Reinventing the Millennium

January 3, Mandarin Oriental Hotel in Time Warner Center.

Yu Hong hurriedly finished the company meeting in the afternoon and came here to understand the boss's spirit.

When she knocked on the door of the presidential suite, she was surprised to find that Qi He, who was in charge of European business development, had already arrived early. Before she could sit down for two minutes, Pan Ben, who was responsible for both European and American business, also arrived in a hurry.

"Pour your own tea."

"Oh, there are all kinds of wine in the refrigerator, including whiskey and liquor. You can drink it if you want."

Fang Zhuo put down the "Wall Street Journal" in his hand and said with a smile: "Qi He came from Italy and Pan Ben came from Germany. They have worked hard. Today is just a casual chat. You guys have a good rest at night and we will meet again tomorrow. "

Yu Hong asked directly: "Then what are we going to talk about today?"

Fang Zhuo lit a cigarette casually, glanced at Xiao Yu again, rolled it into the ashtray, and said with a gentle smile: "Just a casual chat, Qi He was among the first batch of people to do business in the United States and was transferred to Europe. , Pan Ben came to Yike from IDG and did a lot of work. You two are now engaged in European business. Our Yike has just been listed. I'm afraid there will be any fluctuations that will make you have thoughts."

Yu Hong understands, today she has to give the truth.

Qi He also understood. He also kept an eye on the company's stock price in Europe, looking forward to further increases.

Pan Ben felt relatively stable after hearing this. After all, he was from IDG, and he knew that the stock price after listing was only a one-sided reaction. Like when Sina's stock price was at a low, the book capital was higher than the market value, and numbers within a certain range started. Ups and downs are normal.

"This market is a high-growth market. Our business requires both speed and stability. We cannot be disrupted by fluctuations."

Fang Zhuo mentioned his strategic attitude, smiled when he saw the three people listening attentively, and continued: "You three are usually doing the market, Mr. Yu is more in charge, but you are in the United States, you may know some things. It’s also rather vague.”

"For this company's listing, Goldman Sachs and other institutions have done a lot of work."

"If there is no institutional platform, our issue price will be the lower limit of the inquiry range of 19-23 US dollars, which is 19 US dollars, or the final issue price may be adjusted and lowered."

"$19, with a market value of around $5.3 billion."

“If the number of subscriptions in the road show exceeds 5 times, the issue price can be capped at US$23, and the market value is US$6.4 billion, which is a difference of US$1.1 billion.”

"The institutional platform finally allowed this number to continue to increase. Our No. 1 issue price was US$25 and the market value was US$7 billion."

"The gap between 53 and 70 is almost one Sina's market value."

Fang Zhuo said: "I don't really care about the market value of Nasdaq. The reason why institutions are needed to cooperate in raising the inquiry price for the road show is because the funds raised by our road shows are different."

"It would be difficult for us to raise US$400 million in normal road shows. I personally estimate that around US$300 million would be enough."

"We actually raised US$500 million during this road show."

"This is not a stock market figure, but our company's actual operational funds."

Without operation, the road show raised US$300 million. After operation, the amount was US$500 million, a difference of US$200 million!

Just this price difference is enough to further widen the music copyright moat, further expand market business, and further participate in industry competition.

What’s more, it’s much more than just the price difference.

Yu Hong was silent.

Qi He said excitedly: "Mr. Fang, then our European market can be more aggressive!"

Pan Ben had other concerns: "Mr. Fang, the organization wants to make money."

Fang Zhuo nodded and replied together: "We need to expand the market faster, well, so, although Yike's stock has risen a lot from the issue price, I guess there will still be shocks."

Pan Ben asked: "Have Goldman Sachs said hello to Mr. Fang? Washing the market, selling, etc."

Fang Zhuo shook his head: "They want to make money from the capital market, so why would they say hello to me like this? The tacit cooperation between us ended when the listing was successful. I guess they will not let go of such a money-making opportunity. "

What kind of money-making opportunity is this in the secondary market?

There is a good listed company as the backing, and it has used the media and even the institution itself to do a lot of propaganda. The leeks in the U.S. stock market are growing one after another, and it is almost familiar to the institution.

If you want institutions not to make such money, it will cost them their lives.

Therefore, a period of market value fluctuation is not easy to avoid, but in the medium to long term, such fluctuations will eventually give way to the company's basic business and financial performance.

After all, it doesn't matter. The current stock market fluctuations have little impact on company executive shareholders such as Yu Hong and Pan Ben, because they have to sell their shares after half a year, and the institutions by then have already left the market.

It doesn't matter to a major shareholder like Fang Zhuo, because his lock-up period is subject to Regulation 144, which can last up to one year and must meet certain conditions to prevent the transfer of benefits.

Fang Zhuo relaxedly talked about the details of the road show that were not known to the outside world. For example, he found another third party to conduct a price-to-earnings ratio pricing assessment. This number was different from that of Goldman Sachs.

In other words, another company believes that Yike's reasonable market value is lower than that given by Goldman Sachs.

When everything that needed to be talked about was done, Pan Ben and Qi He left, while Yu Hong stayed to communicate alone.

"Will the impact of stock price fluctuations be significant?" Yu Hong asked something that she had not asked before.

"It's okay for us, but maybe it's bad for the heart?" Fang Zhuo said with a smile, "Unless funds are needed for equity pledge, stock price fluctuations will affect the money you can get."

"Speaking of which, Yike is listed. Finally, the equity in my hand does not have to be difficult to find a Washington Mutual Bank like when I acquired Sina. Now I have to pledge the equity, and the liquidity will be much better."

Yu Hong asked again: "Then we can only sit back and watch this shock?"

"What else? If Yike is listed, related exchanges will be subject to much greater force, and we will act more compliantly." Fang Zhuo shrugged, "Besides, I don't know much about the operations of the secondary market."

Yu Hong frowned. Despite this, although the impact of short-term shocks would be attenuated in the medium and long term, she still felt a little unhappy in her heart.

"Ignore the market value. Time will bring Yike back to a reasonable price. What we have to do is to continuously raise Yike's reasonable price through performance." Fang Zhuo encouraged, "The work you are doing is to affect the company's market value in the most essential way. ’s chips.”

Yu Hong stared at her boss suspiciously and asked, "Really? Do you really have no other plans?"

"No, in fact, I am more thinking about domestic affairs." Fang Zhuo said affirmatively.

"Okay, let's talk about it, just to encourage me to work hard." Yu Hong stood up, "You said you don't understand the secondary market or capital operation, then I don't understand even less. It's true, I can What we do is to take charge of the market business.”

Fang Zhuo nodded repeatedly.

Yu Hong took two steps and suddenly turned around and said, "Smoking less is good for your health."

Fang Zhuo smiled: "Okay, Xiao Yu."

The marketing director left the suite satisfied.

Fang Zhuo put his mobile phone on the table, cut a cigar, flipped through the information in his hand, and fell into thinking.

…

Regarding the fluctuation of Yike's stock price, President Yike's prediction was not wrong.

If an organization wants to make money, it must create high and low prices.

Therefore, YIKE's stock price has fluctuated since the 3rd. It once broke through 40 US dollars and once fell below 30 US dollars in several consecutive days.

Shuffle, pull up, and ship.

Diving, rebounding, shaking the position.

Calculated based on the stock price, Yike's market value can rush from less than 8 billion US dollars to 10 billion US dollars in just a few days, and can then fall in the opposite direction. The changes in this number are dizzying.

During this process, Fang Zhuo did not receive any notification from the agency, and he understood this very well. This already belonged to different departments of the agency.

On January 15, just half a month after Yike went public, its stock price still had not stabilized. Fang Zhuo didn’t know why the same trick always worked in the stock market. He could only attribute it to the institutional channels and the media he controlled. There is great power.

On this day, Nasdaq opened normally. After two rounds of baptism, YIKE's stock price was once again at the price of $28 for institutions to cover their positions.

However, just as YIKE's stock price was slowly rising, the secondary market suddenly saw major selling, and the stock price quickly dropped to around US$26. Then the two parties began to compete for this price.

In the afternoon, YIKE's stock price fell to $26, and closed at $23.960 before the market closed.

That is to say, Yike fell below the issue price for the first time after the company went public. According to today's trend, it is likely to fall to the institution's original offering price of US$22 or even below.

At 6 o'clock in the evening, Fang Zhuo, who was in a meeting at Yike's New York headquarters, received calls from old friends, wanting to interview Yike's market value maintenance.

Fang Zhuo agreed.

At eight o'clock in the evening, he saw several familiar allotropes.

However, he was still surprised that people from IDG actually came, and they were the main force in smashing the market. The news about Yike's competitor Apple was released to IDG through him. They were not trapped this time, and they were still What are you here for?

"What's the benefit now?"

"What can I do? Make up news for you?"

"You were trapped? What can I do? It wasn't me! I don't understand the stock market at all. I'm still wondering about the market value of our company right now!"

"If you're trapped, you're trapped. Didn't you already make money before?"

"You can't. If you can't make more money, it's a loss."

"Even if it continues to fall tomorrow, isn't $22 your earliest cost price?"

"I think we have a common interest, which is to improve Yike's performance. If you come to me when you have time, why not think of ways to help Yike, such as music copyright and so on."

On the night of January 15, 2004, President Yike complained impassionedly to several agency heads in the conference room for half an hour. He finally agreed and would release good news as soon as possible.

Anyway, the short-term stability of the stock price is what I want, and the company's market value is indeed the medium- and long-term goal.

…

Chinatown, an apartment somewhere.

Boom, boom, boom.

Boom, boom, boom.

boom!

"Is your name Ji Longfen?"

"Mr. Fang wants to see you, let's go!"