Rebirth 1990: I have three golden fingers

Along the Huangpu River, the international buildings on the Bund shine in the sun, complementing the Oriental Pearl Tower on the other side of the river.

At this time, the construction of the Oriental Pearl Tower has been completed and the interior is being renovated. It is planned to be opened to the public by the end of the year.

The Njing Road Pedestrian Street is bustling with people, and there is an endless stream of pedestrians of all kinds, shopping, strolling, or tasting street food, creating a bustling scene.

At the intersection of the eastern section of the pedestrian street and H Nan Middle Road, Xinghai Plaza is under construction. It has been more than half a year since the construction started in September last year.

In order to open as soon as possible, Lu Dahai arranged a large number of workers to work overtime to meet the construction deadline. The main body is almost completed and the decoration stage can be entered in the second half of the year.

Citizens of Shencheng passed by this comprehensive commercial plaza under construction and were looking forward to it and filled with emotions.

Looking forward to what such a large shopping mall will look like, it will most likely become the commercial center of Shanghai.

I feel sad that such a magnificent commercial plaza is actually owned by a young rich man, and it is just one of them.

Many passers-by imagine that if they own such a commercial plaza, they can have whatever they want, choose clothes and bags as they please, eat, drink and have fun every day surrounded by a group of paparazzi, and their life has reached its peak and climax.

On the south side of Jiaotong University, such a Xinghai Plaza is under construction, but the progress is much slower. Currently, Lu Dahai is concentrating a large number of manpower on the Xinghai Plaza on Njing Road while the foundation is being built.

Anthony Santos has been in Shanghai from Chou Country for a few days, conducting an in-depth investigation and understanding of Xinghai Group's industry.

Anthony is the head of the capital management department of Citigroup. At Fang Bai's invitation, he came to Huaguo to inspect investments.

Investments of less than tens of millions of dollars originally did not require executive-level leadership. Citigroup executives are actually the bosses of a department, similar to the managers of Huaguo Enterprises.

However, the relationship between Anthony and Fang Bai was so good that Fang Bai personally invited him and he flew over after completing the procedures to go abroad without much hesitation.

Anthony also brought his team. After arriving in Shanghai, he did not meet Fang Bai immediately. Instead, he first visited this oriental city.

It was his first time to come to Hua Country. Although he was not very optimistic about Hua Country, after a real inspection, he felt that some aspects were very good. For example, the shopping malls were very lively, people were willing to shop, and the shopping malls lacked supplies.

"The shopping mall built by Xinghai Group in this prosperous location is really good, but I don't know whether it is willing to raise funds. I am more optimistic about this one." The accompanying analyst Jeffrey Westin pointed to the Xinghai Plaza on Njing Road for analysis. said.

Anthony, who was about fifty years old, said thoughtfully: "Haha, I guess Fang is not willing. Even though he is young, that guy is very shrewd. He is just an old fox. He always seems to be able to guess what you are thinking.

What we are going to inspect this time is the campus supermarket chain. "

Jeffrey lowered his lips and agreed very much: "That's true. I have dealt with Fang, a very smart investor."

Two days later, Anthony Santos led the team to inspect the operation of Hualian Supermarket. To their surprise, the business was so booming.

Many schools in Shanghai are like this, and there are absolutely no competitors within the school.

They did not meet Fang Bai first because they were afraid of being persuaded by Fang Bai's sharp eloquence, so they investigated in secret first.

In the past few days, team members have been responsible for inspection records and analysis, and the results they obtained are indeed surprising.

Of course there are such novel open supermarkets in their country, but they are not as popular as Hualian Supermarket, and the service quality is not as good.

After several days of in-depth investigation, everyone has a deeper understanding of the situation of Hualian Supermarket.

According to a detailed report submitted by Fangbai, the number of such supermarkets has reached close to 100 and is still in the rapid expansion stage.

"Anthony, the performance of Hualian Supermarket is indeed beyond imagination." After carefully studying the analysis report, Jeffrey said solemnly, "I think this is a worthwhile investment opportunity, but I don't know how many shares Fang is willing to sell."

Anthony agreed and added: "Well, it is indeed suitable for investment, and it is a very good investment seed. Let's meet with the party to discuss the matter in detail, hoping to win 20% of the shares."

The A round of financing is usually 10%, and the maximum is 20% of the shares. Everyone knows that the smart Easterner will not give them so many shares.

April 28th, the sun was shining brightly.

Fang Bai met with Anthony Santos and others at the company headquarters.

It was the first time for Anthony and others to come to Xinghai Group. They were slightly surprised to see the green belt full of spring, everything reviving, the surrounding buildings magnificent, business busy, and trucks full of goods coming in and out.

Anthony praised: "Fang, is this your company? The business is really busy, very good."

"Yes, you are welcome to Hua Country. How do you feel about Hua Country?" Fang Bai shook hands with everyone and smiled, and by the way, he favorably favored important personnel such as Anthony and Jeffrey.

A year has passed, and the two people's favorability towards Fang Bai has declined slightly.

Therefore, Fang Boka invited the two of them to Hua Country in advance a year ago.

This time, the favorability gained by him can last up to ten years.

After a while, Fang Bai will have to go abroad to gain favor with those investors and brush up on his contacts.

At the end of the year, it's the perfect time to invest in those three stocks.

Whether you can become rich in the next few years depends on going abroad this time.

"Well, it's great! Especially the food." Anthony said with a hearty smile.

Secretary Xu Kun, who was following Fang Bai, watched the chairman laughing and chatting with the foreigner naturally, chatting about everything. He was very impressed. This is a senior Citigroup executive from an ugly country. The two of them have such a good relationship?

After the two parties were polite, they went to the chairman's small conference room to talk.

After Anthony praised Xinghai Group, he asked bluntly: "Fang, does your Xinghai Group need financing?"

"Haha, Xinghai Group does not need financing for the time being. If there is demand, we will discuss it with you then." Fang Bai declined with a slight smile on his lips.

He took out a piece of information and handed it to him: "Your company's investment in Xinghai Investment Company is 80 million US dollars, and the current income is good. Mr. Anthony, do you have any plans to increase investment?"

"Your subordinate Simons came to see me once. The current annual interest rate is only 15%, which is too low."

Fang Bai raised his food and commanded: "NO, the annual interest rate of 15% is very high, and Citigroup cannot guarantee it and cannot achieve it.

The 20% given before was just because Xinghai Investment Company was not famous.

If we open up to fundraising, there will be no shortage of funds at all, but I want more stable long-term partners. Not just anyone can cooperate with me. "

Anthony listened to Fang Bai and read the information.

At the same time, I have to admire Fang Bai. In the three years since its establishment, Xinghai Group has reached assets of three to four billion US dollars and is in a period of rapid growth.

In other words, even if Xinghai Investment Company is operating poorly, Fang Bai himself will be able to repay the interest and principal.

After a slight hesitation, the annualized interest offered by Xinghai Investment Company was indeed very good. They had invested in many projects, but if they could not reach this amount, they might as well withdraw and transfer to Xinghai Investment Company.

"Okay, we'll invest another $200 million."

"It's a pleasure to cooperate with you. I guarantee you won't be disappointed. You can withdraw your investment at any time after one year. At that time, you must be secretly grateful for your wise decision." Fang Bai laughed and stood up to shake hands with him.

US$200 million is a small amount for Citigroup, but it is a permission that Anthony can personally agree to. If the investment is larger, it will need to be decided at an internal meeting.

Secretary Xu Kun, who was standing by and serving, was very shocked: Did he get 200 million US dollars just like this?

Their chairman only said a few words, and the foreigner agreed, just like he was haggling at the vegetable market.

200 million US dollars, this is no child’s play.

And the risk engineer Jeffrey didn't make any suggestions and fully agreed with his leader's operation.

What Xu Kun didn't know was that Anthony and Jeffrey's favorable impression of Fang Bai reached 85, which meant they were very trustworthy. In addition, Fang Bai did not lie to them. Since it was worth investing, there was nothing to hesitate about.

Next, Fang Bai handed Hualian Supermarket's recent financial information to Jeffrey Weiss, and the two parties discussed Hualian Supermarket.

The foreign staff looked through and asked questions, mainly looking at Hualian Supermarket's store opening speed, profit margin, cost expenses, and annual profit growth.

They have conducted inspection and analysis for several days, and now the main purpose of reviewing the information is to roughly check it.

Fang Bai had submitted information before, but that was a month ago.

Including the company's three-year financial statements, operating conditions, financial situation, equity distribution and other information.

What has been submitted so far has been compiled in the last few days.

The company valuation work does not result in a short period of time, but requires a lot of preparation work.

Currently, there are 100 Hualian Supermarkets in operation, and 10 supermarkets are under construction.

Fixed assets including the cost of building a supermarket are about 60 million yuan, debts for goods are about 10 million yuan, working capital is about 20 million yuan, and net assets are 70 million yuan.

But it makes money quickly, with annual profit growth exceeding 100%.

The highest valuation of Fangbai is about 2 billion yuan, or 2.5 billion yuan, with a maximum transfer of 10% of the shares;

Anthony's valuation is US$200 million, equivalent to 1.736 billion yuan, and he plans to take 20% of the shares.

Fang Bai said very confidently: "Mr. Anthony, if it were not for the listing, you would not be able to obtain such high-quality resources. I am very confident that the profit growth rate of Hualian Supermarket can reach 80% in the next five years." above.

Five years later, it will be worth at least $2 billion, and Citigroup's investment will earn more than five times its investment profit. "

In fact, Anthony doesn't care if the valuation is higher as long as he is optimistic about the investment. He just hopes to take more shares so that he can earn more.

However, Fang Bai persisted and said that Citigroup could continue to invest part of the B round of financing.

The two sides continued to discuss and soon came to a conclusion.

Citi raised US$29 million, equivalent to 250 million yuan, for 10% of the shares, which means a pre-money valuation of 2.25 billion yuan and a post-money valuation of 2.5 billion yuan.

If Fang Bai didn't know what Anthony Santos was thinking, the pre-money valuation might be worth up to 2 billion yuan. Unexpectedly, the other party's upper limit was higher.

The money raised does not belong to Fang Bai personally, but to the company, which will be used for company development.

Financing and transfer are completely different concepts.

That is to say, from this moment on, Fang Bai really needs to be responsible to investors.

Fang Bai did not dilute his classmates' shares this time. The dilution was made up from his personal shares. This was all allowed and was a private act that had nothing to do with Citigroup.

That is to say, after the financing is successful, Citigroup will hold 10% of the company's shares, Fang Bai will hold 78.2% personally, and his classmates will hold 11.8%.

Next, both parties sign a share transfer agreement, legal documents and related agreements.

After signing, Fang Bai stood up and shook hands with the other party:

"Mr. Anthony, it's a pleasure to work with you. We will meet again soon in a few months."

"Okay, I'm looking forward to it very much. Just let them be responsible for the next formalities. I will return to China soon." Anthony Santos laughed and pointed at the entourage next to him.

After Hualian Supermarket digests its A-round financing, Fangbai plans to go public by the end of the year, or mid-1995 at the latest.

Of course, this depends on the timing. According to the current situation, it will be better to go public next year.

In short, before the 1997 financial crisis, Fangbai had to cash out part of his shares to prepare for market shocks.

Normally, it usually takes more than a year for a company to go public after Series B financing, because during this process, the company needs to continue to expand its business scale, strengthen its financial and governance structure, and open up the market to increase its value and attract efforts to make full preparations for listing.

However, the specific listing time will vary depending on the company's specific circumstances, including the company's size, business, financial status, market environment and regulatory requirements.

After completing Series B financing, the company needs to apply for listing in accordance with the requirements of securities regulations and undergo review by the China Securities Regulatory Commission.

During this process, the company needs to cooperate with intermediaries such as brokers, lawyers, and accountants to ensure the compliance and smooth progress of the listing process.

In other words, Fang Bai is not sure about the specific launch time.

It is now the end of April. If the A round of funds is digested quickly, it may be necessary to raise funds again in a few months, that is, round B financing.

During Series B financing, the shares of all shareholders will be diluted.

During the last IPO financing, shares were diluted again.

In Fang Bai’s plan, after the A round and before the B round, Fang Bai will reward each student with 0.6% of the shares, leaving Fang Bai with 54.6% of the remaining shares.

It is planned to transfer 10% of the shares in the B round of financing. Each student's shares will be diluted to 0.54%, and Fang Bai's personal shares will be diluted to 49.14%.

After listing and financing again, 20% of the shares were transferred. Fang Bai's remaining shares were approximately 39.312%, and each student's shares were diluted to 0.432%.

After Anthony Santos left, there were many follow-up matters for Series A financing.

If it is a listed company, after successful financing, it needs to report financing-related information to the Securities and Exchange Commission, including the financing amount, purpose, etc.

However, Hualian Supermarket Company is not yet listed and does not need to go through the Securities Center.

Fang Bai needs to inform other shareholders, namely his classmates, about the financing situation and ensure that they understand the latest situation of the company and its development direction in the next few months. They have the right to know this information.

At the same time, a press release regarding the successful financing will be issued to the public to expand the company's visibility.

The next morning, Fang Bai came to school again.

Before coming, he informed his classmates about a class meeting.

At this time, at ten o'clock in the morning, after two classes, students from Class 3 of Mechanical Engineering gathered in classroom 302 of the first teaching building. They were all talking about what was going on at this meeting.

"Why did the boss suddenly notify everyone of a class meeting? This has never happened before."

"It's probably a very important matter. Is it a matter of financing?"

"Yang Tan, what did the squad leader say when he called you?"

Yang Tan curled his lips: "I didn't know that the boss just asked when there would be no classes, so I said I was free for these two classes. The boss asked all the students to gather together, and then hung up the phone, making it mysterious. I want to know too, and then I’ll let everyone know.”

"What's the rush? I'll be here in a moment."

In fact, many students probably guessed that it was about financing, otherwise, Fang Bai had not taken the initiative to gather for a meeting in the past three years.

I just don’t know whether I failed or succeeded, so many students are nervous and worry about gains and losses.

The classroom was very noisy. A colleague suddenly saw Fang Bai walking into the classroom leisurely and exclaimed: "The monitor is here!"

In an instant, everyone's eyes were focused on him.

However, when Fang Bai saw the eyes of his classmates, his expression was still light, without a smile or sadness, so that no one could guess what he was thinking.

After walking onto the podium, he coughed, and everyone immediately became quiet, and you could hear the needle drop in the classroom.

Fang Bai took a breath and sighed: "Hey, there is good news and bad news. Which one do you want to hear?"

As soon as the words were spoken, the students became a little uneasy. It seemed that most of the financing had failed.

"Boss, let's break the bad news."

"Yes, isn't it bad to hear the bad news first?"

"Monitor, I think the failure of financing is not bad news. At least our supermarket has always been profitable. If this one is not good, there will always be investment institutions that are interested in it."

"Yes, squad leader, if you fail, just fail. It's not a big deal." (End of Chapter)