poor. Otherwise, he didn't have to be so troublesome.