Chapter 1227： Central Bureau of Listing

The box-office market is booming.

Prada's cross-border marketing has also played well and has become a classic textbook case.

However, for New Universal, the biggest event this summer is undoubtedly the listing!

Generally speaking, the company's second quarter report will be released in August or September, because the second quarter statistics are from April 1 to June 30.

The bigger the company, the longer it takes to count.

Many large multinational companies will not even release their second-quarter financial statements until November.

New Universal is different, everything is prepared for the listing!

On July 16, the second quarter financial report of New Universal was announced!

The total revenue is 24.16 billion US dollars!

Among them, the revenue of the Film and Television Entertainment Department was US$5.44 billion, the revenue of the Interactive Entertainment Department was US$8.75 billion, the revenue of the TV Media Department was US$4.34 billion, and the revenue of the Consumer Products Department was US$5.63 billion.

It is worth mentioning that in the interactive entertainment sector, the global sales of Dolby DVD players reached 3.28 million units, generating revenue of US$4.26 billion and gross profit of US$3 billion! Even Blizzard Entertainment generated $1.84 billion in revenue, with a gross profit of nearly $200 million.

Among them, the film and television entertainment department spent 3.87 billion U.S. dollars, the interactive entertainment department spent 4.45 billion U.S. dollars (R&D expenses were 2.5 billion U.S. dollars), the TV and media department spent 2.28 billion U.S. dollars, and the consumer goods department spent 3.87 billion U.S. dollars... The single-quarter expenditure was 14.47 billion U.S. dollars.

Adding in debt interest and corporate income tax totaling $5.65 billion, New Universal's total expenses for the second quarter were $20.12 billion!

The single-quarter net profit exceeded 4 billion US dollars!

When this data came out, it shocked the entire Wall Street!

too exaggerated!

For a company with positive earnings, the net profit multiplied by the price-earnings ratio is the market value.

The price-earnings ratio of the film and television entertainment industry is not high, with an average of around 25.

The price-earnings ratio of the hardware industry is relatively low, with an average of around 18.

The price-earnings ratio of the Internet industry is extremely high, generally exceeding 80. Potential stocks like Netflix and Facebook have a P/E ratio of more than 100, which is normal. That is to say, if you earn 1 yuan, you can leverage 100 yuan of capital. The bubble is very big.

The price-earnings ratio of the TV media business is not high, which is around 20.

The price-earnings ratio of the consumer goods industry is uneven, luxury brands such as Prada are higher, and mass brands such as Victoria's Secret are lower, with the new global situation...about 40-50.

New Global is a diversified company, and the market recognition of its various departments is not uniform.

New Universal and Wall Street are discussing the listing price. The most fundamental content of the discussion is to combine so many industries and come up with a unified price-earnings ratio plan.

As far as the current situation is concerned, the price-earnings ratio of New Global can be between 30-35.

New Universal's single-quarter net profit is 4 billion US dollars, isn't the annual net profit 12 billion US dollars? Multiply that by the lowest price-earnings ratio of 30...that's a $360 billion market cap?

What a joke!

Even if the second quarter is a peak season, sales are booming and profits are high, other quarters may not have such benefits. However, with the current momentum of New Universal, it is no problem to make a net profit of 4 billion US dollars in the second quarter and 10 billion US dollars for the whole year, right?

Multiplied by 30 times the price-earnings ratio... that is also a market value of 300 billion US dollars!

Oh, God!

crazy!

Right now, the world's most valuable company is Exxon Mobil, with a market value of $420 billion.

In second place is General Electric, with a market value of $350 billion.

In third place is Gazprom, with a market value of $280 billion.

Next, Microsoft at $250 billion, Citigroup at $235 billion, Bank of America at $220 billion, Royal Dutch Shell at $220 billion, BP at $210 billion and PetroChina at $200 billion.

It can be said that apart from Microsoft, other global giants are banks and oil groups. (GE's biggest moneymaker is also financial services, like banks)

The market value of New Global at US$300 billion can completely rank third in the world after Exxon Mobil and General Electric!

Wait a few more years?

The subprime mortgage crisis caused the financial market to collapse, and the global banks were collectively plunged into bankruptcy.

Oil prices plummeted, and the market value of global oil giants collectively plummeted.

At that time... Maybe New Global can really top the list of global market capitalization!

Of course, the market value of $300 billion is only Dunn's most conservative estimate at present.

With such a good momentum, once the market is chasing it wildly... Exxon Mobil, the world's most valuable company, has a market value of only $420 billion.

In the face of high leverage with high price-earnings ratio, the gap is really not big!

Outside, "The Avengers" is still in full swing.

In its second week of release, the film grossed $150 million in North America, $320 million overseas, and $470 million the following week!

Counting the box office of $510 million in the first week, "The Avengers" was released in two weeks, with a global box office of $980 million!

It surpassed Daredevil 2, which was released for more than two months, and became the runner-up at the box office in the summer season, second only to the $1.06 billion "Pirates Alliance 3: At the End of the World"!

This summer, New Universal is really crazy!

Not only did the financial statements explode, they bombarded Wall Street. The movie market also exploded continuously, turning Hollywood upside down!

Internally, New Universal's executives didn't pay much attention to Hollywood.

Listing is the top priority!

On this day, Dunn convened the nine executive directors and two independent directors of New Universal Group, as well as most of the executives, to hold a financial meeting of the highest standard, and even Jobs rushed over from Silicon Valley.

To determine the listing price of New Universal.

The issue price is related to the interests of every new global shareholder.

Generally speaking, there are two ways to determine the issue price: fixed price and auction.

In simple terms, a fixed price is a price determined by Party A, and then all buyers must buy at this price.

Bidding is arranged by investment banks and relevant financial institutions to allow buyers to bid. If most buy at $10, price it at $10. If most are bought at $20, price it at $20. Listed companies have no say, and the initiative is in the hands of investment banks and subscribers.

For strong companies, most of them are issued at a fixed price!

As much as I said, it's as much as you want!

Anyone who wants to lower the price, get out!

Love to buy or not!

Such strong companies generally have great potential and have excellent financial statements. Because it is profitable, it will still be favored by capital and actively subscribed.

of course there are exceptions.

Like Google.

At the beginning, the price was too high, and investors were discouraged and reluctant to subscribe. As a result, Google's IPO was very unsuccessful, and a large part of the stock was not sold. Google had no choice but to stop it urgently. After a year, there was a second public offering, which raised enough money to develop the company.

Dunn's character is very strong.

The potential of New Universal is also huge. Its Facebook, Blizzard, Netflix, Dolby Laboratories, Pixar, Marvel Studios, imax, Prada, Discovery Channel, Dunn Pictures, Starz, and Universal Studios are all extremely high-quality. asset. In particular, several major Internet companies, even the IT elites in Silicon Valley, are all optimistic.

Not to mention the performance. In the second quarter, the revenue was 24 billion US dollars and the net profit was 4 billion US dollars! The ability to make money is strong, and it is completely comparable to those of the oil giants.

As for the composition of the management... there is no problem. The replacement of the old and the new is going on in an orderly manner, and there are few conflicts among the executives. There are also elites from various circles in the political circle, fashion circle, IT circle, Hollywood and Wall Street on the board of directors, and the composition of the members is very healthy.

The only criticism... is that Tang En holds too many shares, a full 830 million shares.

Absolute control is absolute power, which will make Dunn lack constraints. Once his mind is dizzy, there is nothing anyone can do to lead New Global into a place of doom. Just like Wang An Computer 20 years ago, it went to a dead end and sighed.

Fortunately, Dunn is smart enough. From the current point of view, none of the strategic decisions he has made have failed, and they have all been great successes.

With so many advantages, New Global will definitely use a fixed price method to issue shares. The major investment banks only provide some advisory, consulting and underwriting roles.

As for the price...

Controversial.

Prior to this, New Universal has announced that it will be listed on the New York Stock Exchange with the stock code "UNI", and plans to issue 188 million shares. In addition, New Universal also granted the listed underwriters an over-subscription option of up to 32 million shares.

A total of about 200 million shares will be issued.

The total share capital will be expanded to 1.2 billion shares.

According to the standard of fixed price, share net profit X price-earnings ratio.

According to New Global’s self-assessment, this year’s net profit will be between 100 million US dollars; the guidance given by major investment banks, the price-earnings ratio is between 30-35.

In other words, the initial estimate of the issue price will be between $300-408!

This is too exaggerated!

You know, the appraisal price given by the major investment banks last month was... $146!

Now the internal valuation of New Global is more than double the guide price of the investment bank!

Isn't this playing in the face of the major investment banks?

Citi, Goldman Sachs, Morgan Stanley, ****, Deutsche Bank...

When Dunn said the release estimate of "$300 to $408", the atmosphere in the conference room was a little weird. Even Jobs, who was fighting against the disease in the late stage of cancer, seemed to cheer up at this moment, his eyes widened, and he looked at Dunn in disbelief.

Boy, are you serious?

No kidding!

Of course, there is also a faint expectation in his heart.

Jobs holds only 5.5 million shares of Apple. 95% of his net worth is in New Universal shares, and he holds 48 million shares.

At a share price of $300, the stock would be worth $14.4 billion! His net worth will also exceed $15 billion!

According to this year's Forbes Rich List, he will be second only to Theo Albrecht, the boss of German supermarket Aldi, who is worth $15.5 billion, and ahead of Russian oil tycoon Abramovich, who is worth $13.3 billion. Ranked 21st in the world!

If the price is 407 US dollars... that's even more incredible, he will become the top ten super rich people in the world!

Jobs was quite excited and his heart was up and down.

He was once again convinced that it was correct to sell Pixar to Dunn.

This will be the greatest investment of his life.

However, the hot and dry mood didn't last long, and it quickly calmed down.

The $407 issue price?

impossible!

Let alone $407, even the issue price of $300 is impossible!

It's twice as high as the guide price given by the investment bank. How can investors in those markets follow? In terms of credibility, the major investment banks must be higher.

Moreover, investment banks are all underwriters, and they are responsible for selling stocks to shareholders. Such an outrageous price, the underwriters will not be too high.

Why did Google's IPO fail?

Because the investment bank offered a low price, Google disagreed and insisted on offering a high price, which was 50% higher than the investment bank's guide price.

As a result, it was out of stock.

The apparent reason is that subscribers are afraid to buy for fear of investment failure.

The fundamental reason is that the differences between the two sides are too great, which leads to the lack of sales enthusiasm of these investment bank underwriters, and they are too lazy to sell. At the level of Wall Street stockbrokers, even worthless junk stocks can be fooled out. The "Wolf of Wall Street" is not blown out. Just like real estate subprime mortgages, they are actually some B-grade junk loans, but they can be sold by Wall Street as the most perfect 3A-grade wealth management products. It is this kind of junk real estate product, and everyone has to buy it like a lottery. The world is being fooled by Wall Street to such an extent that it is not surprising that the subprime mortgage crisis occurs.

"Don't be nervous, this is just a rough range, I think everyone doesn't want to get rich?" Seeing everyone's strange expressions, Tang En, who was sitting on the chairman's seat, made a little joke.

The more than 30 people in the conference room laughed out loud.

I don't know if it's a wry smile or a startled smile.

Dunn naturally knew what they were thinking.

Before the meeting, he had communicated with several senior executives of the finance department, and he knew some things, and said sternly: "Everyone has seen the report for the second quarter, but there is no feedback from Wall Street yet~www.novelhall.com ~If nothing else, they will definitely make a new assessment of the expected issue price and corporate potential of New Universal, and then it must not be $146."

From the news of the company's listing to the final listing, it has to go through dozens or even dozens of rounds of issue price evaluation.

Just announce the offering price the day before the IPO.

This is a bargaining process.

Several major investment banks on Wall Street are underwriters of New Universal. Underwriters help listed companies sell stocks, and they can get a commission. The larger the financing scale, the lower the commission. Typically, a larger-scale IPO, the commission is between 2% and 3%, and a smaller-scale IPO, the commission is about 7%.

New Universal's IPO is a super-large scale, the largest in history, and the commission will naturally decrease. According to the agreement, it is 0.8%. (Alibaba is 1 percent, Facebook is 1.1 percent, and Twitter is 3.2 percent.)

0.8% seems very low, but the new global IPO, the financing scale will exceed 40 billion US dollars!

0.8% is $320 million.

This number is not small, but it is too inconspicuous for the financial giants' Wall Street investment banks.

New Universal had an account of 40 billion US dollars, and they only got 320 million U.S. dollars after a lot of work?

Too unbalanced!

This is not the way of Wall Street.

Obviously, investment banks have other tricks to make money in the underwriting of IPOs.